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(Last Updated On: September 17, 2019)

In today’s world of personal finance, there’s a lot to navigate, and we have learned to do a lot of that navigating on our own. From debt settlements to bankruptcy, the plethora of information out on the internet about all things financial makes it pretty easy to question why anyone would even consider getting a financial advisor.

The answer, the reason why you should at least think about getting one, lies in the same reason you might think you don’t need one: today’s world. Yes, there is a veritable fountain of information available at your fingertips on the worldwide web about how to manage your money, and yes, since it’s your money, it would logically make more sense to take care of it yourself.

But while you work and earn money, more often than not you don’t have an actual degree in finances. Beyond that, do you really have the energy and time to invest the necessary resources into figuring out how best to invest and spend your money? This is where a financial advisor can be very worth it.

When to Hire a Financial Advisor

The best time to hire a financial advisor is when you realize one of three things:

  1. You don’t know what to do when it comes to planning your financial future.
  2. You like the idea of managing your money but just don’t want to take the time to do it. 
  3. You realize it would benefit your financial plans long-term to have an impartial 3rd party opinion.

If you have a decent-sized emergency fund and believe you can take on the expense of a financial advisor, it’s possibly going to be a good investment for you.

Benefits of a Financial Advisor

Financial advisors usually cost from 0.5 to 1 percent of your portfolio each year. But if you think you could benefit from any of the perks a financial advisor can provide, the money spent could be well worth it. Financial advisors are known for accomplishing the following:

  • Guidance for developing an overall investment strategy
  • Rebalancing portfolio
  • Minimizing taxes
  • Allocating assets
  • Structuring retirement accounts

Doing all of the above can improve your financial future as well as something as basic, yet important, as your credit score. Really, it’s a win-win.

Finding a Good Financial Advisor

Finding a good financial advisor means finding someone who can do all of the things listed above as well as one additional thing: behavioral coaching. Behavioral coaching is remaining calm, cool, and collected in the face of financially-based fears and other emotions.

The market can be unbalanced or uncertain at times, but a good financial advisor is someone who will guide you develop an investment strategy, rebalance your portfolio, minimize your taxes, allocate your assets, structure your retirement account, and provide you with steady, reasonable, and logical reassurance in the face of financial scares. Learn more about how a financial advisor can help you with your unique financial situation.