Retiring Rich: Building Long-Term Wealth with a Financial Advisor
Delwin Graham & Eric Brown - Oct 22, 2020
Whether you're a business owner, retiree, or a professional looking to learn more about money management, financial advisors can be worth their weight in gold. Financial advisors are experts who can help you out with whatever money needs you have.
When you're trying to live the life of your dreams, financial literacy is foundational. Regardless of your station in life, it's important that you learn to generate wealth that will not only carry you the rest of your life but to also live on for generations.
Building long-term wealth on your terms is possible when you link up with a financial advisor who can help you. Follow the tips below to get the help that you need so you can retire rich and on your terms.
Understanding Why Hiring a Financial Advisor is Key for Building Long-Term Wealth
So, what makes hiring a financial advisor so critical? Whether you're a business owner, retiree, or a professional looking to learn more about money management, financial advisors can be worth their weight in gold. Financial advisors are experts who can help you out with whatever money needs you have.
Today, 53% of people in Canada are living paycheque to paycheque. A financial advisor can take you out of this lifestyle and grow your assets for years to come. Not only are these professionals an expert at allocating assets, but they'll also help you put together a high-performing portfolio that is diverse and able to stand the test of time.
Just as you wouldn't do heavy-duty plumbing on your own or look after your own medical care, don't lose money by trying to make all your investments without the care and experience of an advisor.
Handle Your Estate Planning Process Early in Life
Estate planning is a critical part of the wealth-building process. Advisors will help you put together a will, establish trusts, and get the right life insurance policy to take care of your future generations. This way, you won't have to worry about the wealth that you've accumulated getting lost at the time of your death.
Your will must consistently be updated throughout the course of your lifetime, and a financial advisor will steer you in the right direction. Handle your estate planning early in life so that you're not leaving your wealth in the hands of the government.
Build Long-Term Income with the Right Funds and Retirement Plans
Financial advisors can also assist you with your long-term finances, so you can retire rich and on your terms. You can look into RRSPs and TFSAs to secure your money for a comfortable retirement.
There are also several mutual funds that will grow your money with interest over the next several years. Some funds are more aggressive than others, and your advisor can help you choose between different managed funds and index funds.
They're also helpful when it comes to playing the stock market and figuring out which are long‑term investments and which you should sell for a quick gain.
Work Through Debt to Stay Financially Free
Securing your financial life also means tackling your debt head-first. If you're always in the red, you'll always feel like you're playing catch-up.
Aside from investments, financial advisors can help you put together debt management plans. Whether you need to knock out student loan debt or consolidate consumer debt, they'll offer you the advice that will get you to the other side.
Get a Handle on Your Current Living Expenses
Financial advisors are also helpful on a day-to-day level. These professionals can take a look at your income, assets, and liabilities, and they will let you know how much you can spend on a regular basis.
These professionals can carve out a budget that you can stick to over the course of the next several years. When you're not overspending, you won't have to worry about mismanaging your funds or ending up living outside of your means.
When you take the time to set goals you'll be able to live the financial life of your dreams. The advisors will take account of your financial life and will push you toward achieving whichever goals make the most sense for you.
Continuously Build More Revenue Streams
Instead of just managing your money, earning more should always be the goal. Advisors are also skilled at helping you grow your income by building revenue streams.
When you have an advisor, you'll get insight into the best ways to grow these streams and can take your portfolio to the next level.
Keep Building Wealth on Your Terms
Building long-term wealth is well within your grasp when you follow these strategies. As you can see, having the help of a financial advisor is an integral piece to the puzzle.