Hiring a financial advisor might be the smartest money move you could make. Whether you want to be debt-free, build your nest egg or plan for retirement, financial planners can provide value. Here are four reasons they can help you build and protect your personal wealth.
1. Investing in a Professional Could Help Your Money Grow
Hiring a financial advisor may help your investment performance. Of course, they do come with a cost. Some charge fees, generally .5 to 1 percent, while others may charge commission. However, the amount you pay a professional advisor may be well worth it if your portfolio performs along or surpasses market averages.
Remember, too, that financial advisors aren’t just for the wealthy — that’s one financial planning myth you should definitely ignore.
2. Hiring a Financial Advisor Gives You Access to Professional Knowledge
You probably take your car to a mechanic when it breaks, so why wouldn’t you want professional advice when it comes to your money? Researching investment strategies and staying up to date on financial markets is a significant undertaking, one better left to professionals.
As you search for a financial advisor, look for one with the right credentials. Seek out those who have professional designations from the American College such as ChFC or CFP. Your advisor will also have security licenses that allow them to recommend a variety of investment choices that best fit your needs. Financial advisors may also have licenses that let them provide additional services, like selling life insurance or fixed-income investment products. Look for these four things when hiring a financial advisor.
3. A Financial Advisor Can Help Keep You From Making Emotional Decisions
Investing can be a highly emotional experience, but it shouldn’t be. Individual investors tend to overreact and make emotional decisions that can hurt their financial future. It’s OK to have emotions — your money is important — but a financial advisor can help take that element out of the process.
4. It’s Easier to Plan for the Future When You Have a Financial Advisor
Your financial advisor can be your biggest asset when planning for your future, including college, retirement or estate planning. They form a critical team with your attorney, accountant and your insurance agent to help you make your money goals a reality, whether that’s in five years or 50.
For example, your financial advisor can help you determine the right college savings plan for your family or create a distribution plan for your retirement savings. Our financial advisors at Farm Bureau Financial Services can help you develop a personalized financial plan with your specific goals in mind. Get in touch today!