Knowing a little detail for the wealth-management is always good to secure your financial future. You don’t necessarily have to be the champion of financial knowledge to get going; rather a little foundation of the subject will also do you great favors. However, to be honest in today’s competitive world, rarely do an expert in one field will get time to gain insight into the financial industry. And that’s where a financial advisor comes in. 

Who are Financial Advisors?

Just like all other certified professionals, financial advisors are certified financial experts that help you get your finances in order and put you on the path for financial wealth accumulation. They can help you out by outlining a retirement saving plan or simply help you achieve the financial goals you have in your mind. Now, although the field of financial advisors is largely unregulated, which largely mean that anyone with a little insight about the industry can claim to be an advisor, there are certifications and credentials which can help you determine the efficiency of a financial advisor.

To start-off, certified financial advisors aren’t only proficient in assisting you to make wiser investment decisions, rather, they have the experience and capabilities to help you out of a financial distress, tax cuts as well as insurance. A certified financial planner is also well-versed with the local, state and federal laws concerning finances, which is crucial in terms of long-term financial planning. For instance, a certified financial advisor lake Oswego, Oregon will be able to help you out managing finances (savings, retirement, tax cuts etc.) in compliance with the state as well as federal laws. 

Here are a few aspects where a financial advisor can help you out:

• Assessing current financial standing and making adjustments in-line with your financial goals
• Create a customized plan to help you in areas of concerns (savings, insurance, college, tax, retirement etc.)
• Guide you through difficult financial times
• Stops you from making investment mistakes

Advantages of Financial Advisor:

Perhaps the biggest advantage of hiring a certified financial advisor is to get an unbiased, ration and confident opinion on money management topics. As a matter of fact, a vast majority of people don’t have the insight to look far into their financial future, let alone of planning one. Whereas, a financial advisor with firm knowledge on the subject and a clear insight into the industry can help you chalk-out a comprehensive plan that adheres to your financial goals and helps you achieve those in due course. 

Another advantage of having a financial advisor is to avoid making mistakes and falling for the tax traps. Most people are simply too naïve to have any knowledge of local and state regulations and their implications on overall financial goals. For instance, a financial advisor Portland, Oregon can help you understand the tax obligations on your earnings and savings, while simultaneously guide you through tax-break investments which can greatly improve your chances of achieving financial goals. 

Limitations of a Financial Advisor

As stated above, the financial advisory is a largely unregulated field, which means there are plenty of uncertified and unprofessional people working in the industry. Now, the cost of hiring an incompetent and unprofessional (in worst case scenario dishonest) financial advisor can simply leave you with an unimaginable financial disadvantage. Here’s a snapshot of how a dishonest and unprofessional financial advisor can ruin your goals:

• The unnecessary churning of investment: in order to make more commissions out of the sales, a dishonest financial advisor can put you through rough buying and selling patterns
• Expensive Investments: Getting you to go for an expensive mutual fund
• Bad Planning: an unprofessional financial advisor can out you on holes-ridden track leaving your investment vulnerable to loss
• Unresponsive: Even a certified advisor who keeps holding off your calls/emails is simply useless