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When and why to appoint a financial advisor?


When and why to appoint a financial advisor?
Earning money is difficult but maintaining and increasing the capital is crucial. Many investors lack the understanding of investments and financial products.

It's not possible to focus on all the financial products while doing the daily work simultaneously.The financial advisor is an expert who helps and guide in taking all types of financial decisions.


Identifying The Financial Advisor Requirement

The financial advisor is required at every point of time which are very crucial in life. It's not a matter of managing huge money and getting higher returns only but also for avoiding big problems and mistakes.

The situations when financial advisor is very much required are:

* When there is a requirement to plan for your child's career, financial advisor can help you plan and save. At present, fees for higher education are growing very fast.

To cater this, a systematic plan is required, otherwise it can lead to financial crisis in the future.

* When a person gets married or divorced his/her financial position changes totally. It is important to plan the same before finalizing such an important action. An advisor can help you plan for such situations.

* Retirement planning is the most important thing people must appoint a financial planner for. The financial planner can help them build a financial plan so that they can have a tension free retirement.

* If you own a business then a financial planner can help analyse and plan for your business development.

* An on-going health plan is essential especially after an age of 50. Along with that, a pre-plan for any risk is required to be taken.


* Financial advisor should be consulted to draw a valuable plan for health insurance and related issues.

* It is better to appoint a financial advisor to manage the tax related issues, than to get confused with the IT rules.

Why is a Financial Advisor Required?
* An advisor can help in many ways. The benefits are not limited up to a small bar.

* To reduce the financial risk

* To mitigate the inflation risk on investment.

* To maintain the risk and return ratio for a continuous growth throughout a career.

* Choosing the best from the various available financing alternatives as per the objectives of the investor.

* Designing a customized financial plan for investors to meet various important financial obligations at different stages of life.

How to Appoint a Good Financial Advisor?

Selecting a good guide is very important. There are many people who are in the business of financial advising. It depends on the ability and knowledge of advisor that how good he/she can guide. It is better to have an advisor who knows your objectives very well.

An experienced advisor has more understanding about the planning and has access to several options that can suit to your objectives. Financial advising is an on-going process.

So, appointing someone who can spend ample time in understanding your needs and help in growing your wealth is a right decision. The consultation fee is another aspect to check before appointing a financial advisor.


A financial advisor takes care of your money and adds value to it. You may do it on your own if you are able to find the options and analyse them well, but this needs a proper understanding, expertise and time.

Hence, it is always a better choice to appoint a financial advisor.

It is important to not rely on an advisor completely and keeping a watch on his advise, to avoid the chance of mistakes and misguidance.

The investment advisor must be certified and registered with SEBI as per recent guidelines. So it is important to take the services of an authentic advisor only.

About the author:
Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent 10 years in Equity research, Stock broking and Financial Consultancy Sector. He can be reached at

Read more about: financial advisor
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