Helping people to think differently about their money.
When starting the journey to develop a plan for retirement, the number of choices to make can be daunting. Working with a financial professional can be an important decision to help reach long-term goals, but many investors are unaware of the benefits this partnership can bring, and it can be hard for people to even know where to begin.
Here is a quick read detailing some of the most beneficial (and overlooked) services that financial professionals commonly offer, and how they can help people reach financial freedom today with peace of mind for tomorrow.
We all want to maximize the money we work so hard for – but it can feel overwhelming when we try to go at it alone. Ideally, the advisor we select is classified as a “fiduciary” – putting their clients’ interests ahead of their own – and they work to understand their clients’ life goals in order to design financial plans specific to them.
Understand where you are today and plan for where you want to be tomorrow.
Three benefits of working with a professional that may get overlooked:
Portfolio Construction:
An experienced advisor can help ensure that investment portfolios risk and return profile matches long-term goals. Ensuring that the asset base is well diversified, and monitoring investment management fees which are critical components to a well thought out financial plan.
Tax Management:
Tax services are the most underutilized service according to financial advisors. One of the biggest detractors from investment returns is paying taxes on realized gains. Our income can fluctuate greatly throughout life as we change jobs and progress through our careers, so it’s important to adjust. Having a relationship with a knowledgeable tax professional can help minimize unexpected tax bills and help people to keep as much of their hard earned money as possible (rather than unnecessarily paying it to Uncle Sam).
Emotional Guardrails:
Despite the many technical aspects to financial planning, one of the most important roles an advisor plays is that of a behavioral coach who creates “emotional guardrails”. Creating a plan and sticking to it can be difficult and having a valued partner to coach you through market drawdowns or changes to your financial situation can be crucial. It can be difficult to make good financial decisions when they play to our emotions, and having an advisor to help make intentional, objective decisions in periods of stress can be an important value add for clients.
Our free tool is a great place to start if you’re not yet working with an advisor – or even if you are. It can help to provide insight needed to ensure you have effective plans in place.
Jake Fromm | Lead Investment Analyst, CFS® | It is our mission to help you think differently about your wealth so you can LIVE WELLthy™ today and tomorrow.