In a nutshell: Congratulations! You have decided to take ownership of your financial future by seeking the guidance of a financial advisor.
While you might be new to the world of investing and financial planning, seeking the expert guidance of a financial planner is an important step in helping you to personalise your financial planning. An advisor can provide investment guidance and portfolio management, and assist with tax and estate planning, while also providing behavioural coaching and emotional support.
Seek expert advice
A financial advisor will become your financial coach. He/She will work closely with you to tailor a retirement strategy for your goals and aspirations. His/Her expertise and advice are invaluable because financial advisors are qualified and board FSCA / FSP certified to assess your current financial position and help structure a plan that will enable you to achieve your goals.
Financial advisors possess a deep knowledge of a wide range of financial products, investment strategies, tax laws and estate planning techniques that will help take the guesswork out of trying to figure out these complex details on your own.
Selecting the correct financial advisor for you is a process of verifying his/her qualifications and ensuring there is alignment with your goals. Fundamentally, you should respect and value each other to embark on what can be a 10- to 35- year investment journey.
A financial advisor who is independent, provides fee-based services and is not incentivised to sell certain products but is motivated to provide the best possible service, is the one you are after.
Investment guidance and portfolio management
Once you understand the language of investing, it becomes a joy to watch your wealth grow over time. But before you reach that point of understanding, it can all seem very intimidating.
Help is at hand in the form of a financial advisor who is equipped to offer valuable investment guidance to help you navigate the complexities of the market.
He/She will assist with key functions such as asset allocation, diversification of your portfolio and how to select the appropriate investment vehicles. When you use a financial advisor you are paying for a service that should benefit you and should include monthly or quarterly reporting, ongoing portfolio management, and the ability to rebalance your portfolio risk and exposure.
Tax and estate planning
Effective tax and estate planning when structuring your retirement portfolio is probably one of the most crucial reasons to use a financial advisor. His/Her understanding of updated tax laws and regulations will optimise the tax efficiency of your portfolio.
Taking advantage of tax breaks will maximise your returns at retirement and should lower your tax deductions, especially if your savings portfolio contains a mix of both local and offshore investments.
Behavioural coaching and emotional support
Recognising the importance of early and proactive retirement planning will require behavioural change. This process of change is not an easy one, because it requires a shift from instant gratification to long-term thinking, which is fundamentally grounded in identity and how we see ourselves. The way we perceive the future often determines the proactive measures we take today.
Managing your personal finances involves rational decision making, but often emotions get in the way. Fear, greed and impulsive behaviour can lead to poor financial decisions. And this is where a financial advisor becomes a welcome ally. He/She will provide you with the support to stay grounded with your financial goals, while making you accountable for your future.
Conclusion
A financial advisor’s role is to serve you and enable you to reach your goals, whatever they might be.
Although financial advisors are the experts, never allow that fact to intimidate you or overwhelm your goals and vision for your future. Ask many questions until you fully understand and are completely comfortable with their recommendations and the service you are receiving.
Always remember that this is a partnership, so ask about fees, understand the underlying investment products you are invested in, and enjoy the process of having a partner on your journey to financial success.
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