You might think that only the well-to-do need a financial planner, but the truth is that everyone can benefit from individualized guidance and insights based on years of experience.
Effective financial advisors do much more than just tell you what stocks to buy — they also offer invaluable knowledge on shifting market trends, building your retirement fund, estate planning, budgeting to reach your goals, and so much more.
While stock trading and automated investment apps work well enough for some people, they can’t give you highly personalized advice that’s designed to address your specific needs.
If you’re not sure about hiring a professional advisor or how they can help you, let’s dive deeper into the unique advantages of working with a fiduciary who has your best interests in mind.
Navigate Life-Changing Events
Getting married, becoming a parent, or dealing with the loss of a loved one is stressful enough without the added worries about how your finances are going to change.
A skilled and supportive advisor can assist you in times of upheaval and help you create a strategy that adapts to your new circumstances. It’s easy to be overwhelmed by these occurrences and put thinking about your finances on the back burner.
Have you recently received an increase in income or a big promotion at work? Now is the perfect time to re-evaluate and increase your contributions to your retirement fund — or build it from the ground up if you don’t have one in place.
Focus on the Future
As our population ages, you may find yourself caring for elderly family members, or you or your spouse needing long-term care. This situation can be emotionally difficult and possibly have a negative impact on your finances if you’re not prepared.
You should partner with your advisor to create a comprehensive estate plan, and encourage your loved ones to do the same. Getting your wishes in writing ensures your family and your assets will be protected from probate costs, squabbling heirs, and unnecessary tax burdens.
They can also evaluate your current insurance policies, identify gaps in coverage, and make recommendations to help you safeguard against the unexpected.
Parents often worry about how they’ll pay for their children’s college education, especially as costs continue to rise. Speaking with an innovative financial planner as soon as possible will take this weight off your shoulders once you’ve developed a solid plan.
Of course, one of the most important functions of your advisor is to guide you through the ever-shifting investment landscape. In this volatile market, things change rapidly, but a pro with ample experience can spot emerging trends and opportunities that a robo-advisor will miss.
Rebalance and Evolve
An investment app just doesn’t have the same diversity of tools and holistic views that are needed to craft an individualized approach to building your wealth and planning for the future.
Those simplified platforms don’t have the capability to perform a detailed analysis of your current portfolio and make ongoing adjustments to stay in alignment with your personalized investment strategy.
Some investors fall into the trap of following fads or making financial decisions based on emotion instead of analysis. An accomplished advisor will help you avoid these pitfalls, stay the course through short-term turmoil, and keep your eye on the long game instead.
Get the Answers You Need
When researching your options, there are several key questions you should definitely ask any potential advisor. Doing your due diligence is worth the effort, as working with an advisor that’s 100% in your corner can save you both time and money.
The most essential question to ask any potential advisor candidate is, “what are your qualifications?” You’re looking for someone with plenty of experience, a passion for ongoing education, and impressive credentials. These are the most common designations you’ll see among money managers and financial advisors:
- Certified Financial Planner (CFP)
- Chartered Financial Analyst (CFA)
- Chartered Financial Consultant (ChFC)
- Certified Public Accountant (CPA)/ Personal Finance Specialist
These certifications take thousands of hours of dedication and hard work and signify your advisor is subject to oversight from a regulatory body such as FINRA or the Securities and Exchange Commission.
Discuss fee structures, all-in costs, and investment philosophy with anyone you’re considering hiring. Look for glowing reviews and references, and ask what tools they utilize, what their investment benchmarks are, and how they view their fiduciary responsibilities.
It’s also vital to have an understanding of your personal financial situation and your long-term goals to find the best fit. Every advisor is different, and they won’t all align with your style and beliefs.
Explore the Possibilities
Whether you’re just starting out or gleefully eyeing retirement, you can definitely benefit from the expertise of the right financial advisor. From debt management to estate planning or building an investment portfolio from scratch, I’ll be there to help you every step of the way.
There’s no time like the present to reach out, learn more, and get started on the path to financial freedom. If you’d like to schedule a one-on-one consultation to see what I can do for you and your family, give me a call today!