Recent studies show that 34% of Americans have no long-term financial plans. 39% of Americans have no savings aside from a retirement package. A staggering 56% of people lack a monthly or yearly budget. In the confusion of the Great Recession, Americans have been forced to spend more while saving less. Fortunately, a growing number of financial advisors in Maryland can help. This means families can stop treading water and find the peace of mind that comes with economic stability. Below are some of the advantages of employing a financial advisor.
Many people feel that when the don’t have enough money, a budget is a waste of time. After all, why budget what you don’t have? A financial advisor will quickly dispel this myth. They show how careful budgeting can reveal savings that weren’t initially apparent. They show families that the reality of their financial states are not as dire as they once thought. Financial experts have a deep understanding of budgeting, retirement plans, tax laws, and mortgage refinancing. Because they understand collection laws, they can be advocates. They will help families find lawyers who will help them through debt reduction and mortgage renegotiation.
Many families do not consider hiring a financial planner because it costs money. However, many advisors have flexible payment options. Some are fee-based, which means they charge an initial fee for their services, and only collect more if their plan leads to an improved economic situation. Fee-only planners charge fees for whatever services they render. This second type of payment is more versatile. If a planner is only needed once, the customer pays once. If services are ongoing, customers will pay a continual rate that generally stays the same. Another advantage of fee-only payment is that customers know exactly what they are paying for, and how much they are paying each time. In either case, clients save money.
Commission-based advisors only make money if a sale is successful. Their payments are built into the sale of assets. Occasionally, a small fee may be assessed at the beginning of the process, but even then it may be covered through the commission.
A financial advisor can assist with any type of situation. Whether families are setting up a college fund, planning for retirement, managing investments, paying off back taxes, or arranging an inheritance, financial advisors have the knowledge and resources to help. They can help reduce the stress of the present situation while ensuring peace of mind in the future.
Financial Planning 