Five Reasons You Need a Financial Advisor

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You’ve already worked hard to get your business off the ground and are now reaping the rewards of the long hours you put in, but there’s always that gnawing fear in the back of your mind that this success may not last forever and your family will be left without any source of income if something happens to you.

That’s why you need to hire a financial advisor who can keep an eye on things and ensure that everything remains as it should so that you don’t have to worry. Here are five reasons why hiring a financial advisor could be right for you and your business.

No. 1: The right financial advisor will have your best interests at heart


A lot of people think about investment advisors as being less trustworthy than other financial professionals. But advisers are required to have their clients’ best interests at heart because they have to act in accordance with their fiduciary duty. On top of that, you can also sue an adviser for breach of fiduciary duty, so there’s actually a real incentive for them to do what’s right for you!

No. 2: A financial advisor can help you avoid common mistakes


It’s possible to make good investments on your own, but when you invest in something—whether it’s an investment vehicle or a company—you’re entrusting that thing with your money. Anyone can make mistakes, and many people do (even experts). If you want help navigating these waters and avoiding common pitfalls, it makes sense to work with an advisor.

No. 3: A financial advisor can set goals with you and help keep you accountable


A recent study published in The Journal of Personal Finance found that those who work with financial advisors are far more likely to be on track toward saving for specific financial goals—whether it’s for retirement, college, or other major life events.

The reason is simple: Having someone else regularly check in with you helps keep you accountable and boosts your motivation to reach these goals. If you don’t have anyone keeping an eye on things, it can be easy to fall behind and let important savings goals slip by.

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No. 4: They can help you think outside the box


Faced with an important financial decision? Get advice from a professional, who can tell you if there are other options available to you. Even if your advisor thinks what you want to do is not right for your situation, they will be able to present alternatives that can work for you.

No. 5: A financial advisor may have access to products or services that are otherwise difficult to find


Most financial advisors specialize in one area of finance (stocks, bonds, mutual funds, etc.) and have relationships with vendors that enable them to access additional products and services. A good financial advisor can introduce you to new businesses or products that can improve your finances even if it’s not within his or her specialty.