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What is the benefit of working with a financial advisor?
Everyone could use some direction and advice when it comes to their financial affairs. The days when our parents and grandparents retired on company pensions and social security are no longer here for many of us who live in high cost metropolitan areas. We are increasingly responsible for our own retirement nest egg, which on the surface is a very daunting prospect. Many of us also face the challenge of educating our children, taking care of aging parents, AND having enough money leftover for an enjoyable retiremen...
The internet has made information readily accessible. Your advisor is no longer “an insider” privy to any “hot tips” or ideas which are not already public.
However the sheer amount information is hard to digest and sort. Advisor’s experience and knowledge of your background should serve as a filter, separating noise from signal and distilling only the timeliest information which is useful and relevant to you personally.
You should work with advisor for the same reason you buy your coffee at a coffee shop, instead f growing, harvesti...
If discipline is destiny (and in personal finance, it's certainly a big piece), an advisor can be the discipline in the picture. For example, an advisor will recognize a need for 'taking a flyer' and suggest you put a small amount aside (that won't impact wealth) so you can practice investing on your own. An advisor will recognize your need to pay off your home and even if mathematically it makes more sense to leverage it, they will understand your need to have it paid for.
In a nutshell, your advisor is your guide, ...
A good financial advisor brings to the table both experience and perspective.
Experience - I've devoted over 2000 hours a year for 10 years to understanding, analyzing and managing personal finance issues. Compare that to what you can devote to the cause on top of your day job, family and life commitments.
Perspective - Our brains are not wired particularly well to make great financial decisions. Emotions drive more than 90% of your choices and they tend to cloud your better judgement. An advisor isn't as emotionally entangled in ...
Have a question about finance?
- Should I get an apartment with all costs?
- Does it make financial sense to lease a car if I'm paying more than it's worth?
- Should I quit my full-time job in order to pursue more flexible employment options?
- How should I proceed with trading in an essentially new car for a cheaper one?
- How do I start budgeting my expenses as I head into college?
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