Online Financial Advisors

There's one thing we can say for sure – everyone needs a financial advisor. Yet, those two words scream formality, don't they? A financial advisor is someone a Fortune 500 CEO counts to steer him or her through a myriad of tax, regulatory, and market issues to enrich their portfolio. While it's true that Fortune 500 CEOs likely count on financial advisors (perhaps even seven or ten of them), this doesn't mean you can't have one as well. You might not have the assets as the CEO of Nestle, but you have plans and a future, and that's where an advisor can add real value.

We've all got assets, and managing them is fundamental to stability, and hopefully, growth. Historically, financial advisors were folks you'd meet with on a quarterly basis to review movements and your position in particular assets. They are not cheap, and as such many potential clients were priced out of their services. Enter the World Wide Web to the rescue. The Internet has flattened the offer of nearly every service that does require one to be in front of another person. As such, online financial advisors can either work from home or a cheap(er) office as compared to having to meet clients in-person. This results in a lower price to you, the buyer, and suddenly, you're priced into the market!

An online financial advisor allows you to embark on several things. First, they will likely provide budgeting templates with which you can plan your finances for things like spending trends, college funds, or retirement planning. Second, if you have debt, a financial planner will help you understand how to manage your debt and then develop a plan to pay it off. The great part of having a financial planner either on retainer or "on-call" is assessing your finances with them at any time. However, do be careful, as most will include a set amount of assessment hours per week for a flat rate per month.

An often less touted benefit of a financial planner is security. As opposed to a stockbroker, for example, that might advise you to take a position in an asset based on their personal interest, a financial planner is typically (not always, but more than likely) a non-biased advisor. If you do sense however, he or she is pushing you in an uncomfortable position, it's best to get out.

Before settling on an online financial planner, there are some things you want to make sure they can handle. The first is portfolio and asset tracking. There are tons of free tools that do this for you online, but a financial advisor will have a good understanding (or should at least) of the market volatility. Risk analysis is another area to inquire about. Standard thinking is the younger you are, the more aggressive and risky your positions can be. If you have some good years, those are great. If you don't, it's not a deal-breaker because you have time to make it up.

A sound, online financial advisor, will have mobile features that you can install as an app on your smartphone. With this, you have access to your account at any time. You can make simple changes, but the more significant movements should be reserved for when you speak to your advisor. Next, ask about "what if" projections. These are simulations that we engage in informally every day. What if I take that job in Kansas City and need to move my 401K from X company to Y company? What if my son decides to take on a student loan, and I am the co-signer and for some reason cannot repay? Having someone to consult with on these scenarios is worth every penny you shell out.

This is a great time to finally level up with the Fortune 500 CEO. He or she has their planner, and now you got yours. Things are finally shaping up!