7 key benefits of having a financial advisor—Even if you’re managing fine

It's challenging to deal and plan the effective management of your own money even if you feel you are financially competent. Have a look at these seven reasonable reasons why you'll benefit from reaching out to a financial advisor regardless of where you are today in your finances and investment career:

1. Professional knowledge and guidance

Financial planners understand the trend of the market, tax laws, and investment planning. This knowledge equips them with conceptual understanding on finance so that they can suggest things that are tailored according to your long term financial objectives. Since the economy changes and evolves every day, having a sane friend by your side can be a decisive factor for successful investment decisions.

2. Personalised financial planning

Every individual has his or her own financial situation and challenges to deal with. A financial planner carefully checks your current assets and liabilities, and future objectives to develop an individualised personal financial plan. This individual plan enables your assets and holdings to be used according to your life objectives, be it for educational savings for children or retirement planning.

3. Risk management

Investment is itself a risk, and a financial planner guides you through the risk. They diversify your portfolio across different asset classes such as: mutual funds, gold, debt etc., in a manner that the risk is eliminated to the highest possible extent and returns are optimised. They mix risk-bearing investments and risk-free investments so that your money can be channelised towards growth along with prudent savings as well.

4. Time-saving convenience

To career-driven people, money is always a hassle. A financial planner sits around and waits to observe investments and adjust when necessary so that you have time to worry about something else. This aspect of saving time is invaluable as much as the peace of mind knowing your money is in order and in proper hands. He will also help you in understanding simple concepts of debt and investments such as: credit cards, credit scores, EMIs etc.,

5. Tax efficiency

Now proper planning in taxation is required to achieve the maximum return on your investments. The knowledge and understanding of the same is seldom available with non-finance career professionals. Your tax planner in this case helps you make tax-intelligent decisions that enable you to keep more of your hard-earned money and are law-abiding at the same time. Such fiscal prudence in tax planning can be very powerful in creating your overall net worth.

6. Emotional discipline

Market volatility can make you take irrational, sudden, emotion-based decisions that jeopardise long-term financial security. Your money advisor provides you with an emotionless perspective based on his fundamental understanding. This helps you in keeping calm instead of making greedy or fear-based decisions. He makes you think rationally and not greedily or fearfully. This emotional discipline comes with experience that is why a sensible financial adviser can always be of immense help.

7. Long term security

All else being equal, it really is about preparing your money for the future. Everything in life and investing is nothing but preparation and efficient planning. With the aid of a financial adviser to point you in the right direction, you are able to have the basis upon which you can build long-lasting financial success.

Hence, generally hiring a financial adviser is a preparatory move in the way towards financial security and independence. It is always nice to have someone qualified with you to guide you and add extra value to your investments, that is why you should always consider having a financial advisor.

Disclaimer: This article is for informational purposes only and does not constitute financial advice; please consult a qualified financial advisor before making any financial decisions.