The general perception is that only HNIs, NRIs, or businesses avail of the services of a financial advisor because they have a large amount of money to manage. This is a big misconception as even retail and small investors can benefit from financial advisory services.
Financial advisors can be instrumental in helping you manage your personal finance, wealth, and investments. They take a strategic, research-based, and customized approach to create an investment portfolio that will maximize returns and minimize risks.
Here are some life situations when you should seriously consider hiring a financial advisor:
1. When You Start Earning
When you start investing early, you can build a sufficient corpus by the time you near retirement age. As a young investor, you also have a good risk appetite to invest in long term equity and other assets to beat inflation and grow your investment.
A financial advisor can advise you to invest a part of your salary or business income in the right investment options.
2. When a Life-Changing Event Occurs
You just got married. You welcomed a baby. You have divorced or lost your spouse. You have lost your job or your regular source of income has been discontinued. You or a family member has suffered a major health setback leading to high medical expenses for a lifetime. Such life-changing situations require you to rethink your financial decisions.
A financial advisor can help you to re-plan your investments without depleting your savings or creating additional debt liabilities.
3. When You are About to or Want to Retire
If your retirement age is near or you want to retire early, you will need a stable income for the rest of the years to live without any financial worries.
A financial advisor can create a retirement fund that will continue to deliver consistent returns to meet your routine and healthcare expenses. This fund will let you enjoy your old age without curtailing your existing lifestyle.
4. When You Need to Modify the Existing Investment Portfolio
You may feel the need to adjust your investment portfolio in two circumstances:
- The existing portfolio is not yielding the expected returns.
- You have received additional funds from a pay hike, salary bonus, real estate sale, inheritance, or any other windfall gain.
A financial advisor also offers portfolio management services. They can give your professional advice on diversifying your portfolio by investing in a mix of equity, debt, and other asset classes as suited to your risk profile.
5. When You are a Stock Market Novice
Let’s say, you want to invest in equity funds in the stock market. However, you are a beginner and hence, unfamiliar with stock market fundamentals.
A financial advisor can guide you on how and where to start your journey as an equity investor.
It is advisable to choose a financial or investment advisor who can understand your financial needs and goals. Purnartha, the investment advisory and portfolio management services firm creates an investment plan that bridges the gap between what is and what can be. Backed by strong expertise, longstanding experience, and an in-depth research model, Purnartha is your trustworthy partner for investment and wealth creation.
