Rathandeep – Finance Coach for Women

Why Do We Need Financial Advisors?~


We as humans often have this mindset, why we need to spend money when we ourselves can do. And the same mindset we can experience when it comes to investing. Why pay for financial advisors when we could manage our money ourselves?

In addition, we also think we have access to plenty of information on the web. Then why we need financial advisors? But, the information is so vast that we might miss out few points, which might be important.

Before we look into why we need financial advisors, Let’s answer these questions:

Do we fix our own air conditioner, do we repair our physical appliances on our own, do we fly our own plane?


We all seek for professional help who are more educated and experienced. And we feel contented with their services. The same will apply to our finances. We need someone who is a pro and can help and guide us through.

-Planning ahead can help us work toward financial goals and help us prepare for any unexpected challenges.

-Do you plan to retire one day? Maybe get married or go to college? How about paying down some debt? May be buying a home? These are all reasonable and attainable financial goals. Financial advisors try to understand your needs & goals and accordingly draws a plan to fulfill it.

-The goals need to be SMART – Specific, Measurable, Achievable, Realistic and Time-bound.

-Even while drafting financial plan, you have to chalk out goals that are achievable keeping in mind factors such as your income, expectation of return and goals. And a financial advisor would help you do this.

-Market keeps fluctuating and financial advisors are well equipped with tools and strategies to keep you on track.

- Even when your investments have been put in place and are running to plan, they should be monitored in case market developments or abnormal events push them off course.

-You can ask a financial adviser to keep a watchful eye on your investments.

-They can assess their performance against their peers, ensure that your asset allocation does not become distorted as markets fluctuate and help you consolidate gains as the deadlines for your ultimate goals move closer.

-We may not have access to all investment options which is suitable as per risk return appetite.

-So once the goals are identified, financial advisors will help in choosing the appropriate financial instruments.

-Your advisor would help you choose the appropriate financial instrument based your risk-return requirement and match it with the appropriate financial instrument and help in achieving the financial goals.

-He/She will make a detailed assessment of your attitude to risk before making recommendations. They will also ensure you don’t put all your eggs in one basket but also helping you diversify not only across asset classes but also across accounts, individual funds and product providers.

-Competent financial advisors are qualified. They undergo several trainings and carry certifications to secure the title of a financial advisor or an investment advisor.

-Experience really is the best teacher. A good financial advisor has weathered the ups and downs of the market and other various investment vehicles, time to time.

-It is better to work with a professional who can manage your wealth under different circumstances and variables in the best manner possible.

-A financial advisor brings with him/her, expertise about the financial markets as well the experience on to handle financial problems and crises. And thus, engaging a financial advisor to help with building a portfolio, chalk out your goals and help track it, could be a good idea.

-Once your investment plan is in place, you’ll receive regular statements from your advisor updating you on your portfolio.

-The advisor will also set up regular meetings to review your goals and progress, and to answer any additional questions you may have.

-A financial advisor helps you monitor and reassess the investment performance as you may not always have the time to do it. Regular monitoring of your investment portfolio is necessary to ensure alignment of your investments with your financial goal.

-An investment portfolio needs review and reallocations depending on the market situation and changing needs. The need for portfolio revision arises when an individual has some additional money to invest and wants to have change in investment goal.

-Depending on the cash flow, an individual can modify his financial goal, eventually giving rise to changes in the portfolio i.e. portfolio revision.

-In such situations, an advisor would suggest revisions on the basis of his expertise and market situations.

-Some people think that a financial advisor’s only job is to invest money. While that is one of their responsibilities, it is not the only one. They can also work with you on a wide range of other financial tasks:

-Rebalancing your investments.
-Tax planning.
-Estate planning.
-Long-term planning.
-Spending strategies.

Although there is a plethora of investment information on the internet, too much information is not necessarily a good thing. How do you determine what information is good? Do you have the time or the background knowledge to sift through this vast amount of material? A good financial advisor can do all the heavy lifting for you, so you can spend more time doing what is most important to you—living life.

Life is busy and there’s no doubt that your day is full of stressors. Working with a financial advisor can help alleviate some of those worries.

For example, when a doctor appoints a financial advisor for himself, he/she would be able to spend and focus more on research of new medicines and techniques in his/her field wherein the financial part can be taken care by the financial advisor who in turn will show his/her expertise. Thereby resulting in a productive result for both the professional with greater benefits.


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