One important fact everyone should understand, whether they’re just beginning their career or nearing its end, is that the financial advice you follow and the actions you take with your money today will impact your long-term financial future.
It takes time to compound and grow wealth, and no matter how long you think you have left, you will never again be as young as you are today.
This means that starting today is always the best approach.
Yet, some people put off saving and investing because they feel like they do not know enough about the subject.
Others know plenty but may be paralysed with indecision.
This is where financial planners enter the picture.
This short guide will explain what they do and how they can help you plan your financial future.
What do financial planners do?
Financial planners, like financial advisers, are qualified professionals who help individuals or businesses meet their financial goals.
The difference between the two is that the role of a financial planner is limited to creating strategies to achieve long-term financial goals.
Meanwhile, an adviser might also act in other roles such as a broker, insurance agent, or money manager.
To help you, both will need to get to know you and your money habits well.
They will learn about your income, expenses, and spending and saving habits.
Then they will offer advice to help with your goals over different time frames.
This can range from offering personal finance tips to help you cut spending in the short term, to how to save for your retirement.
Benefits of speaking to a financial planner
There are an overwhelming number of financial products that promise you a secure future, but risks and even fraud lurk around every corner.
Speaking to a qualified professional who understands them well can help you make better decisions.
Some of the other benefits of speaking to a financial planner include:
1. Better Planning for Retirement
By the time you retire, you’ll want to maintain a certain lifestyle, but estimating how much money you’ll need can be challenging.
A financial planner, equipped with money management skills, can help by using data to forecast the income required and creating a strategy to ensure you reach your goals.
2. Avoid Unnecessary Taxes
Financial planners can help you become more tax-efficient.
They can also advise on issues like the taxes you might have to pay if you retire in a different country.
3. Securing your Finances
Financial planners can help advise you on topics such as life insurance.
This is to ensure the financial future of your loved ones is secure if anything happens to you.
4. Better Investment Decisions
Financial planners not only know the benefits and risks of various assets but also evaluate the factors to consider when making investment decisions.
They understand your risk tolerance and design a strategy tailored to it.
5. Save Time
They do the hard and often boring work for you, leaving you time to focus on other things.
Final Words on the Benefits of Seeking Professional Financial Advice
If you do decide to seek financial advice, speak to a financial planner or adviser, make sure they are registered or licensed to advise your country.
