Essential Financial Advisory Steps for Professionals and Entrepreneurs

Financial advisory is a critical aspect for individuals and couples looking to secure their financial future. In the USA and Canada, many people call themselves financial advisors, but it’s essential to differentiate between those who work for brokers and those who are fiduciary advisors.

Brokers often have conflicts of interest as they work on commissions and may push their own products.

True fiduciary advisors, on the other hand, are legally bound to put their clients’ interests first.

Here are some key steps for anyone, especially professionals and entrepreneurs in the Middle East, to consider when seeking financial advice:

Key Steps for Financial Advisory

1. Evaluate Your Current Financial Situation: Start with a comprehensive statement of your current assets and liabilities. Include properties, loans, credit card debts, and any other financial obligations.
2. Set Specific and Realistic Goals: Define clear and achievable financial goals. Avoid unrealistic expectations like extremely high returns in short periods. Investing is not gambling. Example: “I want to retire at 64 with an annual income of AED 450,000 or SAR 450,000 adjusted for inflation.”
3. Run Projections: Use online tools to check if you are on track to meet your goals. Wealthface offers a free retirement calculator to help with this: Wealthface Retirement Calculatorhttps://wealthface.com/retirement-calculatorFactor in major expenses like children’s education to get a clear picture of your retirement funds.
4. Adjust Your Goals if Necessary: If your current savings and investment returns aren’t enough to meet your goals, consider adjusting them. You might need to lower your expected retirement income, save more, or extend your retirement age.
5. Build a Tailored Portfolio: After setting a starting point and an end goal, create an investment portfolio that suits your needs. Diversify your investments to manage risk effectively. Important Considerations Professionalism in the Middle East: Many people in the Middle East are savvy investors.

However, it’s crucial to maintain a clear distinction between personal and business finances. Seek Fiduciary Advisors: Ensure your advisor is not incentivized to sell specific products. Do thorough research to find a fiduciary advisor who prioritizes your interests. Plan for Retirement and Other Goals: Even in regions without income tax, it’s essential to save and plan for retirement and other financial goals like education.

Conclusion

For professionals and entrepreneurs, proper financial planning is essential. By following these steps, you can create a solid financial foundation, avoid conflicts of interest, and achieve your long-term financial goals. Always ensure that you’re working with advisors who have your best interests at heart and make use of available tools to stay on track.