In today’s fast-moving world, credit facilities, credit ratings,
and pressures of bank lending through credit cards, brings
financial know-how very high up the agenda of importance for
most people. That is why financial advisors are very useful
things to have, since not all of us are equipped to deal with
matters concerning finances. The reality is that our finances
have to be dealt with.
Mind you, sometimes a financial advisor will be of the
‘old school’, and if you are an entrepreneurial type, he or she
will go up the wall if you put risky schemes to them.
I know, my old financial adviser once told me my acceptance of
risk was so high I was half way up the Eiger!
Three life changing events drive the majority of people to seek
professional financial advice, according to a study done by the
Certified Financial Planner Board of standards –
Namely:
1) Handling an inheritance (72%);
2) Facing a complex investment product (61%); and
3) Making portfolio/401(k) investment choices (52%). Amazingly many
people do actually seek professional financial advice, as they have
realized how much easier it becomes to handle financial issues.
Before seeking professional help, you should ask yourself how much
money you have and how complex your financial situation is.
If you find that your financial situation isn’t all that complex,
you might want to reconsider talking to a professional financial
advisor.
You wont get advice from a financial professional for free, so you
should avoid consulting one unless necessary.
However, timely and correct advice even for a fee can be worth more
than its weight in gold.
Remember though – Free advice is just that – Free.
In situations that only require you to do a little bit of research
on your own, you are probably better off avoiding the financial
professional.
You should instead determine what you need to know, research that
topic, and then make an informed decision based on your work and
your financial needs.
Alternatively, if you are in a serious financial quagmire, getting
professional advice might be the best thing you can do to get back
on track. You will find it a liberating experience to finally
understand all this financial jargon. And it could then help you
to better understand and handle your finances.
As Benjamin Franklin once put it: If a man empties his purse into
his head, no one can take it from him. An investment in knowledge
always pays the highest return.
Article written by Geoff Morris.