The Real Benefit of Hiring a Financial Advisor
Hiring a financial advisor is a crucial decision that many individuals and households make to help manage their finances and secure their financial future.
While the potential for higher investment returns is a common motivator, delegation is the real reason for hiring a financial advisor.
A man is rich in proportion to the number of things which he can afford to let alone – HENRY D THOREAU
Delegation refers to the transfer of financial tasks and responsibilities to a professional advisor. This is done to save time, benefit from the expertise, make informed decisions, and reduce stress.
As a delegator, you don’t have to understand it to get the benefit of it. This is a wonderfull freeing discovery . Financial success is derived from the doing, not the knowing.
As is the case when you hire a physical trainer its doing that helps not knowing though knowing sometimes can help in doing but that knowing is just the outer knowlege you dont need to be an expert
Here are some of the key benefits of delegation in the context of financial planning:
Time-saving: Financial planning and management can be time-consuming and complex. By delegating these tasks to a financial advisor, individuals can free up time and mental energy to focus on other aspects of their lives. As the famous author and motivational speaker Jim Rohn, said, “Time is more valuable than money. You can get more money, but you cannot get more time.”
Expertise: Financial advisors have extensive training and experience in financial planning and management. They are equipped to provide expert guidance and advice on a wide range of financial topics, including budgeting, saving, investing, retirement planning, tax planning, and more. According to a study, individuals who work with financial advisors are more likely to save for retirement and are more confident about their retirement prospects.
Objectivity: Financial planning and decision-making can be emotional and subjective. A financial advisor can provide objective guidance and help individuals make informed decisions that are in their best interest. For example, a financial advisor can help individuals avoid common financial pitfalls, such as impulsive buying decisions, by providing a clear and objective perspective.
Stress reduction: The financial planning process can be stressful and overwhelming, especially for those who are not familiar with the process. Delegating these tasks to a financial advisor can help reduce stress and anxiety associated with financial planning and management. A study by the American Psychological Association found that money is one of the leading sources of stress. By delegating financial tasks to a professional advisor, individuals can reduce this stress and focus on other aspects of their lives.
Choose the approach that is right for you by asking yourself this question
In what ways will my decision impact my ability to achieve the quality of life I desire?
This is not a financial decision but a life choice.
Vishal (Do-it-Yourselfer) – Why would I pay someone else to do what I can do for myself?
Indeed why?
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Amit( Delegator) – I pay someone else to manage my money so I can do all the things I can’t pay someone else to do: Excercise, spend quite time at home, take a vacation, grow personally, improve my professional skills, enjoy my retirement, volunteer my time to worthy causes, go to my kid’s school functions, meditate, read great books, have dinner with friends.
His mantra: ‘Why would I do anything myself that I could pay someone else to do?’’