To Top

Want to Be Your Own Financial Advisor? Let’s Get You Started Already

Managing finances, if not handled correctly, could be a couple’s worst nightmare. Understandably, money is a sensitive commodity, and how you spend it says a lot about you.

For couples, finding the middle ground where money is concerned could be the difference between staying together and getting a divorce, proving just how vital this topic is.

Finances could be a couple’s worst nightmare

Most people are ever in the search for a financial advisor worth their salt, but have you ever thought of being your own personal advisor? And while you’re at it, make sure to have your significant other on board, just so that you are all on the same page.

Not That Easy

All the same, advising yourself on financial matters isn’t as easy as it sounds, as Dawn Ridler, a leading money expert, explains. There’s a lot that goes into making these huge decisions such as retirement savings, whether to take out an insurance policy, when to invest, how much to invest, the like.

As such, Ridler has a few words of advice if you’re willing to listen. For starters, she says that under no circumstance should you mix investments and insurance.

If you unfortunately have, do find a way of getting yourself out of it without being slapped with huge penalties. Looking at it critically, does it make sense for your investments to be pegged on your health?

And if you happen to already have a financial advisor, Ridler says that in as much as you may trust them, don’t always make decisions based on their word alone.

Well, she agrees that most of them will clearly advise on how all spheres of your life impact each other financially, but you also have to take a moment and see if what they tell you makes sense to you.

Take a moment and see if everything makes sense

Having done this and armed with all the facts, you can then make an informed decision, one that you can take full responsibility for no matter what happens. It doesn’t sound right to blame your planner if something goes wrong yet they had laid everything out for you beforehand, does it?

Life Insurance

As for taking out a life insurance cover, Ridler is of the opinion that in fact, there are a lot of factors that come into play. She insists that your cover should be tailored to exactly what you need, and be careful to avoid being “over-covered.” This way, you get to pay less premiums, and the extra amount can be pushed to either savings or investments, or both.

Saving for retirement is a difficult exercise, and Ridler concurs. Before determining exactly how much to put away, you have to define your future objectives, then lay out a plan on how these goals are to be achieved.

Saving for retirement is a difficult exercise

If you go to your advisor with this, this financial expert warns that most people in the profession use a pre-defined set of programs to set you on your path, but she feels that said programs have lots of in-built assumptions that may not be plausible in this day and age.

As such, you should carefully go through your plan with your advisor, making sure they understand where you’re coming from and where you’re going, and this way you’ll eliminate most of the variables.

More in Financial Adviser

You must be logged in to post a comment Login