Tranel Talks Column

3 Top Benefits of Engaging Financial Planning Services

It’s counter-intuitive to work so hard for money without a sound financial plan. Even if your career pays top dollar, you may find it hard to make your money work for you and generate maximum income. The good thing is that you can engage financial planning services and have an experienced financial consultant help you invest and manage your money.

These are the benefits of engaging financial planning services.

1. Financial Consultants Help You Develop Wealth-Accumulating Strategies

It’s not enough to just have money sitting in your savings account because you don’t have time to invest it somewhere else where you can get a better ROI. Especially if you’re a young professional, you’ll miss out on some prime investment opportunities in the course of your career. The biggest gains in investing are long-term. As such, having a wealth-accumulation plan earlier on in life will yield better returns in the long-term. This is where financial advisors save the day.

When you seek financial planning services, you’ll get the best financial advisors to help you come up with a good investment plan. A good financial consultant will advise you on the best retirement accounts to use, how much to put in your savings account and emergency fund, and the type of insurance that best suits your needs. Leveraging their investment experience, financial consultants will advise you on the best places to invest your money.

2. Financial Planning Services Help You Protect Your Assets

After helping you make sound investments, the top financial consultants will help you manage and protect your wealth portfolio. It’s one thing to create wealth, but it’s another thing to protect and manage it well. One poor decision can wipe out your entire investment portfolio. If you make investment decisions based on emotions or news headlines, it’s easy to undo the gains you’ve accumulated for years. As it’s famously said — a small leak can sink a big ship.

Luckily, financial advisors will guide you when making investment decisions so you can keep and grow your wealth. Being professionals, consultants will not make financial decisions based on fear, panic, or what the local dailies suggest. Just like creating money, managing and protecting your wealth requires sound and well-informed decision-making.

3. Financial Consultants Advise You on Taxation

Taxation is one of the most important aspects of investing. If you’re not well-versed with the taxation rules and regulations that touch on your investment portfolio, you may find yourself on the shorter side of the stick. If you don’t factor in taxes, you may end up losing all of your profits to taxation. Worse still, you may find yourself on the wrong side of the IRS or your local state.

That is why companies that offer financial planning services employ qualified accountants to help them deal with taxes. Even when you’ve started your investment journey on the right foot with all of your taxes in order, changes in tax regulations along the way may have varying implications on your investment portfolio. While you may not keep up with the frequent changes in tax regulations, your financial advisor will. Without professional tax advice, you may be overburdened by taxes and lose a sizeable chunk of your profits.

Who Should Engage a Financial Advisor?

You need a financial plan for your life whether you’re making an average salary, earning big money, or if you’re a high net worth individual. Sadly, many people have no solid financial plans. Worse still, one-third of Americans have zero retirement savings today, and 50% have less than $10,000 in their savings accounts.

Financial planning services will guide you on how to invest and earn more income and also help protect and manage your wealth. Financial and wealth management advisors can help you expand your investment portfolio and manage risk so you don’t lose most of your money along the way. When selecting a financial advisor, prioritize those with extensive experience and an excellent reputation.

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