Did you know 75 percent of Americans don’t have any meaningful financial plans? They’re just winging it!
If you’re one of these people, it’s unlikely that you’re comfortable with your financial situation. Like most Americans, you want to achieve financial freedom and even get ultra-wealthy.
What are you doing to achieve this? Perhaps you’ve tried drawing a budget and nurturing a habit of saving money. Maybe you’re even considering getting professional advice and when you ask around, you’re being told to find a financial advisor.
But what is a financial advisor and can they really help you meet your financial goals? Read on to find out!
Financial Advisors Give Financial Advice
You can quickly tell what this professional does. Their name is an easy giveaway.
Financial advisors provide financial advice to individuals. The nature of the advice varies depending on the needs of the individual but broadly speaking, they’ll help you make sense of your financial situation.
Perhaps you’ve just started earning an income and want to spend it. A financial advisor will help your draw a budget that suits your needs. You’ll have a good idea of how much of your income you should be spending on living expenses such as housing and food. You’ll know how much money you should be putting away for a rainy day and whatnot.
Debt Management Services
The average American adult has student debt, an auto loan, a mortgage, and credit card debt. If you’re not diligent, you can find yourself buried in a heap of debt. In fact, millions of Americans are struggling to stay on top of their debt payments.
If you’re in this situation and wondering whether a financial advisor can help you, you’re on the right path. Financial advisors offer debt management services. They’ll assess your debt situation and help create repayment plans that work. They’ll advise you on various debt management strategies.
Do you need help investing your money? If yes, a financial advisor is the professional you’re looking for.
Making profitable investments isn’t a walk in the park. You could lose all your investment capital if you make bad investment decisions.
A financial advisor will help you create an investment strategy. You stand a good chance of making profitable investments when you have an advisor on your team.
Are There Different Types of Financial Advisors?
Although all financial advisors have a strong academic background in finance, most choose to specialize in different areas.
The common types of financial advisors include investment advisors, certified financial planners, financial coaches, financial consultants, wealth advisors, and robo-advisors.
These advisors can also be categorized depending on whether they’re fee-only or charge a commission.
As advisorwealthmastery.com notes, there’s competition for clients among financial advisors, and some turn to marketing specialists to help them get more clients. When you’re looking for one, ensure they’re properly qualified and licensed.
What Is a Financial Advisor? Now You Know
So, what is a financial advisor?
In a nutshell, this is a professional who dispenses financial advice to clients. They typically have a bachelor’s degree in finance and, depending on the specific service they want to offer, might need to obtain an occupational license. Keep tabs on our blog for more informative financial articles.