Many people have a personal lawyer, a personal doctor (or at least a ‘chemist’ they trust) but just too few people have financial advisors. The reason is not far-fetched, a lot of individuals believe strongly that they are gurus when it comes to financial planning and as such; they have no need for the services of a financial advisor. This belief is not true as the role of financial advisors cannot be overemphasized. Having a financial advisor can save you from a lot of financial messes.
A financial advisor is a professional who offers financial advisory services to clients. Financial advisors can be likened to a medical doctor in the sense that he/she runs clients financial check-up, diagnosis clients’ financial ailments and prescribes financial medications or solutions in a bid to cure or prevent further occurrence of such financial ailment. In spite of the similarity, a financial advisor is different from a medical doctor in that if a doctor makes mistake, a patient dies but if a financial advisor makes mistake there may be collapse of economy at individual, corporate and even at national and global levels. Highlighted below are seven reasons you need a financial advisor as an individual or corporate organization.
1. Sound financial judgments
A financial advisor as a licensed professional offers advice to clients through frequent communication in a bid to build long-term mutually beneficial relationship. Such advices are confidential and it guides clients from making financial mistakes.
2. A financial advisor educates
By engaging the services of a financial advisor, you stand the chance of becoming more knowledgeable. A financial advisor constantly researches, as such, he is privy of all financial information and such information are disclosed to clients which in turn make them better-educated people financially.
3. A financial advisor helps you plan
As an investor, you need a financial advisor in the sense that a financial advisor possesses planning capabilities and will provide you a financial template for building, managing and protecting your financial assets.
4. Portfolio management
In the area of portfolio management, you need someone who can help you grow, diversify and coordinate as well as manage your asset portfolio. Furthermore, you need a research analyst, equity trading guru and fixed income trader to assist you. A financial advisor does all these.
5. Coordination of family finances
In coordinating and planning your spouse, children, and unborn generation’s financial life, you need the services of a financial advisor. Also, a financial advisor is needed in your collaboration with other advisors like Lawyers and Accountants.
6. Loan advice
If you are a businessman and you are in need of a facility or loan from a bank, you need a financial advisor to offer you guide as to the type of loan to take in the bank, preparation of cash flow analysis and interpretation of terms contained in the loan offer and agreement.
7. Starting up a business
As a person who intend to start a business, you need the services of a financial advisor to offer you advice in the areas of strengths and weaknesses, opportunities and threats of the business as well as in preparation of the business’s feasibility study.