14 January 2022
 Categories: , Blog

Wealth cannot be created by chance. A person must make a conscious decision to create wealth by acquiring excellent habits, building a strategic plan, and faithfully executing the strategy until they achieve financial freedom. Many people are unaware of the importance of financial planning and management. Fortunately, those intending to undertake their wealth creation journeys can consult financial planners for reliable advice. Financial planners are experts in all elements of wealth creation and financial planning and management. They evaluate their clients' financial information, such as income, debts, assets, and liabilities, and they help them develop feasible financial and asset management strategies. The benefits of consulting a financial planner are discussed below:

Selecting The Right Investment Strategy

Most first-time investors make rookie mistakes. That being the case, new investors often lose their fortunes due to inexperience and bad advice. To determine what investments to make, one must have a solid understanding of the financial markets. For example, an investor must understand when to hold and sell a stock. For instance, new investors frequently panic because of capital market fluctuations. Thus, the investors end up trading stocks at the wrong time or buying equities for the wrong reasons. A financial planner has experience and knowledge of the capital market and can help first-time investors avoid investment mistakes. Thus, financial planners safeguard their clients' investments by recommending feasible options.

Creating and Expanding An Investment Portfolio

New investors often struggle to create or expand their investment portfolios. An investor must have a well-balanced portfolio for any chance of success in the investment market. Financial planners are familiar with numerous investment markets, such as bonds and shares. They also have access to market research and advise clients on updating their investment portfolios. Financial planners assess their clients' needs and choose which markets to include in the investment portfolios. Financial planners also undertake asset allocation based on their clients' preferences, ensuring balanced investment portfolios. 

Minimizing The Amount Of Tax Levied On Investments

Taxes on investments and assets are sometimes high, defeating the point of investing your hard-earned money. High taxes result in low returns since taxes reduce an investor's profit. A competent financial planner recognizes the need to optimize returns on investments and, thus, arranges the client's finances so that the tax is kept to a minimum. Moreover, they assist clients in lowering their taxable income while keeping clients updated on the latest tax regulations and revisions. Thus, new investors should consult financial planners and exploit their expertise to grow their portfolios.