When it comes to the topic of investing, most people have no idea where to start.
THAT’S NORMAL.
Everyone has unique talents to offer this world, and everyone plays their own part in providing and creating something meaningful. We’re not all supposed to be Jack (or Jill!) of all trades, right? The fact that we all do our best to maximize our strengths and make the most of our life experiences is really something special, isn’t it?
You might be wondering: okay, but what exactly is a financial advisor? What do they do?
A financial advisor (or investment advisor) is any person or group that makes investment recommendations or conducts securities analysis in return for a fee (as defined by the Investment Advisers Act of 1940).
What does this really mean?
It means that a financial advisor is able to help you plan for major life events (such as retirement, sending your children to college, purchasing a home, paying off student loans, paying for a wedding, etc.), and help you invest accordingly so that you can live the life you’ve always pictured.
Think about it: you probably want to retire someday, don’t you? Are you picturing relaxing mornings by the water, not waking up to any alarms, travelling around the world, spending time with friends and family, living in the moment, and ultimately… not working? Us too! The retired life sounds dreamy, doesn’t it? But here’s the thing – without proper planning and saving, that dream life may stay a dream. Like anything else worth having, achieving a goal requires strategic action, responsible saving, and a realistic plan. A financial advisor can help with all of that.
How much money do you need to meet with an advisor?
Every advisor is so, so different. Some require a minimum investment amount (which they’ll often mention on their websites), while others offer more flexibility. If you’re interested in working with advisor, be sure to ask them to clarify their requirements. If you’re wondering if you have “enough” to open an account, I would tell you …YES! In general, the sooner you can begin investing, the better. Taking advantage of compound interest is incredibly valuable, and starting early can allow you to truly optimize your exposure to the compounding effect. Keep in mind, you may start with very little, but even a little can go a long way.
How can you get started?
First things first – think about why you would need an advisor and what goals you have for your future. Doing so will help focus your priorities and help you better understand what you’re hoping to accomplish by working with an advisor. Next, set up time to meet with an advisor. Several advisors offer free consultations for new or prospective clients, so take advantage of this chance to meet with one and determine if it is a good “fit”. Ask questions, get to know the advisor, and assess how you feel. A “good” advisor should make you a priority and want to form a long-term relationship with you (versus creating a transactional relationship).
Have more questions on working with a financial advisor? Check out this post for more information!
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