Becoming a self-made millionaire is no easy feat. It takes dedication, smart investments and often outside help from professionals like financial advisors.
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While skilled investors can build wealth on their own, even the savviest benefit immensely from partnering with financial advisors. They can provide the guidance needed to help manage your money and set you on the path to millionaire status.
Marvin Magusara, co-founder of Retaining Wall Supplies, explained three ways financial advisors helped him become a millionaire.
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Guiding You on the Path
Good financial advisors do more than just create financial plans for their clients; they actively guide those clients along the path to success. Their knowledge of the market minimizes wasted time and money on dead-end investments.
“Financial advisors serve as guidеs on my path to financial success,” Magusara explained. “They did more than just set out this route; they also guided me through the financial darkness.”
A financial advisor can spot promising opportunities that you would have missed on your own.
“These professionals have a keen eye for recognizing chances that I would have overlooked, such as hidden investing gems,” Magusara said. “They tapped me on the shoulder and said, ‘Hey, look here, this could be big.’ It was their insight that frequently converted my possibilities into strong yes.”
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Providing Risk Management
In addition to identifying opportunities, financial advisors also help protect clients from undue risk. It’s easy to get caught up in the excitement of a potential investment. This is when your advisor can step in to assess the risks objectively, spotting red flags you might miss. Advisors act as voices of reason to keep clients grounded when emotions take over.
“My advisors played an important role in damage control,” Magusara said. “When I became overly excited about an unsafe organization, they were the calm voice of reason, advising me to stay on the ground. Their risk assessment skills were important, allowing me to avoid bullets that I hadn’t prepared for.”
When you’re seeking to grow your wealth, avoiding pitfalls is just as important as seizing opportunities. Self-made millionaires benefit enormously from advisors performing this due diligence.
“One of the most notable lessons that I continue to learn is that every dollar spent on finding expert advice and guidance is totally worth it,” said Peter Dubois, general manager of Find by Plate. “Truth is there are many financial mistakes with greater potentials of becoming financial sinkholes that I was seldom aware of until my advisor helped me realize and navigate these situations. And frankly, this is one of the ways my financial advisor has shaped my wealth-building journey and one way others can benefit by going to a financial advisor.”
This protection from unseen risks can have a huge impact on your ability to build wealth over time. Having an advisor is a small price to pay for preventing losses.
Serving as Your Financial Coach
An advisor also can act as a teacher. Because the advisor keeps up with changes in the markets, you benefit from all of the latest financial info.
“A financial advisor can make a significant difference for anyone wanting to increase their wealth,” Magusara said. “Consider them your financial coach. They’re there to advise you, challenge you, as well as teach you things you don’t want to hear but must. Thеy provide a new perspective, free of the emotional rollercoaster of your financial decisions. Also, they keep you up to date on the latest financial trends and tactics, which is extremely difficult to do on your own.”
This money education is key to what an advisor does. The advisor can walk you through each decision about your money. That way, you truly understand what they’re doing and why they’re doing it.
“I have benefited from their wealth of knowledge and experience in managing investments,” Dubois said. “My financial advisor has shaped my wealth-building journey by educating and providing ongoing step-by-step financial guidance, especially as regards investments strategies. This has equipped me to make the right calculated moves necessary to improve my finances.”
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: 3 Ways My Financial Advisors Helped Me Build Wealth