Ways a financial advisor can aid you

We call on professionals for a variety of needs: when we need something fixed in our homes, we hire a plumber or carpenter; for renovation, we reach out to a contractor; if we get sick, we turn to our doctor. But what many of us tend to take for granted is actively seeking out a financial advisor. Having one allows for a huge advantage in terms of sound money management and achieving financial success, says CPA and financial counselor Steve Sorensen.

Simply put, a financial advisor will aid you in making the most out of your existing capital. He or she will aid you in a variety of money management needs: from identifying/tracking your spending habits and mitigating the impact of tax and growing your investments to reducing your financial risks and ultimately achieving both short- and long-term financial goals.

A good financial advisor should also be able to give you various advice on saving, what you need to do differently to optimize your income, the types of retirement accounts you should pursue (like Roth and IRA), mortgage and insurance types to have, how much to maintain for an emergency fund, and the overall rate of return you’d need to achieve your objectives over a given period.

Some financial planners even offer investment management services, adds Steve Sorensen. They can advise you on the level of investment risk that’s appropriate for the different types of accounts that you have.

Steve Sorensen is a Certified Public Accountant who gives financial counseling to a wide range of clientele in both the public and private sectors, while providing companies with strategies on avoiding employee embezzlement. For more reads on finance, go to this site.