Most people don’t enlist the help of a financial advisor, instead attempting to plan for their future on their own. While this may help you save on the cost of paying a professional’s service fee, it may harm your finances in other ways.
Think of a Financial Advisor as a Personal Trainer for Your Wallet
Just as a fitness instructor can help you get the most out of your physical exercises, a financial advisor can coach you on the best moves to make for your finances. Even if you think you’re doing fine by making your own investment choices, research has shown that the advice offered by a professional advisor can give your yearly returns a 3% boost. This is because a financial expert knows the best way to reallocate your investments to bring greater balance to your portfolio. they also have the insight to know when it’s better to hold onto your investments in stormy financial waters.
Taking a look at this analogy another way, the fitness trainer helps you to live an overall healthier life, suggesting dietary and other changes. In the same way that this can help you reduce your risk of disease, a financial planner can help you protect your financial health. Having years of experience, the financial advisor knows the best options for your situation. Just as it’s wiser to work with a fitness trainer for your physical health, hiring a financial advisor can help you protect your finances.
What Does a Financial Advisor Cost?
In fact, the cost of hiring a financial advisor isn’t that much different than the cost of joining a gym, where you would work with a fitness coach. In numerical terms, you’ll typically pay out 1% of your savings to gain the financial advice that will earn you the additional 3% in returns each year. This means your still bringing in 2% more than you would, if you were to continue investing on your own.
If you’re still unsure, consider the fact that even financial advisors hire financial advisors. Throughout the finance sector, professionals hire their own advisors to ensure they’re making the best decisions for their investments. If the professionals see the wisdom in working with a professional, shouldn’t you? Working with a knowledgeable advisor can help you maximize your returns and help you learn more about investments, so you’ll no longer be stumbling in the dark.