When it comes to investing your money, you will want to get advice from an expert. Being financially stable will require work on your part and obtaining guidance from a professional in this field. It's ideal to know some things about financial advisors if you're interested in making the most of your money or ensuring the safety of it.
Who are financial advisors?
Financial advisors are individuals that have undergone the necessary amount of training to be labeled an expert in the area of finances. This is an individual that, for a fee, will provide you with a service that includes making the most from your money.
There are varying situations in life that will require the need for a financial advisor for optimal long-term results.
Making life changes
One of the ideal times to consult with this financial expert is if you're making significant life changes. Getting a divorce, getting married or moving may have a serious impact on your financial health, and consulting with a financial advisor is crucial for making the right move.
Investing money
There is a wide variety of ways you can invest your money these days to hopefully make more money. Being able to put your money to work for you is ideal and should be considered at the earliest stage of life.
Listed below are some of the common ways to invest your money:
- Mutual funds – This consists of an investment program that involves shareholders from various companies. There are varying risks when it comes to mutual funds and the fund you select can range from a small risk to a higher one.
- Stocks – There are two types of stocks, and these include common and preferred. Stocks are a security that allow you to have part ownership in a company.
- Certificates of deposit – One of the least risky ways to invest your money is by getting a certificate of deposit (CD). This can be purchased through your local bank, and the amount of return you receive on your investment will depend on the value of the stock and the duration you hold it.
These are some of the most popular investment types that should be discussed with your financial advisor. There are many others that can enable you to increase your income as well.
Inheriting money
One of the most critical times in life when you may want to get the advice of a financial advisor is when you inherit money. Being able to put this money to work for you and making an income off of it for the long term is ideal.
However, a study conducted in 2012 at Ohio State University's Center for Human Resource Research showed that only one-half of the individuals receiving an inheritance save it.
Relying on a financial expert to enable you to increase and maintain your finances over time can be extremely helpful for you. Be sure to consult with an individual that has these qualifications when necessary during various stages of your life.