Why is a Financial Advisor Important for Investment Planning?

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What is the role of a Financial Advisor? Do I need a Financial Advisor? How can a Financial Advisor’s services help me?

These are some of the very common questions asked by a number of people. In modern times, the need for Financial Advisors is increasing because people do not have the time (or sometimes the skills) to manage their personal and household finances. A large majority of people will deny that they need a Financial Advisor but it is a well-known fact that people who work with Financial Advisors tend to make more money and are better at investment planning.

Financial Advisors are professionals who help you in making decisions about what should be done with your money - what portion should be saved, how much should be invested, which investments are more likely to be profitable and other courses of action that you must take to make money work for you.

Financial Advisors use their expertise and knowledge to make financial plans that help in attaining the financial goals of their clients. Thus, the importance of a Financial Advisor cannot be denied in one’s financial journey as they are the bridge that helps you in the accomplishment of long-term financial goals.

It has become natural to assume that financial influencers with a large number of followers can be highly relied on. In fact, GenZs are more likely to get advice from social media platforms and this may not always be the right thing to do.

It is inappropriate to trust everything that is happening on social media and financial advice is rarely one-size-fits-all and this magnifies the importance of a Financial Advisor.

Also, it must be understood that your personal financial goals, income, expenses will differ from time to time. Hence, only a professional Financial Advisor must be consulted on a regular basis so that you don’t face the adverse effects of hearsay opinions.

As a matter of fact, you must avail the services of a Financial Advisor for all your financial needs like investments, insurance and retirement planning among others.

Let us discuss some of the major benefits of availing the expertise of a Financial Advisor: -

Professional Expertise: - 

It is commonly said that if you need to get the task done in the right manner, hire the relevant expert. Similarly, if you aim to ease your financial journey and make it look profitable in the long run, the services of Financial Advisors must be availed. A Financial Advisor’s professional expertise and insights can help you in making wise financial decisions, which in turn will enable you to save and invest prudently.

Systematic Evaluation of Investments: -

 A Financial Advisor can help you in the determination of proper asset allocations that are aligned with your financial goals. If you have an investment portfolio, an experienced Financial Advisor can help you in the evaluation of your investments and review them from time to time so that you can assess whether they are appropriate for your short-term and long-term goals.

Financial Advisors have a fair understanding of the market performance and accordingly guide you with correct investment advice and help you in proper investment planning.

Assistance in Making a Financial Plan

Making a Financial Plan requires expertise and suggestions from others, depending on the market scenario, interest rates offered on investments and various other factors. Hence, a Financial Advisor can help you make a beneficial financial plan that will help you in meeting your future goals in a simplified manner. A Financial Advisor is well-equipped with expertise to understand your goals and needs. Thus, they also see the loopholes in your financial planning and accordingly devise the right plan for you.

Need for Financial Advisor

A Financial Advisor is like a partner in your financial journey. Let us imagine a scenario. 

X, aged 30, wants to retire in 15 years and build a NGO for underprivileged children. To accomplish this goal, X needs to start saving right away and further invest the savings so that they can grow properly.

If X does not have an experience of investing in the stock market or does not have a proper investment strategy in place, he can lose some money and not attain his financial goals in time. 

But, if X has a well-qualified and experienced Financial Advisor to assist him, his plans can become a reality. A Financial Advisor will consider all the aspects of X’s financial planning like retirement needs, medical bills, other expenses, children’s education and needs etc. After this, he will make a thorough financial plan by getting a complete picture of his assets, liabilities, income and expenses, which can help X in attaining his goals.

Hence, the roles and responsibilities of a Financial Advisor have become very important and are essential in improving one’s financial health. So, whether you are nearing retirement, have inherited some money from a parent, are recently married, recently divorced, just had a child, or need to pay medical bills for your parent/s – it is time that you must contact a Financial Advisor.

Additionally, when you are managing your finances all by yourself, you may not devise the right strategies and use the right techniques. However, with help of a Financial Advisor, you can leverage their skills to learn new methods, and unique approaches and accordingly enhance your decision-making process. This will, in turn, improve the performance of your portfolio and help you improvise your analytical skills too.


So, if you are puzzled about your investment strategies or cannot spare time to monitor your investment portfolio, it is the right time to talk to a Financial Advisor and get some guidance so that you can handle your money in the best way. Financial Advisors play a key role in helping you construct personalized financial plans and also check in with you regularly to re-evaluate your current situation and accordingly ensure that your long-term goals are achieved. 

Also, be wary of what you see and hear on social media from fin-influencers and ensure that you only consult an experienced Financial Advisor. After all, it is your hard-earned money.

If you are looking for financial advisory services, mastertrust has a wide array of options to offer you. This includes safe and secure access to online trading platforms bundled with charting options, real-time quotes, portfolio tracking, news feed and research options and various other digital tools.

Connect with us today for Investment Advice to simplify your Financial Journey.

Disclaimer- Financial Advisors do not guarantee returns.