It is seen that many people take financial decisions based on recommendation by their family, friends, colleagues, etc. These are the people whom we know well and therefore take their advice without thinking too much. However, these people may not be knowledgeable enough to give you advice or recommend a financial product.
Investing in a product just because a person recommended it to you may cause you loss. If you invest in a product based on advice of a friend or relative you might repent it later. The person giving you advice might not be fully aware about the pros and cons of the product or the suitability of the product for your needs. For example, if someone tells you that they booked lot of profit by investing in a particular stock, it does not mean that it will be profitable for you too. Investing in stock requires a proper analysis and good timing before you invest in them.
So if the advice of friends and relatives is not reliable where should you look for your investment needs? The answer is simple – Professional financial advisors. Financial advisors have deep understanding of various financial products such as insurance, mutual funds, stocks, etc. They know the benefits various instruments offer and also its drawbacks. They are experts in the field and can help you with savings and investments.
Financial advisors will help you decide where, when and how much you need to invest based on your current and future financial needs. This includes a wide range of financial goals such as marriage plans, vacation, children’s education, retirement, etc. They will systematically plan your investment taking into consideration your income and expenses. You might not always understand the complicated matters relating to investment, insurance and tax savings. Financial advisors with their knowledge and experience make it simple for you. They will also monitor the progress of your investments to see if any changes are required in your asset allocation. Your tax related queries can also be resolved by them. This will save you lot of time and worries. You do not have to be a big investor to take help of advisors.
People are normally reluctant to seek help of financial advisors for many reasons. They may think that they can manage their own money and taking help of professionals will not be worth it. Some might also have issues regarding trusting some unknown person with their money. Besides, some may be wary of them charging huge sum for their services. All these issues should not matter if the advisors are well qualified and if the cost is worth the services rendered.