Financial Fitness


Do you need a financial advisor?

Margaret, a 29-year-old journalist, has never considered getting a financial advisor because “they are not for me. I think they’re only interested in rich people.” Besides, she adds, how do you know if you can trust them? “Money is a hard topic for me to talk about. How can I rely on a stranger to help me invest the little that I have? I also think I can plan my money at this stage of my life.”

Maybe, like Margaret, you’ve never considered getting a financial planner because of your attitude towards money and have an aversion towards money professionals. Like Margaret puts it, “How do I know a financial advisor has my best interests at heart?” If you have the same concerns, you are not alone. Research shows that people don’t work with financial advisors because they consider them expensive or think they are not wealthy enough to warrant one. Others don’t downright trust them. Others, like Margaret, prefer planning their money themselves. Technology has made it so much easier for us to get information that we wouldn’t have at a different time. However, there are situations that call for outside help.

Do You Need Help?

A lot of factors will influence whether you need an advisor or not, such as your goals, assets and your understanding of financial products you’re looking to invest in. Usually, financial advisors help matching you with the right financial products that will help you grow your wealth.

According to experts, if your goal is to save and budget your income (looking at you, millennials), you don’t necessarily need an advisor because these aspects are fairly easy to grasp and are more straightforward. However, the difficulty may come when it comes to investing your assets. There are so many products out there, and they are not so easy to understand. An advisor can help comb out the best ones for you, explaining the risks and the small print, and they can even get you better deals. In a nutshell, if it is something too hard for you to understand, you may benefit from professional help.

I Am Not Wealthy Enough for A Financial Advisor

Margaret, might have technically been right when said that she is not “rich” enough for a planner because the more assets or money you have to invest, the more investment options you have at your disposal, and the more confusing it can be. At this point, you might need an advisor (as mentioned earlier, the harder is it to decipher the various products, the more you might need help).  However, it is also a good idea to get an advisor at critical life moments that come with new financial obligations. These include getting married and starting a family.  Also, if retirement is on the horizon and you’re not ready for it financially and don’t understand the options you have, it might be a wise idea to get an advisor.

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