Should You Use A Friend Or Family Member As A Financial Advisor?

Financial advisors are out there in thousands waiting to be hired by real estate investors which makes it a difficult task to decide upon. The main idea of having an advisor is to have someone guide you through the path of your financial journey. A financial advisor should be someone that will be able to understand you as an individual; knows your goals, strategies, weak point and most of all someone you can trust. A friend or family member is someone who in a sense knows you very well which makes it a good idea to have them as advisors. If a family member is licensed as a financial advisor, there is no reason that should make them not qualified for becoming you financial advisor.  However, every situation has its strengthsand flip sides.

The benefits of having a family member or friend as an advisor

Friends have a way of easing away all your stress while taking care of most if not all your problems. Having a friend or family member act as your financial advisor helps you in making solid financial decisions. They know your strengths and weakness and so they can hop in at any point when you feel you cannot go on, to help you. They can also act as a source of motivation when you think everything is not going as planned. You don’t have to start from scratch with a financial advisor that knows absolutely nothing about you.

The pitfall of using a family member or friend as an advisor

A friend or family member is someone that knows you all too well and this can make things awkward in a working situation. Some people might take things for granted which makes them do things the way they like knowing fully enough that you will say nothing.

Another pitfall in working with a friend of family member is that, it becomes hard to fire such an individual when they are not performing there appointed task. When it comes to terminating their services, a lot of things come into play like thinking how your family will feel and all the guilt involved. That is why most people do not opt for hiring a family member or friend as a financial advisor.

Making decisions

Having a friend or family member as a financial advisor depends on how comfortable you will feel working with them. Some of them can be a total nightmare for your business while others are just heaven sent. That is why you should know the kind of friend you want to hire as an advisor. Find someone you can trust, who also goes all out to do things in your best interest.