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Question:

How important do you think having a financial advisor is?

For some, it could be the key between a happy retirement or crushing debt. In today's contributed post, we explore why it's worth having a financial advisor.

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If you are looking to make an investment, purchase a financial product, or plan for your future, the question of whether you need a financial advisor or not is something which is likely to pop into your mind.

It is also a question that requires a lot of thought as it depends on several factors unique to you and your set of circumstances, such as how complex your financial situation is and what both your short-term and long-term goals are.

Overview of the financial advisor's role

Professional financial services and advisors can be indispensable in certain situations, and wholly unnecessary in others. From general financial planning to specialist advice in areas such as mutual funds and pensions, financial advice comes in all shapes and sizes.

In most cases, financial advisors belong to fully-fledged firms such as Trust Point who offer advice in several different areas, and it’s always a good idea to go with one of these full-service firms as they generally have more experienced staff.

In short, though, if you dabble in any sort of investing or are involved in any complicated financial situations, it’s always worth having one on your side.

Related: 31 Life Hacks to Save Money Quickly

A financial advisor can you determine your investment strategy

If you’re thinking of investing in trusts, shares or mutual funds, you might feel confident enough to buy these without seeking advice.

However, these products are complicated and harder to understand than standard cash savings.

By not taking professional advice from a financial consultant, you may not be exploring other options that could easily be more lucrative.

There is also the inherent risk that you will end up buying a product that isn’t suitable for you at all and could hemorrhage your money.

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• How To Make Money: 2019 Guide
• This Is Where Millennials Should Invest Their Money

Get financial planning advice on mortgages and insurance

Although many people purchase insurance and mortgages without seeking financial advice, some of these products can be purchased online using comparison websites.

This convenience can sometimes backfire, especially for people who have zero financial experience.

Speaking to a broker before buying a mortgage or insurance product can easily help you get a better deal.

Also, it can help you to avoid some of the major pitfalls associated with buying these things blind such as higher interest rates and charges.

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Financial advisors can counsel you about pensions, 401(k)s and other retirement vehicles

Many people forget about their pensions until it’s too late. Whatever your pension setup is—solely state-provided, or chipped into by you and your employer—you should seek financial advice and guidance, especially if you are looking to boost your pension or merge pension pots.

Pensions are very complicated long-term investments and you need to be 100% sure that you fully understand the types of funds and situations you are investing in, and the risks that investing in said pension funds carry.

Your pension is your lifeline when you get old and retire, and it’s absolutely not something that you want to be putting at risk—hiring a financial advisor can avoid this.

Related: 

• Saving For Retirement: 2019 FAQ Guide
• Money Mistakes To Avoid In 2019

Find a financial advisor today

Far too many people take risks when it comes to their finances and investments.

But by having a financial advisor or financial planner, you can avoid unforeseen problems and even get access to far better rates.