Are you trying to decide if you would benefit from the advice of a financial advisor? This blog article will help you decide whether engaging a financial advisor is right for your situation.
The Pros of Hiring a Financial Advisor
1) They can help you set goals. They can help set goals for where you want to be financially in the future and create a plan for getting there that fits your values and lifestyle. Financial advisors can help you set these goals, and understand what it will take to achieve them.
2) They can introduce you to new investment vehicles. It’s not uncommon for financial advisors to recommend publicly-traded mutual funds, ETFs, and other liquid securities that you would otherwise not know about. If you’re a high net-worth individual, you might also be presented with other investment opportunities, such as real estate development projects.
3) They can help evaluate risk. They help manage risk by recommending investments based on your level of risk tolerance. People have different levels of risk tolerance due to a number of factors: their age, their personality, their lifestyle, their outlook on the future, and more. An advisor can help you evaluate your risk tolerance, and make investment recommendations accordingly.
The Cons of Hiring a Financial Advisor
1) Financial advisors charge a fee. This fee can be an hourly rate or a percentage of assets under management (AUM). Fees vary widely depending on the type of advisor you hire and their experience level. Depending on the size of your portfolio, a financial advisor who charges an hourly rate is likely to cost more than one who charges by AUM, but they might also be able to provide more personalized service due to the time spent with you by their staff.
2) You might disagree with their advice. Your financial advisor might tell you that you’re current investment strategy is not working, or you’re not on track to meet your financial goals. This can be very difficult to process. However, it’s typically best to hear this news earlier instead of later, so that you can take the next steps to rectify the situation and get back on track.
If you’re a high-net-worth individual in the Houston, Texas area, then hiring a financial advisor could be the right decision for you. An experienced financial advisor can help you set goals, introduce you to new investment opportunities, and evaluate your risk tolerance, but this comes at a price.
Schedule a free consultation with one of our team members today. We can help you evaluate if hiring a financial advisor is a good decision.
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