How a financial advisor can help you achieve your life goals

MANILA, Philippines — In today’s turbulent economic times, it pays to plan ahead when it comes to your finances. Even with a steady income, you never know what life may throw at you.

Factors like high inflation and the rising costs of gas and goods can negatively affect your savings. One way to manage your money even amid uncertain climate is by investing it with the help of experts, like a financial advisor. 

Luckily, there are a lot of different products and options available now for someone willing to invest, all of which can be optimized depending on your needs. This is where a financial advisor, a financial expert, can step in and help you decide.

From explaining the different plans you can avail of, to informing you about the different ways to optimize your policy, your financial advisor can be your best friend in making your money work as hard as you do. Working with a professional is especially important if you have limited knowledge when it comes to investments and if you have a busy schedule.

According to AXA Philippines Head of Distribution Learning and Development JF Salazar, here are the ways a financial advisor can help you manage your finances:

1. They can help you understand your financial health

One key role of a financial advisor is to help you understand your financial health, which is the state and stability of an individual’s personal finances and financial affairs.

This can include looking at your assets and liabilities, income and expenses. You can also mention other income sources, as well as other short- and long-term financial obligations so that these, too, can be taken into consideration. 

2. They can help in creating a financial plan based on your goals, risk appetite

All financial plans should begin with a goal – whether saving up for your retirement, growing your wealth or saving up for a big purchase.

Discussing this goal will help your financial adviser determine the investment horizon of the plan or recommend what fits your budget.

"A trained and licensed financial advisor should be able to help you get started in your financial planning journey by helping you identify your financial needs or priorities – for example, education of your kids or planning for your retirement. They should be able to recommend a financial solution based on your priorities,  budget and age,” shared Salazar. 

Another aspect a financial advisor will look at is your risk tolerance, which is the amount of risk or the degree of uncertainty that you are comfortable with.

Your financial advisor would normally present a questionnaire that will help determine your risk profile and understanding of different investment products. Knowing your risk profile will help determine the asset class or type of fund suitable for you. 

3. They can help you monitor and maximize your investment 

Salazar said that once you’ve signed off on a policy, your advisor can help you stay on track and accomplish your financial goals for getting insurance or investments.

“Your financial advisor is your lifetime ally in your quest to achieve your life goals. For investment, he or she can update you on how much money your investments made and even recommend a plan or solution should you want to accelerate your savings to attain a specific goal,” he explained. 

Meanwhile, if you got an insurance with an investment plan, your financial advisor will be able to help you ensure that your policies are up to date in terms of payments so you remain protected, help you increase your protection coverage due to inflation and help you file and get a claim.

Your advisor can also walk you through the policy contract so that you would know the full inclusions of the product you purchased. This is the best time to ask questions about how your funds are being used and the benefits included in your plan, as well as the fine print. 

A policy review exercise should be done at least once a year so that your financial plan will always be up to date for every life stage change (single to married, married to having kids, etc.) and priority change. It’s also important to share with your financial advisor if you anticipate any significant life changes that would impact your finances 

During times of volatility, your advisor can also share financial advice to help you manage market impact or even leverage the opportunity. 

“Don’t panic when the market falls. One should consider these events as buying opportunities. Invest in assets or funds that match your risk tolerance,” shared AXA Philippines Chief Investment Officer Anthony Garces.

Managing your investments can be a tedious endeavor, but it need not be. With the right balance of seeking professional guidance from an advisor combined with your own due diligence, financial wellness and preparedness are within your reach.

To consult with an AXA financial advisor, visit axa.com.ph/appointments.