4 reasons why you should have a financial adviser

Almost everyone has heard the phrase, "It's time to take care of your finances." Many people choose to take care of their finances themselves, rather than use a financial adviser. This can work for most, but as you start to accumulate wealth, things tend to get a little more complicated, as the saying goes "More money, more problems." Here are the top reasons why you really should hire a financial adviser.

1. TIME IS MONEY

Many of my clients are successful entrepreneurs or C-Suite executives. In most cases, they earn a high level of income but may not have any financial planning experience, or in some cases, even basic personal finance knowledge. This can make it very difficult for them to identify investment opportunities, minimise their potential and ongoing tax liabilities, invest wisely for retirement and children's education planning, and minimise risk in their portfolios. Furthermore, these types of clients are often extremely busy, so even if they have the knowledge and experience, they don't have the time to make sure they are optimising their wealth strategies. This is where a good adviser comes in - they would identify and implement the best strategies, in line with risk tolerance to help their clients achieve their financial goals, and leave them to focus on their business.

2. YOUR NETWORK IS YOUR NETWORTH

Great professional advisers have extensive networks and are usually very well connected. They always have opportunities which are off-market or cannot be accessed through normal channels. These are often the best deals available in the market, or they can be accessed at better prices than normal and can be worth their weight in gold alone. Furthermore, a great adviser often has fantastic connections in other fields, such as Real Estate, Luxury Goods, Privileged Memberships etc. These can all be of value to clients in terms of getting the best prices, or off-market deals, through the right channels.

3. EMOTIONS ARE YOUR ENEMY

It is a well-known fact that people are generally very bad at predicting what they will do with their money in the future. Behavioural & Cognitive biases play a huge part in investing and often lead investors to make the wrong decisions, at the wrong time. A great financial adviser is objective and has years of experience, which allows them to make unbiased decisions for their clients, based on their financial objectives and their risk profile. This helps their clients stay on track, weather potential storms, and also maximise them to their benefit. Furthermore, advisers can help clients create good habits concerning saving and investing and act as mentors/accountability partners to their clients as well.

4. YOU DESERVE AN EXPERT

Advisers are experts in their field. They have a deep knowledge of different types of investments and products, as well as advanced strategies for managing risk and maximising returns for clients. They can provide valuable insights based on market and economic conditions and can advise clients on the best way to position themselves to maximise the potential of their investments. Not only that, but a great adviser helps clients save money, and this is often overlooked. Knowing which vehicles to use to mitigate taxes, taxes that many aren't even aware of, and keeping wealth safe is hugely undervalued. Not to mention the expertise an adviser brings when it comes to negotiating and managing complex transactions for their clients; this expertise can mean the difference in making or missing an investment opportunity.

Great advisers bring tremendous value to their clients. It's true that if you trust yourself to manage your investments well you can probably do it yourself and save a little bit of money along the way. However, in my experience, many DIY investors make bad decisions and end up losing more money than they would have if they had engaged a financial adviser in the first place. So I would strongly encourage anyone looking to invest to engage the services of a professional adviser and reap the rewards of their expertise and knowledge. What are your views on this? Are there any other areas you think that an experienced adviser can add value to their clients? Please share your thoughts in the comments below!