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The Need for Financial Advisors

            How often does one think about money? These days it seems the world only cares about money and for good reason. Money makes the world go round and can make one's life a lot easier. One of the easiest ways to accumulate money is through investing. It is easy because you do not have to put forth any effort to accumulate more money unlike working for a paycheck. Buy a couple of stocks and hope the value rises over time. Of course, it is not that simple or everyone would invest in stocks and be rich. Investing takes patience and a lot of research. Some would say that investing all the money they have saved over the years is best left to a professional advisor; while others prefer to save the costs associated with having an advisor and invest on their own. However, the added benefits that come with having an advisor such as the professional advice, expertise, and life planning, make the fees worth the investment in the end. .
             First of all, it is useful to know how advisors are compensated for their advice. Many advisors are paid by sales commissions and marketing fees which are called loads (Do Financial Advisors Earn Their Keep?). Loads are just small fees that are attached to funds bought by an investor or a client through a broker to handle transaction costs. Brokers are not always advisors because brokers don't have to offer advice to clients, brokers only help them buy or sell certain investments. This is because brokers are not held to a fiduciary standard, which is putting the clients interests first (Do Financial Advisors Earn Their Keep?) This means that brokers make money by putting investors into certain investments that make commissions. This is a reason many people are trying to avoid using brokers and advisors that are not certified. Investors who pay extra fees to advisors and brokers that do not have their clients' best interests in mind waste lots of money each year, hurting their returns.

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