5 reasons why having a financial adviser is important
In the age of information, the answer to nearly any question is available at your fingertips. Want to know how to cook a particular meal or repair something in your home? All you have to do is get online and ask your question. You’ll likely have your answer in minutes.
This is true of nearly every area of knowledge, including personal finance. Many may wonder why they would ever need a financial adviser with so much information available for free online. The answer lies in the distinction between information and advice.
There’s no arguing that financial information is abundant and readily available online. However, too much information can be bad when it’s not offered with trusted recommendations or advice. That’s where a financial adviser steps in.
A financial adviser gets to know your situation and recommends solutions based on your specific needs and goals. The adviser can cut through the noise of information and bring you only the information that’s pertinent to your situation. In short, your financial adviser can save you time and money while guiding you toward your goals.
Here are five ways a financial adviser can help you take control of your financial future.
1. Help you stay invested
One of the biggest mistakes investors make is selling at the bottom of the market and buying at the top. This behaviour is driven by emotion. A financial adviser can help you rethink rash decisions and keep you focused on your long-term goals.
2. Provide a second opinion
It could be that you’re on the right track with your thinking, but you just need someone to listen and provide reassurance. Other times, you may need to hear someone tell you that you’re dead wrong. Either way, a financial adviser is there to listen to your thoughts, ideas, and worries and provide feedback and guidance to help you make an informed decision.
3. Help you develop a plan
It’s tough to make informed financial decisions if you don’t have a plan in place. A custom financial plan can put your goals and needs on paper, along with a detailed list of the actions needed to get there.
4. Provide you with access to alternative investments
The investment world includes much more than just stocks and bonds. Investments in assets like commodities and structured products may help you control your risk. A knowledgeable financial adviser can present the advantages and disadvantages of these alternative investments and recommend whether they’re appropriate for your situation.
5. Serve as a resource for your family and dependents
Are you the financial brainpower for your family? It’s not uncommon that one person handles all of a family’s financial decisions. If that’s you, what happens if you’re indisposed? What if you’re disabled or even if you pass away? Will your family know what to do? A financial adviser can assist your family in tracking down all accounts, bills, investment, and property. He or she can also fill your family in on your plans and strategy so they can decide how to move forward.
There are many things you can do yourself with a little research online. Planning your financial future shouldn’t be one of them. At the very least, an experienced adviser can serve as a second opinion for your ideas and plans.
A good financial adviser believes that he is the most important person in someone’s life. As a result of their actions, a family can continue, a business can survive, and a legacy can be born. Our unique purpose is to ensure that the money outlives the people, to ensure what can go wrong, and to gain the luxury to invest in what goes right.
Value is created by the size of the problem an adviser can solve, so now tell me a profession that solves more problems than ours!
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
To learn how to choose a great financial adviser, download our free guide.
Blog published by Mike Coady.