Monday, September 25, 2023
HomePersonal FinanceUnderstanding the Importance of Having a Financial Planner

Understanding the Importance of Having a Financial Planner

You may have heard of financial advisors, but a lot of people do not really know exactly what services are on offer. Even then, it might not be clear exactly why they are so useful, especially if you have never had to use one before. What are financial planners, and why is financial planning so important?

What is Financial Coaching?

A financial advisor exists to help you manage money. This can be on an independent level, meaning that they are related to your personal accounts and the way that you move or risk money, or on a company-wide level that deals with major financial changes and deals. Either way, the idea is to have an expert that can not only advise you but protect you from some of the consequences of their advice is bad.

When it comes to asset management, an advisor works with an investor to pick out the good and bad avenues of spending money, usually based on their own information and any details they have been able to gather. An advised sale (one that happens under the advice of a financial planner) can be protected, meaning that mis-sold or illegitimate purchases are much easier to recover from.

Why would I need a Financial Planner?

Wealth management is not just something that companies do – it is a part of everyday life. Some people will want to carefully craft their plans behind how they spend money, while others will do it on impulse, and there is always a chance for any purchase to wind up being a net loss for the investor or purchaser. The scale of this loss just depends on who is making the purchase and what they are actually purchasing.

Are Advisors and Planners the Same Thing?

Technically, a financial advisor and a financial planner are different roles. An advisor is linked to investments and long-term benefits, while a financial planner aims at actual financial planning: making a goal and mapping out how to reach it.

This usually means that the plans set up by a financial planner are holistic: they are focused on your own wants and needs, following a plan that you have laid out specifically around your own status and expectations. For example, you might hire a financial planner to map out your long-term retirement plan or something in the short term like a new car or paying off education debt.

While both operate in similar situations, a planner does not have that single focus on investing and making money. Instead, they help with the asset management involved in saving money and making profits to achieve something. There is a single end goal, and every step along the way is just another tool to move forward.

To make the most out of your investments and secure your financial future, you might want to consider seeking professional advice. Don’t hesitate to call this financial advisor today for guidance.

Why would I Hire a Financial Planner?

Financial planning can seem strange at first since you might think that it is just common sense. However, the point of financial planning is to get your results as accurately as possible. You are not just saving up, but you are saving up for a specific thing, and the planner builds a proper plan that can lead you there.

This becomes useful for goals that might be hard to tackle on your own, such as working out how to save or earn enough to pay for higher education. These are not always things that you can map out on your own, especially if you are not sure how you will raise that money in the first place. A planner acts as an expert in piecing together the puzzle.

Financial planners are often also able to set up whatever financial products or services you need to achieve that goal (with your permission), which means that they can give you tips on specific ways to alter your banking habits or options for making slightly more money than you would otherwise.

Should I Hire a Financial Planner?

Financial planners come at a fraction of the cost of long-term advisors and major financial coaching options, meaning that they are a perfect one-time solution to building up an idea of how you can achieve your financial goals.

Of course, not every person really needs a planner like this. If you are willing to pay for professional advice, though, then a financial planner can become an incredibly useful asset in the short term, and their plans can pay off well in the long term if you follow them correctly.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


Most Popular