financial advisorTimes are tough, no one needs to tell you that. And in tough economic times it can be difficult to stay focused on proper money management, no one needs to tell you that either.

But you might just need some one to tell you how to stay focused and how to use proper money management to your advantage.

Having some one to explain what’s important can make the difference between getting ahead financially and going nowhere.  A financial advisor is that help you may be looking for.

The Importance OF Financial Advice

The Perfect Financial Advisor

  • Your financial advisor should teach you how to make good, solid financial decisions.
  • The advisors guidance should show you how to make financial decisions that put you in the best financial position.
  • Your financial advisor should help you understand the advantages to you when making tough financial decisions.
  • Your advisor can give you advice; but you have to personally evaluate that advice and either use it or not…they can’t make you do it.
  • The advice your advisor gives should be presented to you in a financial plan.
  • You need to be very honest with your advisor when you initially prepare the financial plan.
  • You need to meet with your financial advisor on an annual basis to review your financial plan.
  • At this annual review your financial advisor can make any adjustments to your plan based on changes that you have made in your life over the past year.

Your Financial Plan

  • Your financial plan is a moving target.
  • Your financial needs will change as events come up in your life which change your life.
  • Your financial plan needs to keep up with those changes.
  • Your financial plan is a working document.
  • A financial plan is not a document that you work on once and then file it…that would be a mistake.

Life’s Changing Events That Adjust Financial Plans:

  • Getting married, getting divorced.
  • Buying your first home.
  • You have your first child, you have your second child
  • You buy a larger home, you may have more children.
  • Your children may go to college.
  • You retire, you sell your large house and downsize to a smaller home.
  • Each of those life changes create a trickle down effect to your finances and thus your financial plan.
  • Again, as you go through each of those changes, you should revisit with your financial advisor to update and make the appropriate changes to your financial plan. You need to help your advisor help you.

Even though financial advisors sometimes deliver bad news or seem to put you into uncomfortable situations, they are not the “bad guy”.  Your financial advisor is there to help and guide you when you are making different or difficult financial decisions.