A boat without a set destination is liable to float along the entire ocean and bump into anything that comes it’s way. Life can be hectic and throw us many curve balls that we had no prior knowledge of which rock our financial foundation we’ve created for ourselves. All great leaders in history have proclaimed that the war is won in the planning rather than the battle itself. Much in the same way, financial success and abundance is achieved through proper disciplines and planning. The ‘guide’, for lack of a better term, that aims your financial sail boat in the right direction is a financial advisor.
Alan Moore, the creator of Serenity Financial Consulting, advises that an individual should have a game plan of what they would like to do with their money before setting up a meeting. Are you looking to diversify your portfolio? Are you trying to get advice and information about when and where to invest your money? Or are you simply seeking general advice on what to do with your nest egg?
On top of this, it’s critical to your success that you build up a relationship with your advisor. Not only do you need to learn how your advisor will be compensated for their time (hourly rates, percentages, etc.) but you need to build trust in that person. Much like the romantic relationships in a persons life, we need to establish communication with the person we’re trusting with our fortune. Dig beneath the surface and find out what type of strategies your advisor likes to take. Are they a long term or short term investor? Have they managed clients in your financial bracket before? How long and how much experience do they have in the field?
To summarize, the sooner you can meet with a financial advisor the better. Your early 20’s are a perfect time to look for opportunities to invest, as well as where you can cut back. At this age you’re starting to build a small financial sum that can grow into wealth as you age and as the financial system goes through the ups and downs. The economy and monetary value of your capital fluctuates as time progresses. According to Business Insider if you would have invested $1,000 in 1964 with Berkshire Hathaway (Warren Buffet’s Company) you would have made a total of $10,500,000 as of today. This is clear evidence that the best age to seek a financial advisor is right now! The longer you wait, the more the market changes.