Choosing the best financial planner to partner with

Posted by Daniel Lawrence on April, 2016

Money management is a vital skill to learn, but so many people don’t seem to have mastered it. Many households don’t even keep a budget and have no idea of what they’re spending or how much they’d be able to save. They don’t negotiate with banks and so pay maximum credit when they could be paying less, and take credit terms when they could actually pay cash and could reduce their debt immediately. Lack of good financial planning can lead to stress and anxiety because you have no idea of how you’re going to meet short-term commitments, and long-term planning is something that barely registers on your consciousness. This is when you need to take back control of your financial affairs. Simply ignoring the inevitable – such as that you grow older every year and will eventually want to stop working – doesn’t change the facts, and you demonstrate maturity and responsibility when you start to take a careful look at money management and start making concrete plans for the future.

Consulting with a good financial advisor

You may understand about retirement annuities and health insurance, but beyond this there are words and financial terms that baffle you. Fortunately, if you find the right financial advisor, all this can be simplified for you. A good independent financial planner should be registered and licensed, giving you the assurance that they are trained in their field and can advise you safely, and invest your money wisely. It may be that your investment is not just for personal needs, but also that you have a business that you want to grow. Good financial advisors will take time to find out exactly what your needs are and will design a strategy that will fit your unique needs.

Finding the right investment strategy

Before any financial advice should be given, you would want a financial advisor to do a complete analysis of your current financial situation, and your goals for the future. They should look at what financial protection you already have in place, and would be able to see if there are gaps in your portfolio. For example, you may have children that you wish to send to college, and your advisor might recommend that you invest in a special college fund that will be perfect for your current family situation.

This is when you need to learn more about the financial instruments that are recommended to you. What you are looking for through investment is to obtain financial freedom, so you’d need to have the peace of mind that your advisor has fully understood your needs and has offered you the products that best fit your profile. It is recommended that you consult with an advisor who is independent as they will then be able to offer you products that are not just from their institution, but are truly tailor-made to fit your investment needs. Once you’ve made an investment, you would expect your advisor to continue to consult with you and to review your investment profile to ensure that it continues to deliver on your expectations.

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