WHY YOU NEED A FINANCIAL ADVISOR

By Kelvin Mkwawa, Seasoned Banker.

Not everyone needs a financial advisor. But regardless of your financial state, everyone can benefit from having a financial advisor in their life. 

Let me start by asking a fundamental question; how much can you improve your current financial situation? You might be thinking that since I pay my bills on time, know what my budget is and handle my finances pretty well, then I am good in my current financial situation. 

Right? Not Really. Many people think this way but often it is because of a lack of awareness of financial opportunities and best practices. In order to be aware, and take advantage of all the financial opportunities that are around us, we need someone to hold our hand and shows us the way. 

Whether you are a recent graduate trying to figure out how to handle student loans, a current professional worker, or a retiree looking to maximize your retirement account, or anything in between, we all want our money to work for us. 

Let's say you want to retire in 10 years or send your child to a private university in 5 years. To accomplish those goals, you may need a skilled professional with the right licenses to help make these plans a reality, and that’s where a financial advisor comes in.

By definition, a financial advisor is a person with knowledge about financial matters who provides expert advice in a way that promotes the well-being of an individual. 

Researchers have found that people have three big financial priorities in life: they want to be consumer debt-free, they want to have an emergency fund that will cover at least 6 months of their expenses, and lastly, they want to have enough money for their retirement. 

To achieve those priorities, you will probably need a financial advisor. 

A good financial advisor will help you set a plan to improve your financial health. 

To improve your current financial position/health, it might take time as it doesn’t happen overnight but trust me, you can improve it.

In this article, I will share a few reasons why you should find a financial advisor:

• Keep Your Financial Plan on Track: You might ask yourself these questions: how much money should I save for retirement at my current age? Should I change my financial plan as I get older? These questions may seem like complicated ones to you but to a financial advisor, they are not because of the financial knowledge he/she possesses. We all know it is not easy to stick to your budget and financial plan so having someone who guides you with a strategy to keep the plan intact is imperative. A study from John Hancock Financial Services Inc showed that 70% of those who work with a financial advisor are on track on their financial plan or ahead in saving for retirement, compared to just 33% of those who don’t use an advisor.

• Saves You Time and Stress: In today’s demanding world, do you think you can put in the hours of research needed to find the right balance for your investments or find the right information to decide which projects you need to invest in? Probably not. Instead of spending your time to learn extensively about different sophisticated financial products and strategies, you would rather spend it with your family and friends. This is where a financial advisor comes in and gives you a 360 degree view of your financial situation, spots weak areas and gives you educated opinions on making wise money move decisions. In addition, a financial advisor will undertake research on a regular basis to maximize their knowledge to ensure your investments/money are safe and growing. Furthermore, financial advisors are there to answer any questions and address all the financial concerns. 

In conclusion, we have seen the reasons why you should hire a financial advisor regardless of your current financial situation. Financial advisors often have a broader and deeper knowledge of money management than a normal regular person. Make a choice today to seek guidance if you are really serious about achieving your financial goals and take action now!

Written by Kelvin Mkwawa, MBA
Seasoned Banker
Email address: Kelvin.e.mkwawa@gmail.com