Aseanoutlook.com – According to the people asking, the question of what is financial advice can have different meanings. Because they will depend on their needs and goals.
This includes getting your affairs in order to things like optimizing your existing investments and taking advantage of opportunities.
As such, the answer to the question of what is financial advice can help you achieve your goals sooner rather than later.
Because you’ll be getting advices from people who are professional and is an expert when it comes to finance.
What is a Financial Advice
Depending on your needs also, there are three advices that you can choose:
1. General Advice and Information
The question of what is financial advice can have different answers depending on what you need from it. And this is one of them.
This type of advice is an advice made without taking into account your personal situations, or needs including factual information in response to any questions you might have about your financial situation.
An advisor will help you translate any financial jargon or terms and explain the purpose and rules over different financial products.
For example, if you want to know how a salary sacrifice works, your advisor will give you a factual information about the matter, again without any bias towards your personal situations.
- Comprehensive Advice
The second kind of advice to answer the what is financial advice question is comprehensive advice.
This kind of advice is a personal one that looks at all areas of your finances on an ongoing basis. Your financial advisor will develop a financial plan that’s tailored specifically for your situation, needs, and goals.
Your advisor will also regularly review your plan to take into account any changing circumstances to ensure that you’re still on the right track towards achieving your goals.
- Focused Advice
Last but not least in the types of advice for the question of what is financial advice is a focused advice. While it’s not as personalized as the comprehensive advice above.
This type of advices still focuses specifically on your situations and needs in relation to the specific matter you’re asking question on.
This kind of advice also doesn’t take into consideration your other financial affairs. As such, they’re mostly suited for things like helping you implement a transition towards retirement, et cetera.
Do you actually need a financial advice?
After we’re done answering what is financial advice, it’s common for anyone to question themselves again with this exact question: do I actually need one?
The answer is highly volatile since it depends entirely on you as a person. For example, if you’re thinking of achieving a goal, but always get sidetracked over and over again.
A financial advisor that gives financial advice might be worth getting because they’ll make sure you achieve the goal that you set for yourself.
Another scenario where a financial advisor might be worth it is when you have an endless to-do list that almost never gets empty, leaving you no room or time to think about your personal finances.
Financial advisor can help and do your personal finance for you, and make sure that everything goes on alright.
It’s also worth mentioning that people take financial advices and financial advisor when they’re about to make a life-changing decision.
These decisions depend on each person, but things like early retirement buyout packages, selling your business, taking a lump sum over pension, starting social security, or even buying houses.
These types of decisions don’t offer a lot of flexibility to unwind the decision we made, as such, in order to make sure that you make the right decision, getting a financial advisor can help you solidify that decision, or even gives you alternative or options that might be better for you in the long run.
So, that’s all we can say for today’s question about what is financial advice, what are their types, and do you actually need them in your life to succeed.
Financial advices and advisors are one of those things that people can live without, but for some, it’s a very necessary thing to have in their life, so, always ask yourself these questions first.
Only take one when you think it makes sense for you to take. If you don’t need one, then don’t hire one.
That’s all from us. Thank you for reading this article and we’ll see you in another article next time.