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Why we need a financial advisor and the long-term benefits of having one


Whenever you ask people if they need a financial advisor, they tend to answer by saying that they don’t feel the need to have one. The large majority will deny they need a financial advisor, while some others will even add that they aren’t aware of the term. So, let’s start with who is a financial advisor.

To answer this in simple terms, any person who knows finance and can guide you throughout your financial journey is a financial advisor. They can guide you on various financial aspects such as when to invest, which investments are more likely to be profitable, their review of various investment products, and many more. Financial advisors can also help you in setting up your investment plan, especially to meet long-term goals.

A financial advisor can help with the finances of common people, investors, business owners, and entrepreneurs. A financial advisor specializes in the field of finance and investments. They provide financial knowledge and advice to customers based on their expertise in that field and as per the requirements of the customers.

While the benefits of having a financial advisor are many, there are some that stand out. Let’s discuss the main benefits of leveraging the expertise of a financial advisor.

  • Financial expertise – A financial advisor has expertise in the field of finance and is, therefore, perfectly equipped to answer any financial queries you may have. Based on your needs, they can advise you on your investments and finances. A financial advisor can also help you in making wise financial decisions, which in turn will help you by enabling you to save more and invest properly, among many other benefits.
  • A beneficial financial plan – A financial investor can plan a better and more beneficial financial plan that can enable you to meet your financial goals. They understand your needs and future goals and accordingly devise a financial plan. Many times, people don’t plan their financial future well in advance, which consequently leads to problems after retirement. A financial plan is a must-have tool to avoid such situations. And no one can create a better plan than a financial advisor.
  • Setting SMART goals – SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. A financial goal, for example, needs to be SMART to serve the best returns. People who make financial plans by themselves, often fail to account for one factor or the other, with the plan either lacking a realistic approach or not properly taking the adequate time factor into consideration. Sometimes, they lack proper research and knowledge before investing, leading to an unwanted result for them financially. That’s why, taking the expert advice of a financial advisor, who is equipped with proper knowledge and expertise in finance, markets, and investing, while planning any financial goal can enable you to generate better returns and financial gains in the future.
  • Managing your Portfolio – Building the right portfolio, monitoring it from time to time, and reviewing it regularly is not every investor’s cup of tea. That’s where a financial advisor comes in, by helping you manage your portfolio. Their expertise in markets and finance helps you build a strong investment portfolio. A financial advisor analyzes your income, future goals, purpose, and the prevailing market. Accordingly, they help you choose the right investment options and products that arebased on your risk and return requirements. After making these investments, they help you monitor the performance of your investment portfolio. Their understanding of the market proves to be beneficial in such cases. For example, whenever you consult a doctor for your health concerns, you tend to prefer going with a specialist to lead you on the path of recovery; similarly, a financial advisor is a specialist whose advice you may seek to manage the health of your investment portfolio and achieve your long-term financial goals.

Now, you may consider getting financial advice one time. But let me tell you that one-time advice often fails to provide the financial benefit you need. Planning a financial journey strategically is the first sound step towards achieving your goals. In addition, people also fail to monitor, revise, and make necessary changes to their financial plans based on changing situations. Thus, having frequent advice sessions with an advisor can help more meaningfully in the long runas they can not only develop a cohesive investment strategy but also provide the right support in tracking your financial goals.

If you are a business owner or have unmanageable expenses, then hiring a financial advisor can help you with your finances. While it may seem like an extra cost initially, the long-term benefits of having a financial advisor cannot be undermined as this can prove to be a profitable financial journey after a certain point of time. So, have a conversation with your financial advisor and take their advice as that will surely minimize your risk and yield long-term results, while enabling you to save your time and money in a more organized manner.

To conclude, I believe that in many respects, the work of financial advisors is connected to the upliftment of society as they serve the dual role of providing financial literacy to common citizens and welcoming them on the path of financial independence.

Views are personal: The author, Hemant K Midda is the Director of My planner from Jalandhar



Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article / video are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any manner for the consequences of such action taken by you.


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