You may think you don’t need a financial advisor or that they can only help other people. However, a financial advisor’s professional advice can be a great help when you are saving for the future.
1. Getting Married or Having a Child
Getting married and having your first child are big transitions in your life. Besides the extra commitment and lifestyle changes, you will need to consider the financial implications. They can include whether you and your partner have shared finances, how this is worked out; or if having your first child, budgeting for everyday items and unexpected purchases you may need to make. That can help to avoid unnecessary disagreements later on.
A financial advisor can help you create a plan for budgeting, sharing incomes and preparing for unexpected emergencies, such as writing a Will in case the worst happens, or saving money for your child’s future. There is so much that a financial advisor can guide you about – things that you may not have considered.
2. Help You Get the Most From Savings
If you’re able to save money for the future, you want to make sure not only that it’s secure, but also that it accumulates interest. There are so many options available, it can be difficult navigating yourself around the metaphorical minefield of savings accounts, stocks, shares and interest rates. While stocks and shares can be riskier, savings accounts are more secure but have low interest rates at present. ISAs have slightly better rates but have to be in place for a minimum length of time before you can get the full return.
A financial advisor can give your more in-depth details on any potential risks, the best savings accounts and ISAs for the length of time you want to save, and help you get the most from your money until you need it.
They can also show you to prevent identity theft, which can be a problem when accessing accounts online. There is a wealth of information online, from articles to books such as What’s the Deal With Identity Theft? by Robert M. Ryerson, who also regularly writes financial articles on Medium.
However, personalized advice is always recommended, as everyone’s financial situation differs.
3. If You Want to Invest, But Don’t Know How
In addition to savings, you might want to focus more on investing in stocks and shares. An advisor can give you informed advice on where to start or on the best way to use your money to start a new business.
They can go through your finances and help you determine the best option for you. Also, they will have knowledge of financial services that you’re not aware of and know which ones to avoid. While there is no such thing as 100% risk free when investing money, they can improve your chances of success and reduce the risks.
4. When Choosing Insurance or a Mortgage
Getting the right mortgage can be challenging. While there are several websites which allow you to compare mortgages, it’s difficult to know which one is right for your personal circumstances. The process of understanding each one can be time consuming. Your time can be valuable and so the cost of getting professional advice can be a better option for many people. A financial advisor can walk you through the process and help you explore your options.
A professional advisor can also help with insurance advice when you are trying to plan for a future with family responsibilities. It’s impossible to know whether you will lose your job, become ill or be unable to support your family. By helping you think carefully about what you might need if any of these things happen, an advisor can help you to secure insurance cover at the best rates. Life or health insurance are never easy topics to think about, but once you’ve being led through the options and chosen what is right for you and your family, this can take away some of the worry and uncertainty that we all face.
5. Offering Advice on Pensions
Planning for the future is important, no matter what your age. In fact, the sooner you start thinking about your pension the better. An advisor can guide you through the options and help you determine whether you need to consider a private pension, or if your company pension is enough.
Planning for retirement can decrease the uncertainty of your future, and getting professional advice can give you peace of mind that you’ve chosen the best option.
6. To Help You Save More Money
There are many other ways a financial advisor can help you save money. These include advising you on tax issues to ensure you’re not paying more than you need to or offering personalized advice on any inheritance you are set to receive.
Although paying a professional might seem costly, you can potentially save more money than you pay out. It also means you don’t need to have a complex understanding of financial issues to make the best of your finances.