Top 5 Ways Financial Advisors Can Help Improve Your Finances

Top 5 Ways Financial Advisors Can Help Improve Your Finances

Since the collapse of the market in 2020, the demand for financial advice has increased. They found 62% believe their financial planning needs improvement according to the Northwestern Mutual Planning & Progress study.

About 35% of Americans sought the guidance of a financial advisor, and nearly one in five said they either have started working with a financial advisor or plan to do so in the aftermath of the pandemic.

A Natixis Investment Managers survey found that 72% of millennials in North America have at least $100,000 invested in a financial advisor. Moreover, 66% of people are not aware of the use of AI-powered digital platforms.

You can try out this free quiz and you will find up to three vetted financial advisors who serve your area.

Let’s examine five ways financial advisors could help improve your finances.

1. Financial Advisors Can Help Navigate the New Normal

The world economy is at a tipping point, with fears of a prolonged recession looming amid Europe’s energy crisis, the high cost of living and frequent interest rate hikes. Market movements can be unpredictable at this time and continue to show signs of bearishness.

Those are new patterns that have forced Americans to look at their finances. Expenditure-induced job losses, fast-rising household and personal debt, rising investment risks and income fluctuations have led individuals to seek financial empowerment through trusted advice.

Some people are working with advisors to protect their assets from market pressure. Advisors can help investors stay on track and ride the markets during these difficult times.

2. Financial Advisors Can Help Prevent Emotional Investment Decisions

Market losses are an ordeal that people must overcome. Investors, often, act on impulse in order to protect their wealth, guided by emotional instincts, in trying to prevent losses. With billions of dollars lost in personal money mismanagement since the start of the new decade, it may be up to investors to work with a financial advisor who could be a sounding board for critical investment decisions.

Financial advisors must follow fiduciary standards, so that they do not use behavioral finance and counseling. They can help identify emotional patterns associated with your spending, debt, investments and market trades to keep on top of volatile situations.

Most accountants know you are very happy at your retirement age and there is a low risk for retirement, as well as income and liability.

3. Financial Advisors Could Help With Your Specific Financial Needs

A financial advisor includes money managers with a broad range of specializations. Depending on what part of your financial life you need help with you may need a wealth manager for managing high-value assets.

It is crucial to be clear about your goals and financial aspirations when considering a financial advisor. A 2021 SmartAsset financial advisor survey found that 70% of advisors say most clients seek retirement planning advice.

4. Financial Advisors Can Be Better Equipped to Handle Life Events Than Robo-advisors

Automated robo-advisors can organize your financial accounts and recommend trades based on the inputs from your investment profile for a low fee. New and seasoned investors can setup, manage and customize stock portfolios, retirement accounts and monthly budgets for AI-based insights that try to predict the best financial outcomes for different situations.

A poll of 300 wealth management clients found that the top reason for switching an advisor in the past ten years was high fees. Forbes reports that the average human advisor fee was 1% of assets under management or $2,318 for a complete financial plan, compared to between 0.25% and 0.50% for robo-advisors.

A financial advisor could help you financially prepare for life situations like starting a family, getting a mortgage and going through a divorce. The average client-advisor relationship often lasts more than 10 years according to the Qualtrics survey.

5. Financial Advisors Can Regularly Monitor Your Portfolio

Fiduciary financial advisors look at a business roadmap to make wise decisions.

The financial advisers should take care of financial choices you have made over the years. Advisors can help you avoid further damage by designing a debt repayment plan to lower your liabilities earlier than you think that is possible.

Advisors monitor portfolio movements and send regular updates on changes. Goals and progress can be monitored via phone or in-person catch-ups.

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