Three Ways to Make The Most Out Of Hiring A Financial Advisor

Fatima Shaikh
August 28, 2022

If you find yourself with some cash left over by the end of the month and aren't sure how to proceed next with it, or if you want to invest in your future but constantly find yourself losing money instead of saving it, maybe hiring a financial advisor is the smartest thing for you to do. A financial advisor doesn't just assist people in managing their resources but also helps them manage their investments, create a spending plan, offer budgeting advice, and help in retirement planning.

A couple of decades ago, financial advice was limited to only businesses and companies with large spending budgets. However, in today’s time and age, getting financial advice from a skilled professional is an investment in itself as you’re setting up guidelines that will help you achieve financial security in the future. Since you’re going all the way with the notion, it's important to learn ways that can help you make the most out of the counsel you’ll receive from a financial advisor to help you create and follow a personalized plan that aims to achieve your financial goals.

Why Should You Follow A Financial Plan?

A financial plan helps you to identify your short-term and long-term financial goals and then design a strategy to achieve them. Every small victory you achieve gradually adds up to checking off your primary financial objectives such as buying a house, investing in your retirement, paying off a mortgage, etc.

A properly designed financial plan can help you monitor and keep track of your savings and spending, promote your financial health, and equip you for dealing with any emergencies that may come in the future. A plan is created by your financial advisor after you have assessed your financial health and discussed your future objectives with them.

Three Ways to Make The Most Out Of Hiring A Financial Advisor

You can use the tips below to make the most out of hiring a financial advisor and adhere to your financial plan to help achieve your future goals:

1. Maintain an Open, Honest, and Coachable Approach

A financial advisor can’t provide you with viable advice if you aren't honest with them about your financial information such as your spendings, no matter how indulgent they may have been. By sharing your worries, concerns, and areas where you feel insecure, your planner can set up a secure financial plan that highlights where things are right now financially, and what can be done to create a good strategy that can help you move forward and get to your ideal financial destination.

It may sound absurd, but your emotions matter greatly when dealing with personal finance. Having a clear understanding of how you feel about your finances can influence your financial behavior.

So, communicating openly with your advisor can help them develop a strategy that will work on rectifying any bad spending habits and optimizing the good ones you already have. To be coachable, you should welcome any feedback your advisor provides, show a willingness to stick to the financial plan they devise for you and ask questions whenever you feel concerned.

2. Rely On Your Financial Plan to Take the Next Steps

Your financial advisor provides the knowledge that helps you learn how to make the most of your money. However, when it comes to behavioral alterations, changing your spending routines, and recording your progress towards your financial goals, just knowing isn't enough.

Following through with the given insights and implementing them in your lifestyle is also important. You can take the counsel given to you and rely on it for accountability, too. You can add tasks to your financial plan after each step to guide you into moving forward with your financial goals. These can be specific tasks like:

●     Invest some of that extra money laying around in your checking account in a long-term investment account.

●     Increase funds transfers to the retirement plan.

●     Diversify your portfolio by looking into different investment types

 

Or, it can be as simple as:

●     Prepare a list of your priorities to share with your financial advisor when you meet next.

●     Decide what you would like to accomplish next: buying a house or starting a business.

Your progress with these tasks can be monitored by your advisor and they can follow up with accountability just as a personal fitness trainer might hold you accountable for following your diet plan and getting your fitness routine completed each day.

3. Pay Attention To Any Words of Caution

Most people focus so much on what the financial advisor tells them they should do, that they often forget their advice on what they shouldn't do. The biggest benefit of hiring a financial advisor is that they can warn you against harmful financial decisions that you may make in haste. So whenever you feel that you should liquidate your investments because you think the market is going downhill, take a deep breath, consult your advisor, and listen to them when they tell you to stick to the strategy you developed.

Consulting with your financial advisor and sticking to their advice can help you stay focused and consistent about the actions you need to take and the ones you need to avoid to continue progressing towards your goals.

Being Financially Literate By Heeding Advice

You can't expect to progress on your way to a financially secure future if you want to listen to what you’d like to hear. It’s the job of a financial advisor to highlight your blind spots, identify your weaknesses, and devise a strategy that alters your bad financial habits and introduces healthy ones so you can meet your long-term goals. However, it’s only by following that advice and sticking to it that you’ll be able to build your wealth and achieve financial stability.

Get Started Today

STEP 1

Set Up Your Personalized Planner

Keep track of your WEALTH Goals & log your daily habits. Access your planner from any device, at anytime.

sign up for free

STEP 2

Enroll in the Wealth Builder Academy

Learn how to live an abundant life, without losing everything else in the process.

access for free

STEP 3

Join the Wealthy Way Community on Discord

Connect with other Wealth Builders in our community to network, learn, and grow.

join for free
Photo credit:
Link