A financial advisor is a professional trained to help someone who needs to better manage their finances overall or solve a specific problem or goal.
Whether it’s getting out of debt, planning for retirement, saving for a home, or learning better budgeting skills, financial advisors are trained to handle all these types of financial issues. However, many of you may be wondering when you should hire one, and if it’s worth it.
We hired financial advisors and spoke to two people who were happy with them. See also Why You Should Hire.
Elder Zamora, a PhD student in psychology, found himself in the unique position of receiving a large sum of money three years ago, partly through an inheritance and partly through a stock acquisition.
“I’m naturally pretty good at money management, but I’m not very smart about investments and financial planning,” he said.
This was more money than he had ever had to manage, so he decided to consult someone who had a better understanding of financial matters and investments before taking any action.
communication is key
Mr. Zamora’s financial advisors and he “have had lengthy conversations about what I will do financially in the next few years, then, and beyond until I retire comfortably.”
He found his financial advisor to be very patient and thorough in explaining all his options and leaving room to discuss his concerns. But she also helped expand the budget to include longer-term plans.
“Suddenly, having more financial options available has really helped me rethink what goals and milestones I want to set for myself,” he said.
With her help, Zamora feels that she has achieved her goals better.
“Without her help and guidance, I would have been really lost,” he said. “Her knowledge of sustainable economic growth gave me confidence for the future.”
keep in touch
While you may not need to contact your financial advisor on a regular basis, Zamora does contact him about twice a year. “To see if everything is as-is and if any changes or adjustments are needed.”
Hiring a financial adviser can be expensive, so finding the right one is important, but if she had done it alone, “I would have been full of anxiety and doubting myself all along,” Zamora admitted. . He felt reassured by having a financial advisor.
please do your research
However, Zamora recommends that finding the right advisor takes effort.
“Do your research and go over who you want to work with,” he said. “I was lucky enough to find mine through a personal referral who had worked with them in the past. Sometimes you can’t be too careful or too thorough.”
Get support for your retirement goals
Another great reason to work with a financial professional is to set retirement goals and work towards them.
JC Lynne, author and CEO of Ngano Press, LLC, said: We have a lot of work to do, but with the ‘don’t panic, wait’ philosophy, there’s a fine line between staying there and ignoring. “
Ms. Lin and her husband needed advice on whether their retirement investments were profitable and how to manage their accounts. With multiple IRAs and several life insurance policies from various employers, they wondered what the best approach would be.
“She gave me clarity in terms of planning,” Lynn said of their advisor. “She showed me how to transform my investments and savings so that, given current life expectancy (Armageddon and climate change aside), I actually have the money when I need it.”
By working with a planner, I no longer have to do my own financial in-depth research and have access to trusted expert advice.
Get help with the integration
Another thing their advisors did was help sort out and consolidate the “messy IRA and 401(k),” Lin said. “She was able to switch between multiple accounts and that alone made our lives easier. She also clarified our life insurance plans.”
Find an expert
Lin and her husband plan to continue working with sound financial advisors.
“We go to doctors because they have special training,” she said. “We take our pets to the veterinarian because they have special training. is ridiculous.
“[Our advisor] I also recommended a good accountant who recommended a good lawyer. Because, in addition to having to consolidate our investments and retirement, we didn’t have a will or a trust. “
know what you want
Before working with a financial advisor, you should make a list of your needs, Lin says. “Need help with debt, taxes, investments, or retirement? Find out how much it costs. … Find out. Check with FINRA, NAPFA, Better Business Bureau.”
Also, make sure the advisor you choose is someone you trust.
“Fiduciaries have a legal obligation to provide full disclosure and transparency about their recommendations,” she said. “If they sell a product, like we did with life insurance, make sure they explain the policy, costs and options.”
Equally important, she says, “find someone who listens to you, understands where you are in your life and career, and is easy to communicate with.” added.
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