Everything in life involves finance. Most of us make decisions everyday, without much consideration of their impacts. Here are the top 5 reasons why we need assistance.
According to Warren Buffet, widely considered as the best investor of all time, you should take care of your finance in the most efficient way. He stated "Don't save what is left after spending, but spend what is left after saving". How do you emulate that strategy? And let's face it, most of us starting out thinking we can manage our finances ourselves. And why should you pay someone for doing something you can do yourself?
"Don't save what is left after spending, but spend what is left after saving." Warren Buffett.
To perfect or master a skill, you need to put somewhat of 10,000 hours of consistent practice. If you're working full time and decide to dedicate 4 hour every weekend to perfect the skill, it will take somewhere around 48.08 years to reach that level (or 24.03 years if you double that every weekend). The choice is yours to make. The great economist Adam smith stated that "We should, as a person or country, focus on producing what we are good at, and exchange for what we are not good at, at a lower opportunity cost."
1. They are good at what they do, and up to date with markets they operate in.
Most financial advisers will have to be qualified and regulated with regulators, product providers, brokers as well as tax agencies. Depending on the country they operate in, they must follow their regulation and requirement of the industry. There are various tests/exams yearly to ensure that they are up to date with the latest environment. Therefore they are well equipped to make your life easier.
2. They can help you create a plan in the most efficient way.
How often do you do you own investment research, or rebalancing your portfolio? What do you do to in terms of capital gain and tax planning? What is the latest contribution cap into your super? Depending on your circumstances, an adviser will help you create a plan and execute that in the best possible way.
3. They can give you a 360-view on your situation.
Sometimes, we need a second opinion and guidance. Even if you're a financial expert, everyone has a blind spot. A doctor doesn't do his own surgery, or a dentist doesn't pull his teeth out by himself. We always have an instinct to believe we are right all the time. However, having an expert opinion can help us to evaluate the situation.
4. Financial advisers keep your emotions in check, as well as eliminating stress.
We have different stages in life, where our decisions might not be the best. Sometimes external factors can influence our decisions. And those can make or break your investment plans. Having a financial adviser can also help to mitigate stress, and spending more time with your family.
5. Financial advisers can also give you tips on the latest trends.
Because they operate in the industry, with many different cases, they tend to formulate a good hub for the latest information. Having an adviser is like having a family member, who will start a long-term relationship with you. Therefore they will help to bring great tips on the latest trend.
These are the top 5 reasons why you should have an adviser.
Written by Dean Nguyen.
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