As your career in St. Louis grows, so do your earnings. Provided you're living within your means and are focused on saving some money every month, you'll find that your savings grow quickly.
At some point, you'll be faced with a question of "what should I do with this money that's just sitting there?" This is the moment to start looking for a financial advisor in St. Louis to help you create a plan of action for your savings.
A financial advisor can help you with financial goals, what you want your money to do for you, and devise investment strategies for the long term.
What Financial Advisors in St. Louis Can Do for Your Money
Saving money is the first step toward ensuring you can weather economic stress in your own household. Chances are you've determined how much you would need to pay bills for a set period of time in case of a job loss and are focused on saving that amount of money. You probably kept building on that amount in order to have extra security.
Now you have a large nest egg sitting in a bank account that's barely earning interest. This is a good time to start looking for financial advisors in St. Louis and start learning how to get your savings to grow faster.
A financial advisor is someone who helps you determine what it is you want your money to do for you. They take a look at how much you have to invest, how much you want to set aside for emergencies, and work out an investment and savings strategy based on your goals. Financial advisors in St. Louis do more than create investment strategies, however.
Part of their job is to watch the stock market in order to determine which stocks are appropriate investment vehicles for their clients. Financial advisors can tell a client if a stock is good for a short-term hold or if it should be held for the long-term and cashed out when it's time to retire.
Another service a financial advisor in St. Louis offers is retirement saving strategies. You may have a 401(k) through your employer, but you might not be aware of other ways to save money for retirement. Financial advisors in St. Louis help you realize your retirement goals by showing you the different types of retirement plans on the market and how they can be of benefit to you.
Understanding How a Fee-Only Financial Advisor Works
Financial advisors in St. Louis operate on one of two income structures: fee and commission.
The financial advisor typically discloses the fees and commissions that are taken out of financial transactions made on your behalf. When you're opening your account, your advisor will explain their fee or commission structure in order to ensure you are fully informed as to the deductions you'll see in your statements. A fee-only financial advisor takes a set amount for transactions made on your behalf and will never take a commission or percentage from the transactions. The fee-only structure helps you estimate how much money you'll pay to the advisor and what you'll earn on a given transaction.
It's a fact you're going to need money throughout your adult life.
A St. Louis financial advisor can help you turn a small amount of cash into a large amount over a period of time through careful financial planning and smart investment strategies. The sooner you start investing your money with a financial advisor, the more money you'll earn on top of your working income.