Broker Check

Why Work With a Financial Advisor

PLANNING FOR “WHAT IF?” Even if you think that no one can manage your family’s assets more efficiently than you, think about what could happen if you get sick and can’t do it. Does your spouse have the time or interest to take it over? You may think it’s too early to find a third party to manage your assets, but if something should happen to you, transitioning the management of your financial portfolio can be far easier if you already have a financial advisor.

YOUR TIME IS VALUABLE. A well-educated, experienced financial advisor has spent thousands of hours learning to understand, analyze and manage personal finance issues. Compare that to what you can devote to the cause on top of your day job, family and life commitments. Plus, in retirement you probably have better things to do. Even if you’re a world-class money manager, you can outsource financial planning in favor of spending more time on things you enjoy, just as you might hire a house-cleaner or gardener.

RETIREMENT SPENDING NEEDS A SECOND OPINION. Planning for retirement is straightforward for many people: save aggressively, have a solid investment plan and stay the course. But many people have trouble spending down their portfolio in retirement and end up skimping on their lifestyle because they fear running out of money. Your financial advisor can bring much needed confidence, coaching you on how best to deal with seeing a smaller portfolio balance on a continuous basis.

MONEY AND FINANCIAL DECISIONS ARE EMOTIONAL. Emotions can drive your decisions and cloud your better judgement. Add to that the sheer volume of information that’s available to investors and it can be hard to sort through and digest. Your financial advisor’s experience and knowledge of your background serve as a filter, separating out the noise and distilling only information which is useful and relevant to you personally. Plus, your advisor isn’t as emotionally entangled in your “stuff” and is more likely to see your case in a more balanced way.

FINANCIAL NETWORKING. Your financial advisor can refer you to other financial professionals — a lawyer to discuss how much liability you need to insure against, a certified public accountant to work on your taxes or an estate planner to update your trust documents. Your financial advisor, who already knows your situation well, can save you time by referring you to someone who already deals with clients who have similar levels of assets and concerns as you and can work with those professionals to make sure all areas are working together in your best interest.

Note: Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. There is no guarantee that using an advisor will produce favorable investment results.