Get advice!: There are plenty of reasons to hire a financial advisor in Spain, writes Peter Dougherty

HAVE  you thought about hiring a financial advisor, but not done so? You are not alone. Many of us put off the decision. Here are some of our reasons:

We think we’re not wealthy enough

It is true that many financial planners have portfolio minimums. But some firms (where I work being one of them) accept new clients regardless of how much they invest. At BISSAN Wealth Management, we do so because good financial planning is much more than just investing. 

We don’t think we have enough time 

We might believe we don’t have sufficient time to deal with a financial planner. Ironically, a good financial planner will save us time in the long run. An electrician will likely fix our lights in less time and do it more effectively, the same is true for a good financial planner. We might have to spend time talking to a planner initially as they try to get to know our financial goals and circumstances, but there’s little time commitment necessary once they’re up and running.

We think we can do it ourselves

You probably can do it yourself. But be honest, will you devote the time and energy to analyze and then decide on important financial choices, and later monitor your results and make periodic adjustments? Are you ready to be both the mechanic and the driver of your investment vehicles, and the person who talks yourself out of buying crypto at midnight?

There are a variety of reasons for hiring an advisor.  Some people like to manage their own plan but hire a financial planner to serve as an objective third party to gauge whether they are on track.  Others find they do not enjoy the planning process and have little patience for it — they happily turn over the responsibility to a qualified advisor.

We don’t think we can afford an advisor

Many of us will make an investment if we expect the future benefits will be greater than the initial expenditure. The same should be true of hiring a financial planner.

Studies have shown that those of us who hire a financial planner achieve better financial outcomes and enjoy greater personal well-being than those who don’t. 

Many of these benefits result not from picking outperforming investments, but from helping clients choose a suitable asset mix, avoid behavioral mistakes, improve tax efficiency, and achieve comprehensive planning goals.

We view financial advisors as ‘salespeople’ 

Let’s face it, many financial advisors are salespeople. But many are not — instead, they are interested in our goals, ambitions and values.  

If you are looking to hire an advisor, be willing to ask lots of questions. Has the advisor obtained credentials such as the European Financial Planner certificate in Spain or the Certified Financial Planner® certification in the US? Is their firm authorized and supervised by the CNMV (Comisión Nacional del Mercado de Valores), the financial regulatory authority in Spain? What is the process of working with the advisor? Look for someone who has an established process to help you evaluate your needs, anticipate changes and help you adjust course as needed.

We face too many choices

Some of us avoid hiring a financial planner simply because we feel overwhelmed by having so many choices. If so, here are a few practical steps we can take:

    1. Pick two or three financial planners to interview.

    2. Set up a free video-call consultation with each to learn more about their methodology, how they charge, etc.

    3. Choose a planner whose services align with your circumstances and with whom you feel comfortable personally. 

In conclusion, we can absolutely go it alone financially without the help of a financial advisor. Just like we can cut our own hair. It might work, but the results are usually better when we let a professional handle the sharp objects. 

Peter Dougherty is a Financial Planner at BISSAN Wealth Management in Spain. He holds an MBA in finance from Columbia University in New York and an MS in Spanish taxation (Máster en Fiscalidad y Tributación) from Nebrija University in Spain. He is a European Financial Planner (EFP) in Spain and is CERTIFIED FINANCIAL PLANNER™ professional and a Chartered Retirement Planning Counselor® in the United States. 

For more information:  https://www.financial-planning-in-spain.com

Click here to read more Business & Finance News from the Olive Press.

Click here to read more Business & Finance News from The Olive Press.