Wealth and Investment Management: Should You Trust a Financial Advisor?

Trust is the foundation of any kind of relationship, including romance, family, and friends. In finances, it is the most crucial aspect of a client-advisor relationship. Clients seem to care about their relationships with their financial advisor, as much as their competence and financial performance. A fraudulent financial advisor can cause an investor to be hurt or even wiped out of a lifetime of their hard-earned savings.

What Does a Financial Advisor Do?

Simply put, financial advisors provide clients with expert advice on how to manage their money and investments. Some financial advisors focus on one area, such as life insurance or estate planning, but others specialize in all aspects of financial planning and investment management.

Financial advisors are sometimes compared to wealth managers. But a wealth manager is a kind of financial advisor who typically works with high net worth and ultra-high net worth individuals. Their services are comprehensive and hands-on, including estate planning, risk management, and capital gains planning.

Financial advisors, who also act as chartered financial planners, mostly work with middle-class people and primarily assist with lifestyle planning. In other words, they help those individuals who need advice on making their money go as far as it can. Their services include: 

  • Budgeting
  • Saving for college and retirement
  • Cash flow planning
  • Superannuation planning
  • Investment recommendations and monitoring

Benefits of Hiring Financial Advisors

1. They Have Expertise in Financial Matters

Financial advisors, like PMW, are experienced, educated, and highly trained who can give you the best advice on how, when, and where to invest to achieve your financial goals. They also develop personalized financial plans regarding your savings, insurance, budget, and tax strategies.

In other words, they are the professionals who you trust when they say, “take our investment advice.”

2. They Monitor Your Portfolio Regularly

They regularly monitor and reassess your investment account and rebalance it, ensuring that it aligns with your financial goals. 

3. They Revise Your Portfolio from Time to Time

Since the market situations and needs change, your financial advisors keep track of these events and suggest revisions based on the current situation. They also review and allocate your funds to suitable assets. 

4. Help You Maintain Disciplined Approach

One of the hardest parts of investing is sticking to the original plan at the best and worst of times. But investors often make decisions on their investments out of their emotions, resulting in costly consequences. Financial advisors help you maintain a disciplined approach, reminding you that the plan was created before your emotions were involved.

5. They Provide You with a Proactive Service

After they review your statements, they will provide you with both positive and negative feedback. They will also discuss with you new sets of ideas and strategies to meet your financial objectives.

6. Reduces Your Stress Because Financial Matters Are Complicated

Financial advisors help you take the stress away from your plate by simplifying the financial process. Furthermore, they help you make important decisions on what and what not to do next. Keep in mind that as your money and assets grow, the more complex your finances will become. 

7. Coordination and Higher Return on Investment

If you are currently working with other professionals, such as a CPA, attorney, or tax preparer, financial advisors will deal with them on your behalf. They will become a “team” working together, protecting your best financial interests. 

Should You Trust Financial Advisors?

Not all financial advisors are honest. But when you find the right one who works with integrity, there’s no reason for you not to trust them. You know they’re not fraudulent when they openly talk about risks. They will also educate you about investing and explain your options in detail while encouraging you to learn more. 

On top of these, they are willing to meet you regularly to see your portfolio and not only when they push you for new investments. They listen and talk through your concerns and create financial plans to meet your financial goals. Most importantly, see to it that they accommodate all wealth levels, like how PMW wealth management service works.