An In-Depth Look at Financial Advisers

03-10-2017 | Dojo |

Is finance not your forte? In the world of personal finance, it is tough to empower yourself when you get overwhelmed by all of the decisions you need to make. With the right financial adviser on your side, educate yourself and take charge of your financial future. You’ll be so glad you took charge when you did.

Looking at Your Financial Picture

financial adviser looks at your entire picture including liabilities, assets, and income amounts. Without a full picture, the best advisor can’t provide you with the benefits including:

·Decreasing taxes. This considers both the long and short-term tax implications, so you keep as much of your money as possible.

·An honest assessment. When the money is your own, it is hard to remove emotions from the situation. A professional can do this for you.

·Allocate resources for the future. People have many priorities which often compete at once. A financial advisor helps you reach all of your goals and allocate the right amount to each priority. This is all about building a financial plan for you.

·The big picture of your money. Just like a credit report or even a home appraisal, financial advisers identify your strengths and weaknesses. If your situation is currently weak, there are ways to turn it around.

Building a Plan for the Future

The future is the biggest aspect of financial planning. While the big picture of your money shows the current situation, an adviser focuses on specifics. Key issues discussed with the majority of clients are:

·Personal taxes and business taxes (if necessary)

·Taking out health insurance, life insurance, disability and liability insurance

·Educational goals for your children and future educational costs

·Retirement plans and accounts including 401(k) and IRAs

·Long-term financial goals like early retirement,releasing equity from the home, owning a vacation home, or even starting a business 

Paying Your Financial Adviser

There are two major types of compensation for a financial adviser. The fee-only planner is legally-bound to give advice in your best interest. Typically, the rate is based on the percentage of assets managed for you, an hourly rate, or an annual fee.

A fee-based structure means the adviser gets fees paid by you as well as commissions by a brokerage. They must make financially responsible decisions which are legally sounds, but the interests of a brokerage are represented in a firm.

Just like choosing a doctor for yourself or a school for your child, the selection of a financial adviser might take time and research. Influence your financial future for the better with an adviser working on your side.

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