In the Age of Apps, Siri and Alexa: Why Financial Advisors Are Still Important
Personal finance, like just about everything else, is mainly common sense. Advice like “don’t spend more than you make; start investing while you’re young; don’t loan money to friends with the expectation of getting it back,” have been around for generations, and most likely will survive the next few generations as well.
So, it’s no surprise that with technology omnipresent in our lives and the dawning awareness that online tools can help many average Americans figure out a viable path toward a decent financial future, some pundits have predicted the beginning of the end for personal financial advisors.
But as many people are starting to see, there are distinct advantages to speaking with a live person when determining just how you should invest your money and chart your course for the future.
Here are some reasons why using a financial advisor is a good idea:
#1: PROFESSIONAL RESOURCES
Financial advisors have access to a variety of tools and resources that the average person does not. In addition, most financial advisors are part of a team or a network of other like-minded advisors, giving you accessibility to a wide variety of expertise when investing and planning for life’s twists and turns.
Professional financial advisors spend their time watching the market, doing research, attending lectures, and keeping track of trends. Sure, your brother-in-law may have a head for stocks, but he likely doesn’t have the credentials that a licensed financial advisor has. If you want the best chance to be successful when it comes to investments and financial planning, spend some time with a professional that has the financial expertise you need.
#2: PERSONALIZED ADVICE
Robo-advisors and digital financial platforms tend to be more of a one-size-fits-all solution, which may be perfect if your situation is not too complicated. However, when you have more at stake, having a financial advisor to assist you can make a huge difference.
A financial advisor can also be important when you are just starting to invest and building up your nest egg as they can help you identify your goals, look at the near and distant future, and devise a way to get you where you want to be financially.
You’ll need a personal financial advisor if you want to have someone you can call when the market drops, an educated opinion on what your colleagues at work are heralding as the next hot investment, or have questions about your job, buying a home and so forth.
#3: EMOTIONAL INTELLIGENCE
A good financial advisor will guide you through the creation of a financial plan that suits both your income level and your personality, stop you from making emotional decisions and keep you tracking along towards your financial goals. Experienced financial advisors stand on a foundation of working with real people, through thick and thin.
Look for a financial professional who will truly listen to you and help you work toward your most important life dreams. A good financial advisor will serve as a financial coach and investment strategist. You will become partners on the path to financial independence and peace of mind.