Brian Traverso, ChFC, AIF, CPFA, AWMA, EA
3 Reasons Why You Should Work with a Financial Adviser
Raise your hand if you’ve ever been stressed out by money or if you’ve ever felt anxious about a big financial decision. We often seek out professionals in so many areas of our life (that is, after we read a few blogs online). We turn to the pros to help us with exercise, diet, being more productive, reducing stress, telling us how to dress; we turn to realtors, lawyers, accountants, psychologists and therapists, but most people manage their finances on their own, often making complicated decisions with little to no outside advice.
The financial world is extremely complex and constantly evolving. Having an advisor around to help bring clarity and structure can prove to be invaluable.
Here are three reasons why you should work with a financial advisor:
1, There is no ‘one-size-fits-all’ model.
We are all different. That isn’t a new idea, but it’s an important factor to consider when googling ‘how to save for retirement’ or ‘where should I invest my money?’. More often than not, the answers to these questions are simply, “it depends.” Your specific situation requires special attention. You might have goals that include buying your first house, a second home, family vacations, or starting a business. Certain life events can also drastically alter any financial plan. Getting married, going through a divorce, having children, sending children to college, helping aging parents, receiving an inheritance and retiring are just a few of the important events a financial advisor will help you navigate with a custom plan. For those with a young family, now is the time to start saving for college.
2. Financial decision-making can be overwhelming.
I often run into people that are eager to invest but aren’t sure what that really means or how to start (and don’t want to hear a lecture on economics). Investing is not always as straightforward as reading a blog post or downloading an app to get started. The terminology can get tricky and the task of having to learn something so foreign regarding money causes anxiety. If you’re self-employed, you’re probably trying to juggle a laundry list of tasks already. A financial advisor can help you avoid common mistakes and help you work toward your specific goals. They will assess your tolerance to risk and make sure you are comfortable with your investment strategy.
3. Get advice from someone who spends all their time studying this stuff.
There are some people who manage their own investments with financial and life goals already set on a positive trajectory. However, there is still a great benefit to getting an impartial, unemotional outsider's opinion. Most people aren’t financial experts and it’s difficult to keep up with a constantly changing industry. If the advice from a financial advisor helps you avoid one mistake a year or helps you notice something you’ve overlooked in your plan, that could very well increase returns or avoid excessive fees. Use their expertise to your advantage.
Finances are a big part of our lives and demand equal care and attention as other areas. A good financial advisor will be there for you when those life events take place and help you create a plan to reach your goals. Further, working with an RIA, Registered Investment Advisor, will give you an added peace of mind knowing that your financial advisor follows a fiduciary standard, a legal duty to always act in your best interest. Your finances shouldn’t be a burden and finding the right financial advisor can help take that weight off your shoulders.