{"id":53047,"date":"2020-10-27T10:26:58","date_gmt":"2020-10-27T17:26:58","guid":{"rendered":"https:\/\/www.creativecircle.com\/?p=53047"},"modified":"2020-10-27T10:26:58","modified_gmt":"2020-10-27T17:26:58","slug":"should-freelancers-get-financial-advisors","status":"publish","type":"post","link":"https:\/\/www.creativecircle.com\/blog\/should-freelancers-get-financial-advisors\/","title":{"rendered":"Should Freelancers Get Financial Advisors?"},"content":{"rendered":"

Being a freelancer is a balancing act. Freelancers need to make sure they\u2019re landing enough clients without taking on too much work and navigate hitting deadlines to get paid, all while maintaining a work-life balance<\/a>. It\u2019s important to get finances right, but they can be time-consuming and overwhelming. An alternative solution is to find a financial advisor. Are they worth the money, though?<\/p>\n

According to a Pew Research Center<\/a> report, self-employed Americans and the people that work for them account for 30% (44 million) of the U.S. workforce. Freelancers span across every industry from graphic design to writing, and even construction<\/a>. With a large portion of the population identifying as freelancers, it\u2019s important they have resources available for their financial goals. As a freelancer, here\u2019s how to decide whether or not you should take the plunge and get a financial advisor.<\/p>\n

\"""\"<\/a>What is a Financial Advisor?<\/h3>\n

Simply put, financial advisors help manage your wealth. The word \u2018wealth\u2019 doesn\u2019t have to imply large dollar amounts. When talking about financial advisors, \u2018wealth\u2019 applies to your collective savings or assets.<\/p>\n

Financial advisors can provide a variety of services including tax strategies, investment management, health and life insurance, retirement planning, and more. The biggest distinction between a financial advisor and a stockbroker or tax accountant is that advisors provide guidance and planning to help you achieve your overall financial goals.<\/p>\n

There are two distinct types of financial advisors: fiduciary and non-fiduciary<\/a>. Fiduciary advisors must be Registered Investment Advisors<\/a> and are legally required to act in the best interest of their clients. Fiduciary advisors are mandated to advise the client to act in the way they would if they had the proper knowledge and resources. A non-fiduciary, or typical financial advisor, may be pushing their own agenda or can be incentivized to promote products that give them a commission.<\/p>\n

How Can Finances Pose a Problem to Freelancers?<\/h3>\n

The idea of having a trained professional oversee your finances sounds like a great assurance to many freelancers, but that service comes at a price. Whether they charge an annual fee, an hourly rate, or charge by \u201cassets under management<\/a>,\u201d the reality is that financial advisors can be costly.<\/p>\n

Many freelancers are deterred by the prospect of a financial advisor due to the natural unpredictability of their income. Freelancers are typically paid on a contract basis and are subject to \u201cfeast or famine<\/a>\u201d income cycles. Budgeting for monthly bills like rent, utilities, groceries, and daily expenses is inherently more difficult without the security of a steady paycheck.<\/p>\n

As a Freelancer, Do You Need a Financial Advisor?<\/h3>\n

There isn\u2019t a \u2018one size fits all\u2019 answer. Finances are deeply personal and so are the ways we choose to manage them. To make the best decision for you, focus on what savings and assets you currently have available and your financial goals.<\/p>\n

Pros of Financial Advisors<\/h4>\n