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Why hiring a personal financial advisor is good for your finances

An expert financial advisor is an essential arrow to have in your personal quiver. Like hiring an accountant for your business, a financial advisor will bring a better direction to your money management. Regardless of how much wealth you have, it is paramount that you plan it well, and most crucially, use it in even better ways.

Money enables us to enjoy life and it follows that the better you take care of your money, the more enjoyment is likely to follow. Despite this, only a small percentage of the world population have a personal financial advisor, and an even smaller fraction seek professional financial advice.

Get a financial advisor today

You need a financial advisor, even if you don’t know it yet. Image: Mohamed Hassan/Pixabay

There are many success stories of people receiving life-changing advice from qualified advisors. However, the confidential nature of the advice process means that these stories are often not told publicly.

When to seek financial advisory services

A financial adviser can help at all stages of one’s life. Younger people use advisers when they are saving up for or buying their first home, paying off a mortgage, or protecting their families from the effects of death or serious illness.

People in mid-life use advisers when looking at protecting their lifestyle, setting up investments, managing tax, dealing with inheritances and planning for retirement. Later in life, advice revolves around retirement income and spending, managing investments, health care, estate planning and aged care planning.

What financial advisors do

At all stages of life, financial advisers can help with setting and achieving financial goals, money management, debt structuring and reduction, and protection of assets and income.

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Finding a financial adviser is easy. The Nairobi Securities Exchange website lists a number of reputable and publicly traded advisor. Alternatively, these could be found on the official website of the Capital Markets Authority.

However, the most productive resource in the quest to select a reputable financial advisor should extend beyond the major oversight bodies. Using the Kenya Association of Stockbrokers and Investment Banks would be the most optimal choice. This is because the advisor you choose from here will be both licensed and competent as well as being a recognized member of the oversight body.

Working with a financial advisor

All advisers are required to provide you with a disclosure document free of charge on request that sets out the basic information you will need about their services. Working with a financial advisor guarantees the following benefits;

1. Proper management of expenditures

why you need a financial advisor

A financial advisor will help plan your expenditure. Image by Robert-Owen-Wahl from Pixabay

It is easier for your spending to go out of control when working alone than if you involve a financial advisor. This risk, however, is minimized if you let an expert run your finances, including expense planning and trcuking, budgeting and the all important need to grow your capital.

A major benefit of using a professional financial will be determining your tax obligation every year and paying it off. Let’s be honest, dealing with all these tax shtuff* sucks and having someone do it for you, albeit at a cost, is a much better option.

2. Investment strategy and growth

Your money won’t last forever, unless you plan for it well. You know that. And so does a professional financial advisor.

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The difference, however, is that the latter can help you make your money last forever, make you achieve far more than you could on your own, and build the right legacy for your family.

In fact, investment advisors do more than future-proofing your finances; they provide a roadmap (investment strategy) for most likely events that could hurt your financial security. In a way, they ensure your kids are properly taken care of regardless of your current lifestyle.

3. Estate planning

When all is said an done, we cannot outrun our motality. And when that time comes, it would be much better knowing your estate (if you managed your time well and worked hard enough) has been sufficiently taken care of, and that your family is properly taken care of.

Whether it is estate tax, succession planning or even handling your donations and stuff, you need to entrust an experienced professional to take care of it all.

And finally…

It is a good idea to call or meet with several to find out whether they have the skills you are looking for, how they can help you and how much it will cost. There should be no cost for an initial exploratory meeting.

Investing a few hours of your time in finding the right financial adviser may be the best investment you ever make.


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