Publish Date: 07/03/2019
This is how a financial advisor can help you
Money is a complicated topic. Those who have it struggle to keep it. Those who don’t, strive to get it. It has been this way for years, and the story isn’t likely to change any time soon. As such, everybody needs help with their finances at some point in their lives. That’s where a financial advisor or investment advisor comes in.
A financial advisor, also known as a financial planner, is an expert who helps you to organise your finances. Your advisor will forecast the outcomes of your investments and savings, giving you a clear picture of your preparedness for your retirement and life’s unexpected mishaps.
Doing your own financial planning is fine, but seeking professional assistance puts your monetary strategy on a different level. A financial advisor is somebody who has ideally received years of training, education, and experience in everything finance-related. They could make a significant difference in the quality of the financial choices you make.
A financial advisor should collect personal and financial information about you and use this data to help you plan for your present and future needs. Your financial planner should take the time to understand your goals and would have formulated a long-term monetary plan for you before they make any recommendations.
Anyone who starts to talk about a financial product before asking about your own situation or financial goals is more likely a salesperson or an investment advisor. A financial planner is also an investment advisor, but not vice versa.
To understand the different ways a financial advisor can help you, you must become aware of what they do and what topics they’re likely to advise you on.
What does a financial advisor do?
Additionally, a financial advisor will give advice on: savings, mortgage, all types of insurance, emergency fund, your tax situation, seeking out the best investment interest rate, etc.
When is a good time to seek out the help of a financial advisor?
Benefits of a financial advisor
Despite your best efforts to stay informed, you can’t possibly know everything about financial planning. For a financial planner, that is their job.
Having someone make your financial decisions, based on pure logic and emotion-free analysis, is better for your investments than being panicked into big decisions.
Research, research, and more research. To prove useful, a financial advisor has to maximise their knowledge of the law, markets, taxation, banks, and other entities in the financial space. They won’t provide the answers to your queries unless they are sure they’re the right ones.
The takeaway from all this is: a financial advisor is here to make your life better. They are not here to get you to buy anything and they are not only for the wealthy. A financial advisor is dedicated to working with you, whether you have notable sums to invest or not.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.