To avoid paying for services you don't need, or working with an advisor who isn't right for your financial goals, choose the right person for your needs and your goals.
Are you interested in financial independence? Then one term you have to be familiar with is financial advisors.
The term "financial advisor" can be used to describe a wide range of services, from online robo-advisors to in-person traditional financial advisors. They can help you with a wide range of financial planning issues, from investment management to budgeting advice to planning for your estate.
What kind of advisor you choose will depend on what you have money for and what kind of help you want to get.
There is a financial advisor for every budget and financial situation. Here's a look at the 3 categories of financial advisors, and how to choose the right advisor for you.
Investing 101: The basics of Investing in Nigeria
Robo-advisors
A robo-advisor is a digital service that makes managing your money easier and costs less. You answer questions online, and then computer algorithms build an investment portfolio that fits your goals and risk tolerance, so you don't have to think about it. Sounds great, right?
What’s more, robo-advisors are low-cost, automated investment advisors that give advice. Most of them specialize in helping people save for their long-term goals, like retirement, by putting together diversified portfolios of exchange-traded funds (ETFs)
Using a robo-advisor service is good when: you prefer low-cost, quick investing, convenient and financial planning advice.
Online advisors
In the digital world, there are people who help others with their money. This is the next step up from a robo-advisor. An online financial planning service that lets you talk to real financial advisors over the internet.
A simple online service might offer the same automated investment management as a robo-advisor, but it might also let you talk to a team of financial advisors when you have questions.
Be INvolved: Join our community
With the online category, you’ll be paired with a dedicated human financial advisor who will manage your investments and work with you to build a complete financial plan.
Using an online advisor service is good when: you need specialised help but you cannot meet up with your advisor in person and you can afford to pay a little more for the advice.
Traditional financial advisor
Certified financial planners (CFPs), stockbrokers, registered investment advisors, financial consultants, and wealth managers are some of the traditional financial advisors. Each of these people can have more than one of these jobs.
Among other things, a CFP may also be a registered investment advisor. If you work with a financial advisor near you, you'll usually meet in person at a place near you.
Using traditional financial advisor service is good when: you need specialised help; your situation is complicated, or you want to meet your financial advisor in person. This is usually the most expensive of the 3 options.
Key takeaway
Remember this: the kind of advisor you choose will depend on what you have money for and what kind of help you want to get.
Video: Are you a saver or spender
To make the most of the information you’ve received, here’s what you do:
- Decide what part of your financial life you need help with.
- Find someone who can help you with that part (you’ve already done that by being here). Start by thinking about which parts of your money life you need help with. As soon as you sit down with an advisor, you'll want to be ready to talk about how you want to handle your money. For example, this could include advice on how to invest for your retirement, how to pay off debt, how to protect yourself and your family, and how to plan for your death.
- Keep in mind that financial advisors can help you with more than just investing. The best financial planner is the one who can help you set a course for all of your financial needs. Based on where you are in life, you may not need to do a lot of financial planning.
Don't go just yet…
We know that we're a little biased, but we think our community is the best way to start your journey towards financial independence. Take a look at this page to learn more about financial independence right away.
