Looking for a Financial Advisor? Don’t Make the Same Mistake 77% of Americans Make
Waiting too long to consult with an advisor could set you back big time.
Seeking guidance from a qualified advisor can help bring you closer to meeting your financial goals. But when it comes to financial advisors, most Americans tend to make one major mistake, and it’s not choosing the wrong professional or paying more fees than necessary. Rather, it’s not getting help early enough.
Among Americans who use financial advisors, 77% feel they should’ve started seeking outside help earlier in their careers. Meanwhile, 59% of Americans feel that to offer the maximum benefit, an initial meeting with a financial advisor should occur before the age of 35. If you’ve been putting off that first talk with a financial professional, you should know that the sooner you get started, the more of an opportunity your advisor will have to help you map out your future.
What are we waiting for?
Why do so many Americans hold off on meeting with an advisor? 35% of people who postpone that crucial first meeting do so because they think they don’t have enough money to invest. In fact, almost half of Americans assume they need more than $50,000 in savings to justify calling an advisor in the first place.
Many Americans don’t feel the need to meet with an advisor until they reach a specific milestone, like retirement, buying a home, or having a child. While these events might be natural triggers, they’re by no means prerequisites to enlisting outside help. Though advisors do tend to focus on long-term goals, many are also available to help with near-term financial matters, like budgeting, loans, building emergency funds, or navigating insurance-related decisions.
What can your advisor do for you?
Let’s talk about budgeting for a second, because almost 60% of Americans don’t do it, and that’s a problem. Following a budget is one of the easiest ways to keep track of your finances and identify opportunities to save money, whether it’s for short-term goals like buying a house or long-term goals like retirement.
Emergency savings, or the lack thereof, are another area where Americans tend to fall short. Now, you don’t need an expert to tell you that having little to no money in the bank is a bad thing. But what a financial advisor can do is help you reconcile your income and expenses to find ways to save.
Finally, there’s insurance to think about. Families with children under the age of 18 are particularly lacking in this area. And since life insurance is one of those things that tends to get increasingly expensive over time, having a financial advisor suggest it when you’re younger could help you lock in a more favorable rate — for life.
Of course, these are just some of the things a financial advisor can help you with. Just as importantly, if you are a good saver, an advisor can develop an investment strategy to help you meet your retirement savings goals.
The sooner you start investing, the more opportunity you’ll have to take advantage of accumulating wealth — which is why it pays to start using an advisor early on in your career, when you have four decades (or more) to accumulate wealth.
No matter how old you are or how much money you have, it’s never too early to make an appointment with a financial professional. And if you find the right advisor it could mean the difference between achieving your money-related goals or falling short time and time again. Talk to the financial and retirement planners at Hercules today!