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Top 5 reasons to hire a financial advisor

Posted by  Sjoerd-Jaap Westra

Balancing and planning your finances is always a difficult task. This is something that can be made easier with the help of a qualified financial advisor. Below are five reasons you should consider hiring one.

1. Determine your personal financial status

Your financial status is based on factors such as your net worth and your FICO score, along with other assets and liabilities. Are you in debt, or do you have a savings reserve? Do you have sufficient insurance? A financial advisor can help you review your monetary standing and see where you could make improvements so that you are not caught off guard in an emergency.

2. Determine a budget you can live with

What are you bringing in each month in income, and what are you spending? Are you in debt, or do have you disposable income left after every paycheck? Saving money for when tough times arise is critical. A financial advisor can help you develop a budget that is feasible for your lifestyle and give you tips to stay on track.

3. Find investments to increase your wealth

Investments can be a great way to bolster your financial status; however, if you aren't aware of the ups and downs of the stock market, you can lose money very easily. A financial advisor knows how to navigate the various exchanges like the NYSE, NASDAQ, S&P and others. He or she can help you improve your solvency by creating a sound, personalized investment strategy.

4. Plan a financial strategy to provide for your family

Many families have expenses such as college tuition for the kids, doctor's bills and car payments. It can be overwhelming when bills arrive, and most parents want to be able to plan financially for their children once they are gone. Estate planning will help your children side-step certain taxes and probate costs when dealing with your will. Financial advisors are familiar with these potential monetary landmines and can help you plan accordingly.

5. Plan a retirement strategy

Because there are always unexpected expenses, most people are not confident that their retirement funds will be enough to live on, especially since the recession. Any saved income was more than likely used to cover expenses during a period of unemployment or reduced income. A financial advisor will help to alleviate any worries you might have and get you on your path to post-work stability.

Finding a qualified financial advisor will take some legwork, but will ultimately help you become more financially solvent and secure.

What about the competition?

These 5 reasons also apply to your competitors, so you should be more efficient. If you want to learn more about strategies for accounting firms read: 5 effective ways to deal with new competitors in the accounting sector.

Sjoerd-Jaap Westra

Sjoerd-Jaap Westra

Within global product marketing of Unit4, Sjoerd-Jaap is responsible for the 'Office of the CFO' suite. This suite contains best-in-class solutions for financial management, planning & control management, and corporate performance management.

 

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