13 reasons why a finance advisor is vital to your life

Financial advisors help people manage their money and reach their financial goals. (Rawpixel pic)

Time.com shared a statistic once: 65% of investors say they struggle to avoid making emotional decisions about their money during market shocks.

This is reason enough for everyday folk to consider hiring a finance advisor when it comes to managing their personal finances.

Here are 13 reasons why this is a solid idea…

1. Check and balance

Every individual has opinions that differ from the next person simply because personal experiences colour these opinions.

The one person who can be objective however is a personal finance advisor.

This is an individual who you can bounce ideas off, discuss different possibilities and outcomes with and ensure that whatever financial decision you make is backed by research and facts, and not emotions.

2. Accountability

Everyone needs that extra “push” to reach their goals. While you may be intrinsically motivated to achieve your goals, you could still benefit from encouragement and guidance from a knowledgeable coach who can ensure you’re on the right track to achieving your goals.

3. Financial education

No matter how intelligent you are, it is impossible to know “everything” in life. So, why not engage an expert in a particular field, such as a credible personal finance advisor, who knows best about personal finance practices, performs investment analysis, asset allocation, and who uses that knowledge to guide you in making an informed decision?

Financial seminars or investment workshops are useful in acquiring specific skills but the onus is on you for lifelong financial learning.

4. One less burden to carry

There are enough stressors in life and your finances need not add to your list of burdens. Life is short.

Live to the fullest, invest in people, and leave your financial worries to your personal finance advisor, who will place your needs above personal gains.

5. Prevent unnecessary financial loss

While it is impossible to predict the movement of stocks because of its high volatility, it is possible to avoid unnecessary loss if one has an investment plan, does due diligence and takes necessary action.

There are some things that you don’t have to experience in life – irreversible financial loss is one of them.

6. Expertise access

Similar to other professional jobs, well-known financial educators also have their own area of specialisation or expertise.

Want to learn a specific area or need specific advice, but don’t know how or where to find them? Chances are higher in connecting with them by asking a knowledgeable professional.

7. Better financial decisions

Making better financial decisions is just a text, call, or e-mail away. Need advice on whether stocks you’ve been eyeing is a good buy? Is Bitcoin a safe investment platform? Your dependable personal finance advisor is now a mere button-click away.

8. Financial freedom

How much do you need for your retirement fund? A personal finance advisor can customise a financial plan so you reach financial independence sooner than later.

9. Personal finance goals

Are you able to meet your financial obligations? Is the amount in your emergency savings sufficient in case of retrenchment? Which debt should you prioritise to pay off?

Can you travel wherever and whenever you like? Or maybe you’re a foodie and would like to order without having to look at the right side of the menu anymore?

An experienced personal finance advisor is able to guide you on how to reach your goals.

Personal finance advisors are helpful to bounce ideas off or to ask about complicated investment strategies.

10. Risk management

Are you overpaying for your life insurance coverage? Is your current medical and disability insurance coverage sufficient?

Is a personal accident insurance necessary? A trained personal finance advisor helps you find answers catered to your individual needs.

11. Investment planning

How much do you allocate to diversify your investments? What kind of investments should you be looking at based on your age and income?

You need to look at personal finance, risk management, investment planning and financial freedom as separate yet interrelated entities.

Having a qualified personal finance advisor helps you make that distinction clearly to make better decisions and guide you in your overall financial portfolio.

12. Taking responsibility

Depending on where you are on your journey of financial independence, engaging a reliable personal finance advisor helps you grow, maintain, protect, and further your wealth.

You could be a bright-eyed-bushy-tailed fresh graduate, a worried housewife, or even a successful tycoon leisurely enjoying life.

This is about you taking responsibility for your finances; safeguarding yourself (and loved ones) from potential sticky financial situations that could negatively affect the quality of life that you had envisioned for you and your loved ones.

13. You are worth it!

Essentially, you are investing in yourself. The returns are not quantifiable for the choices you make today for the lifestyle that you wish to have tomorrow.

Engaging a financial advisor adds value and a good one is an investment, not an expense.

There are a plethora of options to manage your wealth and it can be difficult to trudge through the complex financial landscape alone.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.