It is common that people seek professional attention when confronted with problems beyond their managerial capacity. When we feel sick, we seek the attention of a medical doctor. When the car changes sound, we look for a car mechanic. When arrested by law enforcement agents, we reach for a lawyer. When the furniture is not standing upright, we look for a carpenter. The list is exhaustive. But when confronted with financial issues, most people think it's personal and they can figure it out. It's difficult, especially in this part of the world to seek the assistance of financial advisors. But statistics shows that most of the challenges faced by people in the world today is rooted in money or money related issue. Most failed marriages today are consequences of money issues gone bad. Companies are folding up on a daily basis. Individuals and businesses are running into debt owing to bad investments. Most crimes committed today are because of financial pressure. There can't be a better time to seek professional advice.
Who then is a financial advisor?
According to Investopedia, a financial advisor (or adviser) is a professional who provides financial guidance to clients based on their needs and goals. Typically, they provide clients with financial products, services, planning or advice related to investing, retirement, insurance, mortgages, college savings, estate planning, taxes and more. Below is the best time to engage one.
You just got a job: Getting a job marks the beginning of a steady cash flow for many. But one thing about this cash flow is that it is not permanent. It must surely end either through resignation, retrenchment or retirement. This cash flow should be properly channelled in order to make something reasonable out of it. Poor financial decisions are inevitable if you don't get sound financial advice. The proper thing to do is to have a plan and meet a financial advisor to assist you draw a road map on how to actualize those plans. Nothing works successfully without a detailed plan and an unwavering commitment to stick to the plan.
You just inherited an asset: If a loved one has passed and you're expecting to receive an inheritance, you may have a number of questions about the process; such as is the inheritance taxable and what to do after receiving the inheritance. Depending on your goals and what type of asset you inherited, your options may vary. At this point, you need the assistance of seasoned financial advisor. Transferring wealth from one generation to the other is difficult in this part of the world. Most people that inherited some form of investment end up mismanaging it. This is a consequence of lack of guidance by a financial advisor.
You just got married: Getting married is an exciting time in life but it can also be a time of significant financial change and stress. First there is the cost of the wedding itself- and the budget you'll have to tie yourself to so you can have exactly the wedding you want. Then, when the honeymoon is over, there's life ahead with all the financial decisions you'll make together as a newly married couple. Also bear in mind that sooner or later, you'll become parents. Raising children places financial obligation on parents. There's no better time to see a financial advisor.
You want to raise capital for your business: Have you ever tried to get a loan from Financial institution for your business without success? Have you tried to get equity capital for your business only to be turned down by investors? There may be something you're doing wrong. You see there are some critical information these capital providers are looking for in your books that'll determine if they're going to provide the much needed capital or not. Financial advisors understand this better than you and the earlier you engage them to assist you, the better.
When you want to make big investment: Most persons find themselves in a quandary when it comes to investment. Some start to ask; do I buy shares, funds, piece of real estate, commodities etc. If you're thinking of investing in the above-mentioned products, you may feel confident to buy them directly from a broker or fund without taking advice. However, these products are harder to understand than cash savings products, and by not taking advice, you may not be considering all of the options available to you. There's also a risk that you may buy a product that's not suitable for you because you don't understand it. Advice can help you buy a better product than the one you choose yourself. An advisor will also have the expertise and knowledge to find better options, as some products are only available if you go through an advisor.
