Most people think that working with a professional when it comes to getting financial advice is only for the rich. However, in today’s world, this is far from true. Regardless of how much you earn, it is always best to get a professional’s opinion before you make a big financial decision. Let’s have a look at why everyone should consult a professional financial advisor.

What are the kinds of financial advisors?

Before we look at why working with a professional is for everyone, we need to understand the different kinds of financial advisors that can be hired. In general, a financial advisor is someone who helps you undertake financial planning to achieve your goals. While there are various kinds of professional financial advisors – financial planners, independent financial advisors, agents and distributors – they are certified by the Securities and Exchange Board of India (SEBI) under two categories: a) Distributors and agents (fee-based); and b) Registered Investment Advisors (fee-only).

1. Fee-only: Registered Investment Advisors (RIA) charge you only for the services they render in developing your financial plan and advising you on financial decisions. They also provide wealth management services. They do not receive any commissions from the products you purchase. 
2. Fee-based: Distributors and agents earn through commissions on the products they sell. The distributor will recommend the portfolio keeping in mind the needs of the client and provide wealth management services.

Always consult a professional

In today’s world, there are no excuses left to avoid consulting a professional when it comes to your finances. Working with a professional financial advisor has become extremely affordable and more widely accessible. Here are a few other reasons why working with a professional is for everyone –

1. Start investing as early as possible: When it comes to achieving long term goals, time is of the essence. The earlier you start investing, the more likely you will be to achieve your targets. However, not many people are thinking about how to utilise their funds efficiently or don’t have sufficient financial literacy to identify instruments they can capitalise on. For a small fee, a professional will be able to bridge this gap and guide them on how they can start investing towards their goals, at a time when it matters the most. 
2. Financial planning is more than money: Financial planning is not just about allocating the funds that you have towards different types of investments. Apart from devising a strategy for investments, it includes developing a savings regiment, assessing your insurance needs, improving your tax efficiency and estate planning – which is not just about distributing your monetary assets. Consulting a good financial planner can help you devise the appropriate plan for any situation. 
3. Avoid making costly mistakes: The world of finance can be an extremely complex place to manoeuvre, particularly for new and part-time investors. This statement is especially true while planning for the long term or during periods of uncertainty. By working with a certified and experienced professional you can ensure that you don’t make any costly mistakes, by overlooking some things. 

A financial advisor is someone who helps you organise your finances to achieve your goals, regardless of how much you earn. When it comes to finding the right person to give you professional financial advice, don’t make a decision solely on previous success or reputation. There also needs to be a good rapport between your financial advisor and you, as you will be trusting them to help you make extremely crucial decisions in your life.