Controlling Your Personal Finances While Running A Business

What Is The Right Role For A Financial Advisor?

Preparing for your financial future is about more than just investing and putting away cash. Even the most prudent person may not necessarily be taking in the entirety of the big picture when it comes to how they'll have the money to achieve their goals, and that's where a financial advisor can step in to provide guidance. If you're looking for someone to advise you, try to focus on how they'll fit into the role you need them to play.

Setting and Attaining Goals

It's easy to fall into one of two traps when shooting for a financial goal. Some folks just assume they're doing enough and that the compounding of time, work and savings will get them to their goals. Others overestimate what it takes to achieve their goals, ultimately depriving themselves of resources that could be used for other purposes.

With the support of a financial advisor, you can start charting a path toward each of your goals. If you're preparing to buy your first house, for example, your financial advisor can explain what the likely cash requirements will be, how to build up your credit to get a loan and how to plan for doing long-term maintenance on the house. A similar approach can be used in planning for retirement, building a college fund for a child and almost any other long-run goal that's going to take a lot of money to reach.

Keeping Up with New Rules

If you think about how much the rules that influence financial planning choices have changed over the last half-century, you'll quickly come to appreciate why it's often beneficial to have a professional keeping tabs on the changes. Tax rates have shifted multiple times during that span, as have the rules regarding what can and can't be counted as a deduction. It's flat-out difficult to keep up with your own life and also think about financial planning goals that might be decades off in an environment where new regulations may significantly alter your outlook.


When trying to find a professional to assist you, how they approach things means a lot. Someone who is less or more risk-averse, for example, is likely going to what to find a financial advisor who sees these issues through the same filter. Conversely, some people may prefer to find someone with a contrasting approach in order to keep their own financial tendencies in check.