The many ways a financial advisor can help you

A financial advisor assists individuals in managing their finances, projecting the results of their savings and investments to see how prepared they are for retirement.  Financial advisors help their clients make decisions about their wealth that would help them reach their financial goals efficiently.

Through financial planning, you can realize your financial goals, such as when you should use your money, and for what you will be using it.  With the help of a financial advisor, you would have a laid out plan of action with particular steps to reach those goals.  A financial advisor should gather personal and financial data about their client to develop projections that reflect timelines and methods of goal accomplishment.

Good and effective financial planners give advice to their clients with regard to what needs to be done differently, how much money has to be saved, what types of retirement accounts to use, what type of mortgage they should have, how much to keep in the emergency fund, what kind and how much insurance is needed, what changes might improve their tax situation, and others.

Many financial advisors give estate planning guidance and services for tax planning.  The fee structure for financial advisors vary, as some are paid an hourly rate, a flat fee to complete a project, a quarterly or annual retainer fee, a combination of fees and commissions, and more.  Before availing of their services, it’s best to ask for a clear explanation of how they are paid.

Andrew Curran Wesleyan is a student at the University of Connecticut. He is taking up a degree in finance and aspires to become a financial advisor in the future. More from him on this blog.