Did you know that more than one-third of all United States adults report that their lack of financial literacy cost them at least $500 in 2022?
Those who do not know how to manage their finances might find themselves in a tricky spot. They will need to navigate the waters of financial management without basic navigational skills.
But here’s a fact: having a certified financial advisor can dramatically shift these odds in your favor. With a certified financial advisor at your side, you gain a personal guide who can provide vital assistance every step of the way.
To make things easier for you, we’ve written a guide that breaks down the top reasons for hiring a certified financial advisor. Keep reading to find out more.
Table of Contents
Plan for Your Retirement
It’s never too early to think about your golden years. With the help of a certified financial advisor, planning for retirement becomes less of a challenge.
They can guide you in managing your retirement savings and making smart decisions based on your lifestyle and income goals.
For example, if you’re part of the Oracle employee benefits program, your financial advisor can help optimize those benefits. This will help you to enhance your retirement savings.
They can also provide guidance on 401(k) allocations and Individual Retirement Accounts (IRAs). This will give you peace of mind in knowing that you’ll have the means to enjoy your retirement comfortably.
Prepare for Unexpected Situations
Life is full of surprises. Some are pleasant, like a surprise birthday party or winning a small lottery. But others, like sudden health issues, loss of job, or major repairs at home, can wreak havoc on your finances.
That’s where financial planning comes in. Your financial advisor can help you create an emergency fund for such unforeseen situations.
They guide you to set aside enough money that would cover three to six months of living expenses. This preparedness can make all the difference, offering peace of mind knowing you’re covered no matter what.
Provides Emotional Guardrails
Financial decisions can be stressful, and emotions can sometimes get the best of us.
A certified financial advisor can serve as an emotional guardrail. This will prevent you from making impulsive, emotion-driven financial decisions.
They help you maintain perspective during market volatility. They will also guide you to stay focused on long-term financial goals. This balanced approach can greatly reduce financial stress.
Avoid Excessive Taxes
Taxes are a reality of life, but with careful financial planning, you can minimize your tax burden. Financial advisors are well-versed in tax laws and strategies to reduce tax liabilities.
They can help structure your investments and income to take full advantage of tax benefits and deductions. This could mean more money in your pocket or more funds available for your financial goals.
Encourages Physical and Financial Wellness
Believe it or not, your physical health and financial health are intertwined. Financial stress can lead to health issues like sleep disorders, anxiety, and even heart disease.
A great advisor will teach you how to manage your finances confidently. This will reduce stress and promote better physical health. Plus, they’ll encourage good financial habits that contribute to overall financial wellness.
Design a Long-Term Financial Strategy
Everyone’s financial situation is unique, and your financial plan should be, too. Certified financial advisors spend time understanding your individual financial goals. risk tolerance, and life circumstances.
They then design a personalized financial strategy, custom-made to suit your needs. This might involve budgeting and planning for your child’s education, or saving for that dream vacation.
Reduce Unnecessary Stress
Managing finances can often feel like a juggling act. This is especially the case when you’re dealing with things like taxes and investments. It can lead to unnecessary stress and sleepless nights.
This is where a certified financial advisor, sometimes referred to as a wealth manager, steps in. They help streamline your finances. This could involve suggesting the right moves at the right times.
Emotional Distance from Investments
Investing is not for the faint of heart. It involves a rollercoaster of highs and lows which can trigger strong emotional responses. A financial advisor will help you maintain emotional distance from your investments.
They’ll guide you to make rational, informed decisions, helping you to avoid panic-driven actions during market downturns and overexcitement during market peaks.
If you’re struggling with debt, a financial advisor can be your ally. They assist you in managing your liabilities, providing guidance on efficient ways to pay off debt, and strategies to avoid falling into debt traps in the future.
By helping you prioritize your debts, from high-interest credit cards to student loans, they can set you on a path toward financial freedom.
Embrace a Teamwork Approach
Financial management isn’t a solo endeavor. With a financial advisor, you embrace a teamwork approach. They work with you, understanding your financial goals and needs.
They’re there to answer your questions, explain complex financial matters, and ensure your financial plans are aligned with your life’s goals. In essence, they become a trusted partner in your journey towards financial well-being.
Hire a Certified Financial Advisor Today
There are many great reasons why you should consider hiring a certified financial advisor.
Not only are they skilled at helping their clients prepare for retirement. They can also offer you guidance on how to avoid paying unnecessary taxes. Lastly, they are great debt control strategists.
Do you want to find out more about the many benefits of working with a financial advisor? If so, make sure to check out the Business section of our website.