A Social Weather Stations survey revealed that 48% of Filipino families rated themselves as poor and 34% of families feel food-poor. At a time when prices of commodities and services continuously soar, we may feel at a loss on how to cope with inflation – even if we have the financial resources.
This is where financial advisors come in, as they can help sort out your finances. They can create a plan and suggest effective strategies to fix financial concerns at different life stages. Here are 4 ways a financial advisor can change your life.
1. Financial advisors are licensed to offer the best possible advice.
Financial advisors must pass the exams conducted by the Insurance Commission in order to earn their license. As licensed professionals, they can evaluate one’s present financial condition to determine what areas need improvement. Aside from creating a suitable financial plan, an advisor can provide the best possible advice given the client’s current state of finances. This includes designing strategies and offering valuable advice on investments, debt management, or securing healthcare funds, among others.
2. Financial advisors can guide you to a brighter future.
It is every parent’s goal to send their children to good schools but the increasing cost of tuition and other school expenses may strain their budget. Despite the state of education in the Philippines, most Filipinos still believe that finishing college can open many doors of opportunities that lead to a brighter future. Aside from receiving job offers and better salaries, graduating with a college degree can help lift a family in terms of financial capacity.
A financial advisor can help you give the best education to your kids by proposing suitable insurance and savings plans. Through education plans, you can grow your money over the years which you can use to fund future expenses in school. Sun Life offers several insurance plans for education needs such as the following:
- Sun Dream Achiever is a life insurance and savings plan with coverage of up to 15 to 20 years. It is designed to fund a child’s education with increasing guaranteed cash benefits to ensure that a child has school funds even when unforeseen events happen in the future.
- Sun MaxiLink 100 is an affordable investment-linked life insurance plan that helps parents build an education fund for their child’s future. It has guaranteed life insurance protection until age 100.
- SUN Smarter Life Elite is a protection and savings plan that offers double life insurance coverage throughout an insured's lifetime. It provides additional cash benefits that parents can use to fund a child’s education needs.
Want to know how much is needed to prepare for your child’s university education expenses in the future? Check out using Sun Life Philippines’ Education Budget Calculator to find out how much we must save for your kids.
3. Financial advisors can help customize and improve your financial portfolio.
A financial advisor gives customized financial plans for the different life stages of a client. Doing so can improve your portfolio, ensuring that it can cover your lifetime of changing needs.
To customize and improve a client’s financial portfolio, a financial advisor takes note of their personal goals, risk tolerance, and time horizons.
- Personal goals: Having a clear set of financial goals can give you direction. This can be saving money to purchase a house for the family, investing money to grow wealth, or eliminating debt. A financial advisor can come up with unique strategies and guide you along the way so you can successfully reach these personal goals.
- Risk tolerance: Risk tolerance refers to your willingness to power through market fluctuations affecting investment values and endure potential losses for higher returns. Sun Life uses five risk profiles to categorize investors:
An advisor will assess and consider your personal risk tolerance when tailoring investment strategies. Conservative investors enjoy lower potential fluctuations with lower returns, keeping their principal investment ready for sudden expenses. Investors with high risk appetites surf higher waves in the market for better—or worse—financial returns.
- Time horizon: A time horizon refers to a period when investors hold their money in a portfolio to achieve a financial goal. Once they achieve target returns, they reinvest or withdraw their principal investment.
Your investment strategy and financial goals will determine your time horizon. Longer time horizons allow more time to pass between deposit and withdrawal, keeping your cash inaccessible while it goes through market fluctuations for higher returns or losses. Shorter time horizons allow brokers to sell your assets the moment they appreciate, allowing certain but lower returns.
A financial advisor can create short-term-horizon strategies to help you save for two years, enough to supplement a downpayment if want to buy a house. They can also deploy different strategies to help you prepare for retirement, working on a long-term time horizon. Learn about the Recommended Investment Mix, and discover the best way to achieve short- and long-term goals.
4. Financial advisors will protect your legacy.
Finding the right financial advisors can help you during the estate planning process. You can depend on their expertise when it comes to planning how to protect your estate and provide for your loved ones when you are no longer around.
Financial advisors will strategize on a plan based on how much money and properties you own, while taking into consideration the needs of each family member. From there, they can assist us in implementing your wishes so you can ensure that your loved ones are financially secure.
Sun Life offers estate preservation insurance products so you can pass your wealth to the next generation in the family. Such insurance plans include:
- SUN Smarter Life Classic is a protection plan that gives double life insurance coverage throughout a lifetime. Its maximum coverage protects loved ones from paying expensive estate taxes and other fees when something happens to the insured.
- Sun Legacy is a protection and savings plan with coverage until age 100 that preserves the wealth that the insured has built throughout the years and efficiently passes it on to loved ones through the guaranteed benefits the plan provides.
Sun Life Philippines has qualified licensed advisors who can guide clients with different financial strategies at every significant milestone of your life. Connect to an expert financial advisor who can give meaningful advice and recommend the right insurance and investment products for your family to secure a brighter future.
ALSO READ: Perks of having a Sun Life financial advisor
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