What Financial Advisors Do: 4 Typical Scenarios


The role of a financial advisor is multi-faceted. They can be helpers in times of financial crisis, planners in times of great wealth, and anything in between. Depending on where you are in life, you could require a financial advisor for hundreds of different scenarios. Financial advisors will be up-to-date with all current financial market trends, the best offers from banks, investments, debt management, and so much more. Below we have for you four of the most common scenarios people reach out to financial advisers for along with how a financial advisor would do in that situation. 

1. Helping With Debt

Financial advisors are experts in dealing with debts. Whether you are in a huge amount of debt or just have a credit card you can’t seem to pay off, they will know the best ways to help you clear that debt. In the most simplest of terms, a financial planner will add up all your debts whilst considering their interest rates. They will then look at your income and help you make a budget to pay off your debts quicker. They could also help you get a debt consolidation loan to place all your debts in one simple payment. There are other solutions for those in higher levels of debt such as IVAs. An IVA from Jubilee2000UK.org, for example, can clear some of your debts and give you a manageable monthly payment to deal with. This is a better alternative than bankruptcy but will still affect credit score or rating. A financial advisor will tell you if they think a solution like this is right for you. They will take into account what your future plans may be and let you know whether a voluntary agreement like an IVA would suit you in the long-term.

2. Planning For Retirement

We all love the idea of retirement but we don’t all plan for it properly. Many of us have small personal pensions which may not give us the retirement we all dream of. A planner will help you start to put aside more money – and put it in the right places – so that you can retire earlier and with more money. Maybe you have a property that can be sold and the money invested into a pension, or maybe you have a couple of pension pots from old jobs that could be combined into one. There are many smart ways to save for retirement that 99% of us don’t do. Ask a financial planner to give you advice on retirement and see how you can speed up the process.

3. Budgeting To Help Reach Goals

Is there something you’ve always dreamed of owning? Do you want a bigger house? Maybe there’s a classic car or boat you’ve got your eye on. Whatever your financial goals are, a financial advisor is a perfect person to seek advice from. They can help you release funds from your home or funnel more money into short or long-term savings goals. In some cases, the simple art of writing out a budget is enough to show you exactly where your money needs to go to help you reach goals. It isn’t rocket science but having someone explain it all to you can be the kick you need to finally start saving properly.

4. Dealing With Investments

Whether you have an ISA, savings account, some penny stocks, or a whole host of investments, a financial advisor is the best person to talk to about where your money is best placed. As we said earlier, financial planners follow current markets, interest rates, and trading news. If you have money spread across various pots, they may advise you to place it all into one investment. Or, if you are ready to start investing some of your income, your financial advisor can walk you through how to get started. Obviously, advisors are not stock traders, so they can’t advise you on high-stakes day trading, for example, but they can certainly help you plan and place your investment pots better.

As you know, these are just four examples of what a financial advisor may do for you. If you have any queries about mortgages, banking, investing, debt, or finance in general, a financial advisor will be able to help you. It’s also important to say that financial advisors are professionals and are not there to judge you or your money issues. They have seen it all before! So, no matter what situation you find yourself in with your money, reach out to an advisor if you feel you need some advice or professional expertise.


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