It is either you need one, or you become one. In this article, you will understand the seven reasons why you need a good financial advisor.
First, let us start with the question: Why do we need a financial advisor? One reason is that a financial advisor has unique insights into the direction of the market. He gives his client an advantage. But of the many roles of a financial advisor should play, FORTUNE TELLER is not one of them.
The truth is no one really knows what will happen in the future. If anyone says he knows, be careful because you might get scammed.
Some people also think that the role of a financial advisor is to deliver high returns year after year. Good advices don’t necessarily translate to accurate forecasts.
How do you spot a good financial advisor?
A good financial advisor always begins with the needs, risk appetites and circumstances of his client, irrespective of what is going on in today’s changing world.
He does not make forecasts about economies and markets. Instead, he combines his TECHNICAL expertise with an understanding of how these money issues affect the life of his clients.
So, here’s a list of reasons why you need a good financial advisor.
ONE | HE IS AN EXPERT
If you are planning to invest, your financial advisor will provide you with client-centered, and not product-based, expertise to help you assess the state of your finances. He will also help in meeting your goals by developing strategies.
TWO | HE IS A LISTENER
Because the market is uncertain, your emotions might get triggered which might result to poor decisions. A good financial advisor will listen to your fears, and drive those fears away by providing practical and long-term solutions.
THREE | HE IS A MENTOR
A good financial advisor will teach you about risk and return, the value of diversification and asset allocation, and most importantly, discipline.
FOUR | HE IS A PLANNER
Once you understand these lessons, he will develop and plan out strategies that will match your risk appetites and life goals.
FIVE | HE IS A COACH
Fears and doubts arise inevitably. When that happens, a good financial advisor will be your coach and keep you on track of achieving your goals.
SIX | HE IS A GUARDIAN
Because he is an expert, the long-term role of a good financial advisor is to keep you informed of the issues that may affect you.
SEVEN | HE IS AN INDEPENDENT VOICE
In a world full of sales people and product pusher, he is an independent and objective voice.
Now, can you put a price on that?
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littlemisadvencha is a Filipino Civil Engineer, M.S. student in Structural Engineering and a fur mom of four-legged babies. She writes about her experiences to inspire and educate.