A financial advisor can help you with your overall finances, or they can specialize in areas like insurance and investments. They’ll also help you plan for your retirement.
Generally, people choose to Harvest Asset Group consult with an advisor when there’s a significant life change or they’re feeling overwhelmed by their money. The reasons are varied, but they usually involve increased financial complexity or lack of time or investment expertise.
1. They Help You Keep Up With Changes
When you work with a financial advisor, you’re working with someone who has extensive training and expertise. They can give you a bird’s eye view of your finances and spot weak spots that you may be blind to.
They can also help you keep up with changes to your life. For example, when you are planning for retirement or buying a house, they can help you make smart decisions that will benefit you financially in the future.
Financial advisors often charge a fee for their services, which can vary depending on how much time they spend helping you. Some may charge a flat fee, while others may charge commissions on investments.
2. They Help You Rebalance Your Investments
Keeping your portfolio on track with your investment goals and risk tolerance involves rebalancing regularly. This can be done by reviewing your portfolio at certain intervals (typically quarterly or annually), or it can be triggered by changes in the market that may cause your investments to veer from your original target.
As a general rule, rebalancing is a good idea whenever your asset allocation has shifted far from its original proportion. For example, let’s say that you started your portfolio with a 60% stocks and 40% bonds mix, but you ended up with an 80 percent stock percentage after a long run-up in the stock market.
3. They Help You Set Realistic Goals
Your financial goals are the specific monetary amounts you want to achieve that will help you realize your vision for your life.
A financial advisor can help you set realistic goals that are aligned with your long-term plans. They can use a SMART goal strategy to make sure your ambitions are Specific, Measurable, Achievable, Relevant and Timely.
The biggest long-term financial goal for most people is saving enough to retire comfortably.
You might also have mid-term financial goals, like putting down a deposit on a home, paying off a large student loan, stocking a child’s college fund, or taking a trip overseas.
The good news is that it’s usually possible to reach these ambitions with a little savvy planning and hard work. Your financial advisor can help you figure out the best way to save and invest money toward your goals and give you a roadmap that will keep you on track.
4. They Help You Find a Starting Point
A good financial advisor can help you find a solid financial footing. They can assist with estate planning, insurance policies and investments. The best ones will also make you feel confident in your financial future. The right advisor can even help you save money by helping you avoid common investment pitfalls.
The best part is that the majority of these professionals are highly trained and well paid. Choosing a financial planner may take time and effort, but there are plenty of options out there. The key is in deciding which one will be the best fit for you and your family. You’ll want to be sure the most important criteria are met, like making sure they have the appropriate credentials and are transparent with you about their compensation structure.
5. They Help You Make Smart Decisions
A financial advisor can help you make smart decisions regarding your finances, including planning for retirement, saving for college, managing debt and budgeting. They can also recommend investment strategies that are tailored to your goals and risk tolerance.
They can also provide guidance on a variety of issues, such as insurance coverage, estate planning and tax preparation. They can also consult with other professionals, such as a certified public accountant or an estate and tax attorney, to provide additional insight.
Advisors typically earn fees Financial Advisors Portland ME based on their clients’ assets. This can range from a flat fee to an annual percentage of assets under management. They may also earn commissions on the products they sell their clients.