Disadvantages of Not Consulting a Financial Advisor

Every Individual has a life goal. You too must be having one or more life goals. These goals may be planning a big fat wedding for your child, building your dream house, sending your child to a foreign university, a world tour or managing finances for your future golden years.

But, how do you achieve these goals?

You can achieve your life goals by developing some strategies which will manage your financial affairs. Developing these strategies is known as financial planning and the first step to financial planning is access to right advice.

Many individuals do not feel the need for any advice, because either they have too much confidence in themselves or they think a lot of financial advice is available on the net and print media. Others trust the advice of their relatives and friends.

Financial Planner consultation is, howbeit, a must if you want peace of mind and make your financial future secure. So, how does a financial planner assist his client?

1. Advisor establishes a strong relationship with his Client.

2. Gathers all your financial data and does deep analysis.

3. Develops and presents a Financial Plan that is apt as per your requirement and goals.

4. Assists you in the implementation of the plan.

5. Monitors and review the Investments as well as the plans.

If you take your own investment decision, I am sure you will be skipping most of these steps. You will simply conclude on an investment decision. This decision may not be rational in nature and finally, you will land yourselves in soup.

An advisor, on the other hand, help you know a big picture of yourselves so that you can work out on your current situation, know your future needs, find out the most efficient way to reach your future goals.

The biggest advantage of consulting a financial advisor is ‘rational ‘and ‘scientific’ decisions making. Financial Planner’s assistance will help you solve the intricacies of investments decisions. They will also help you work on other areas of your finances; like investing in a particular product may help you pay off your loans faster.

If you feel you are confused over whether consulting a Financial advisor is right or not, ask these questions to yourself:-

1. Am I qualified and experienced enough to choose the best investment option?

2. Am I ready to bear the risk of inadvertently investing in wrong investment avenues?

3. Can I do all the homework before investing, all by myself?

4. Can I assess my risk appetite all by myself and take decisions accordingly?

5. Do I have enough time to monitor my investments?

Most of us will answer in negative. This is why consulting a Financial Advisor is highly recommended.

Time management is another major concern of investors. Investors fear the risk of losing money if investment transactions are not properly timed. They don’t know what to do if the market crashes, funds under-perform or there is a political turmoil.

Whatever be the problem, a financial advisor is a one-stop solution!

Your advisor will review your portfolio in any exigency and give you judicious advice based on his or her broader, deeper knowledge of money and tax management.

Not consulting a Financial Advisor has a serious opportunity cost. You may inadvertently invest your money in investment avenues that is not suitable for you. This will seriously affect your ability to achieve your financial goals apart from losing lots of money.

Additionally, managing finances is highly stressful these days and therefore there is a need for a professional who will assist you with a financial plan that suits your needs. Consumers with a Financial Advisor and a plan are more confident than others. This makes financial advisor an indispensable part of your financial journey.