Financial Advice for the 99 Percent

                                                                    

If doesn’t matter if you make $20,000 or $2,000,000 a year, everyone needs help with managing their money and meeting their financial goals.  You can use self-help resources such as books, television shows, seminars or courses but you may reach a point where you need additional help, that’s when a financial advisor comes in handy. If you do not have a financial advisor you should consider hiring one as your income increases, lifestyle changes occur such as marriage and children and assets increase such as purchasing a home, investment property or starting a business.

Financial advisors help clients reach their financial goals including retirement, paying for college education or starting a business.  Some financial advisors can also assist with creating a budget or spending plan, paying down debt, choosing investments, managing their finances, taxes, savings and wealth management. Financial advisors are not just for the wealthy. Financial advisors help clients at all income levels.  Shop around to find the right one for you.

There are two types of financial advisors:  fee-only and commission-based.  Fee-only advisors charge a fee for their services usually $150-$300 an hour or per session or may charge a fee based on the annual percentage of assets that are managed. Fees should be disclosed up-front. Fee-only advisors offer unbiased advice because they are not motivated or required to sell products and services to get paid.

Commission-based advisors receive a commission by fund companies or brokerages for the sale of financial products and services and receive a percentage of the total amount clients invest in specific products.  Commission-based advisers receive a percentage of the total number of transactions a client makes and may charge 0.5% - 2% of the assets they manage for each client. Commission based advisors are more concerned with their own career needs than their clients’ needs because they are motivated or required to sell products and services to get paid.

A financial advisor can:  help you generate more money for you and your family, help you to be better prepared for changes in your life, provide protection against mistakes and unexpected circumstances, provide stability and peace of mind by ensuring your financial goals are met, save time, provide guidance on retirement and investment options, decrease your tax liability, determine insurance needs, and analyze risks. Here are 23 reasons to hire a financial advisor:

1. You heard about a financial product or service that you think may be a good choice for you.
2. You want a second opinion on a financial matter.
3. You don’t have any debt or financial issues and don’t feel you need any help or that you know everything you need to know about finances.
4. You want to or are currently saving for retirement.
5. You want to retire early, start a business or do volunteer work in another country.
6. You want to setup investment accounts to fund college education.
7. You have personal financial obligations to family members or others.
8. You want to learn how to track spending.
9. You need help to create and meet financial goals.
10. You want to address credit issues.
11. You want to develop good spending habits.
12. You want to organize your finances.
13. To help you save money on fees, interest, etc.
14. To help you earn more money for savings and retirement accounts.
15. You want to analyze your insurance needs.
16. You want to achieve financial goals.
17. You have a lump sum of money to invest.
18. You want to create generational wealth.
19. If you are getting married or getting a divorce.
20. You experienced a financial crisis.
21. You want to buy or sell a home or investment property.
22. Death of a spouse.
23. You want to donate a large sum to charity.