You may have asked yourself many times, “Am I one financial consultant I need to?” And most likely yes, you need a financial advisor. A financial advisor is a professional who can help you with finances in a variety of ways. These experts can help you with issues such as investing, financial planning and retirement planning. Of course, not everyone needs a financial advisor; However, if you have a certain amount of assets and you are thinking about your financial future, working with a financial advisor will be to your advantage. In this article, we will talk about what financial advisors do and why they are important; In addition, we will tell you when you need a financial advisor the most. be with us.
Why do you need a financial advisor?
Financial issues can sometimes be complicated. Buying and selling stocks, preparing for retirement, and protecting property for the purpose of passing it on to your heirs are all complicated, and if you were to take care of them all alone, you would surely be confused.
Financial advisors can help you do all of these things easily. They look at your financial situation as a whole and help you design a good financial plan and make decisions that align with your larger financial goals.
In addition, financial advisors have the necessary expertise in investing and can make smart decisions that will increase your capital. Financial advisors help you balance your assets in a way that is consistent with your goals and change them as you get older or change your goals; At the same time, they help you maintain your assets. Preservation of assets is one of the things that becomes more important as you get closer to retirement age. With the help of a financial advisor, you can retire safely whenever you want.
Who needs a financial advisor?
You may be asking yourself, ‘Do I need a financial advisor?’ In this case, it is better to carefully examine your finances and see if you know what you want to do with your money and capital or not. If you feel you can handle your financial needs on your own, you do not need a counselor unless you are about to make a major change in your life; But if you do not know what to do with your money or you are stressed or you think you can not make the best possible decision, you should seek help from a financial advisor.
Many people think that financial advisors are only for the very rich; The need for a financial advisor has nothing to do with age, occupation or income. In general, you will need financial advice when your financial life goes beyond paying and withdrawing money into your account and withdrawing it, or when you want to invest in your children’s future or education, or when you want to buy a home or save for retirement. . Many financial advisors ask you for initial capital; So you need to choose a consultant who is in line with your current financial situation.
If there is going to be a major change in your life, you need a financial advisor. This change can be family formation, large inheritance, or separation. For example, if you have children, it is best to think about saving as soon as possible to pay for their education or to leave them an inheritance. A good financial advisor can help you with all of this.
Another time when you need a counselor is when you may be making emotional decisions. Most of the time, in high-risk investments, there is the possibility of making emotional decisions. In such cases, financial advisors can protect you and your capital from emotional decisions; This way you can design the best long-term plan for your money and allocate your budget to a portfolio that best fits your risk. [پورتفولیو (Portfolio)، که در فارسی اصطلاحا به آن «سبد» میگویند، ترکیبی از سهام با سایر داراییها است که سرمایهگذار آنها را خریده است. به عبارت سادهتر، اصطلاح پورتفولیو یعنی تشکیل سبد سهمهای مختلف و سرمایهگذارینکردن بر روی یک سهم.]
If you are satisfied with your financial situation but still want to consult an expert to make your mind even more comfortable, you can only ask a financial advisor for help once a year. The rest of the year you can manage your own finances; But if you do not like finances or do not have a background in it or if you have a lot of money and do not know what to do with it, it is better to consult a consultant.
What kind of financial advisor do you need?
There are two types of financial advisors to choose from: asset manager and wealth manager.
If you only need someone to help you invest in stocks, bonds and other financial products, an asset manager is the best choice. The asset manager will create a portfolio for you with financial, risk-taking, Risk Assessment And your time horizons are consistent.
Wealth managers, on the other hand, are more suited to people who have a broader view of their finances. In addition to helping you build your portfolio, the wealth manager takes step-by-step protection of your assets in the long run, taking into account your financial health. Wealth manager can in cases such as Taxation, Help plan, save for education and help with various charities.
Many financial advisors provide services in both areas. Before choosing a financial advisor, consider these two options and consider your financial goals so that you can choose the best advisor for you.
Where can you find a financial advisor?
There are many ways to find a financial advisor. One surefire way is to ask your family or friends to introduce you to someone. This is an understandable instinct. After all, why not take the advice of people you trust? But there are drawbacks to this method.
The needs and goals of your family and friends may be different from your needs. For example, many people choose a financial advisor with the help of their parents. The problem with this approach is that the needs of a 30-year-old are very different from those of a 50- to 60-year-old couple. If you want to listen to the advice of your family or friends, be sure that the financial advisor can meet your needs. Ideally, ask for advice from someone who is in a similar situation to you.
Is technology better or a financial advisor?
There are many financial planning apps out there these days that work much like a financial advisor and make day-to-day financial management easier. If you are confident in your financial capabilities, you can use these applications instead of financial advisor.
When do you most need a financial advisor?
Are you proficient enough in financial management to be able to make all your investments on your own? Or do you need an expert?
This is a question that may have occurred to many. If you are in one of the following situations, you probably need a financial advisor.
1. You will retire soon
Having a large income at retirement is not easy and requires cost management, savings and insurance.
2. You manage your investments yourself
You should always allow someone to impartially monitor your investments. Maybe you want to make emotional decisions or have an optimistic view of your portfolio.
3. You have a child
If you are planning for their educational future or want to leave a legacy for them, a financial advisor can suggest many ways for your children to have a secure future.
4. You have inherited
Have you ever heard the story of people who went bankrupt after becoming a billionaire overnight? Managing a lot of money that you suddenly get is not easy.
5. Do you have a financial advisor?
Depending on how you choose your consultant, there may be better options for you. People who are referred by family or friends may be good, but they will not always get the best results.
6. You are about to separate
Divorce can ruin your finances. The advice of neutral experts is very important.
7. You want to increase your money and capital
If you are still years away from retirement, good decisions today can give you a better tomorrow.