A financial advisor guides how, where and when to invest. Their advice could be for a healthy financial plan or individual investments made towards a larger financial plan. Financial advisors advise choosing the financial instrument, deciding how much to invest, reviewing frequently, and taking corrective measures if needed.

Why do we need a financial advisor?

You might often think that there is plentiful information on the web about investing – then why would one need a financial advisor?

Because a financial advisor specialises in providing financial advice to customers based on his expertise and requirements, while you could be aware of your needs and the way to go about investing for it, you may not always have the time to do it all by yourself, says John Bonavia. Here is where a financial advisor takes the responsibility from you onto him.

Here are some benefits of engaging a financial advisor for your investment and financial planning needs:

• Understanding your investment needs and chalking out a financial plan:

One of the very first steps while chalking out a financial plan is to understand the need and purpose. Your financial advisor understands you, your needs and future goals and accordingly draws a long-term plan to fulfil them.

• Financial expertise:

A financial advisor brings with them expertise in the financial markets. They undergo several pieces of training and carry certifications to secure the title of a financial advisor or an investment advisor. And thus, engaging a financial advisor to help build a portfolio, chalk out your goals, and help track it could be a good idea.

• Helping you choose the ideal path to be financially fit:

Once you decide on your goals, your financial advisor will help you choose specific investment options to achieve them. Your advisor would help you choose the appropriate financial instrument basis your risk-return requirement and match it with the appropriate financial instrument.

• Regularly monitoring your portfolio:

A financial advisor helps you monitor and reassess the investment performance as you may not always have the time to do it. Regular monitoring of your investment portfolio is necessary to ensure the alignment of your investments with your financial goal.

• Revising portfolio from time to time:

An investment portfolio needs review and reallocations depending on the market situation and changing needs. An advisor would suggest revisions based on his expertise and market situations in such situations, says John Bonavia.

According to John Bonavia the role of a fitness coach is similar to that of a financial advisor – both carry expertise, both ensure a sound fitness plan – whether physical or financial and both help in monitoring and ensuring the effective progress of the plan during the long term.

When deciding on the type and scope of advice you might need from a financial advisor, it’s important to ask the right questions about your money needs and assess your comfort level in managing your finances.