Some people are financial wizards. They’re able not just to make money but also to invest it wisely. They understand how the stock market works, and they’re able to develop and utilize wealth-gaining strategies.
However, most people can’t develop such strategies on their own. Financial matters confuse many individuals, which is why financial planners exist. You can contact one through a bank or credit union, or you can find one who’s operating independently.
Whichever one of these you pick, you’ll likely need a financial planner at some point. They can help you in different ways as your life progresses. Let’s look at some of those ways right now.
They Can Help with Your Short-Term Goals
One way that a financial planner can help you during your life is with short-term investment planning services. Maybe you want to do something like:
- Buy a new car
- Move from a tiny apartment into a larger one
These goals are attainable, and most people can do them within a couple of years if they set their minds to it, and then they get some help. You could call these short-term goals since they’re probably things you won’t wait ten or twenty years to do.
A financial planner could sit down with you and talk about your income, various revenue streams, and what savings or investments you already have. Together, you can figure out how to leverage all that to get you that new vehicle, move you into that new apartment, etc.
They Can Help You with Long-Term Goals
Financial planners can also help you develop long-term monetary strategies. You might talk about what you’d like to do in the future. Maybe you want to:
- Retire in twenty years
- Move across the country once your kids are out of the house
If you have something in mind for ten, twenty, or thirty years from now, that’s a long-term goal. A financial planner can help you out in this area as well.
They might suggest you diversify your portfolio, using tools such as an IRA or 401K. They may tell you to invest in stocks, bonds, mutual funds, CDs, or some combination of those things.
If you’re not familiar with some or all of these monetary tools, they can explain to you in simple English what they are. They might seem confusing at first, but the best financial planners can break them down so a layperson can understand them.
They Can Steer You Away from Bad Investments
Maybe you’ve heard about a moneymaking opportunity. Perhaps it’s something like a stock that’s about to take off. Maybe your brother-in-law has a real estate deal they say can’t fail.
These might sound to you like attractive prospects, but it’s hard to say for sure. Rather than sinking all your money into such a venture without doing your due diligence, you can talk to your financial advisor about them.
In some ways, a financial advisor is like a lawyer. Just as a lawyer can tell you whether you’re on shaky legal ground, a financial advisor can look at an investment opportunity before you plunge into it.
Ultimately, the choice is yours what you do with your money, but they can usually sniff a bad deal out. They can tell you why it’s wise to avoid it and why you should invest your money elsewhere.
They Can Help You Establish Your Timeline
You may have some ideas about what you want to do both in the short and long-term. Maybe you’re looking at things like homeownership, sending the kids to college, retirement, etc.
Most people want to do those things, but when it comes to crunching the numbers, it seems like too gargantuan of a task. With your financial advisor by your side, it becomes more manageable.
They can talk about safety with you. You want to move toward your goals while still maintaining enough money to live on in the present.
They can talk to you about both active income and growth. That means having the liquidity to pay rent or mortgage payments, have a food budget, pay for utilities, etc., while still saving enough for your future plans.
With your financial advisor, you can figure out how risk-averse you are and what your investment style is. You might not have realized that different people have various investing styles, but they do.
With a trusted financial advisor, you can decode the investing world and eventually get to where you want to be.