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5 Ways Financial Advisors Can Guide You Through the Pandemic

Here's why you should get a financial advisor.

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Lessons taught in 2020 have not gone to waste. People are more eager to learn and try to be financially aware, even seeking professional advice for money problems that can't be handled. Dire times call for smart moves, and financial expertise has become a valuable skill that millions are striving to acquire.

Many people have decided to take charge of their finances by diving into investing guides and budgeting techniques to manage their life savings. Though it is very healthy to be financially aware, DIY-investing while learning about stocks, retirement funds, and real estate may still backfire. You can turn out to become your own enemy if you try to pursue financial aspirations with incomplete knowledge of proper investment and savings options.

We are treading in uncharted waters, and protecting your money comes before trying to grow it. If you are not sure about your next money move, how much to save for retirement, or the right stocks to pick, an in-house fiduciary advisor can be a permanent solution to your long-standing financial dilemma. Here are 5 strategies that fiduciary advisors are currently using to guide investors through the pandemic.

1. Limiting Psychological Bias

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People are irrational and emotional beings, assigning emotions to financial decisions that often lead to losses and disappointments. People develop certain biases over time that pour over to their investing instincts. Have you ever played it too safe and missed out on great investment options because you were too afraid to lose money? Do you tend to follow the crowd blindly in fear of missing out on great returns? These are common biases that lead to stunted growth.

A fiduciary advisor is bound by law to look out for your financial security and prevent you from making emotionally-triggered money moves. They will coach you so that you can get rid of fear-based investing instincts. If you ever decide to work with a fiduciary advisor, know that they should be the ones dictating portfolio allocations. It is impressive to notice how a financial advisor can improve your emotional intelligence.

2. Saving a Light-Year

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People are known to irrational and emotional beings, assigning emotions to financial decisions that often lead to losses and disappointments. People develop certain biases over time that pour over to their investing instincts. Have you ever played it too safe and missed out on great investment options because you were too afraid to lose money? Do you tend to follow the crowd blindly in fear of missing out on great returns? These are common biases that lead to stunted growth.

A fiduciary advisor is bound by law to look out for your financial security and prevent you from making emotionally triggered money moves. They will coach you so that you can get rid of fear-based investing instincts. If you ever decide to work with a fiduciary advisor, know that they should be the ones dictating portfolio allocations. It is impressive to notice how a financial advisor can improve your emotional intelligence.

3. Estate Planning

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What you do with the assets you've worked for all your life is something you get to choose. This might be a house that you bought or a business that you owned for 20 years.

The pandemic has made estate planning very important. For most, a will and term life insurance can suffice since you can keep making changes as needed. If you have estates worth millions, it would be vital for you to work with a fiduciary advisor who has legitimate estate planning experience. Knowing that your wishes will be fulfilled will bring you peace of mind.

4. All Around Financial Solution

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It would help to interview several vetted fiduciary advisors first to see which areas of your finances they can help you with. Here are the different kinds of financial advisors you might come across:

  • Investment Specialists
  • Financial Planners
  • Tax Professionals
  • Financial Counselors
  • Wealth Managers

Many advisors showcase skills in multiple aspects of financial planning, which would be even better if you have different financial goals.

5. Retirement Planning

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What's the first thing you want to do after retirement? Go on a world tour or open your own business? Whatever it is, you need to have multiple income streams to turn those dreams into a reality. Experts from Fidelity Investments believe that you need 10 times your salary to cruise smoothly for decades in retirement.

Investing in a financial advisor is a choice to protect your money in the long term. They can curate a detailed retirement plan for you with realistic goals and timings so you'll always know what to expect. Advisors will know the right funds for your 401(k) and when to tap into Social Security, as well.

If you don't know where to start looking for fiduciary advisors, the Internet's most used financial technology website, SmartAsset, is a safe bet. After you take a short online quiz, their concierge team will connect you with up to three vetted and nearby fiduciary advisors within mere minutes.

Get matched with a financial advisor today and get the peace of mind you deserve!

The contents of this article is for informational purposes only and does not constitute financial or investment advice. It's important to perform your own research and consider seeking advice from an independent financial professional before making any investment decisions.

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