Should I Invest in A Financial Advisor?

If you asked a series of people what their number one stressor in life was, chances are their answers would have some relation to money. Whether it is their mortgage, or their student loans, or the stocks the invested in but don’t know how to manage, there is a common denominator. Money stresses people out. It is understandable though, as money is a complicated issue, one that most people don’t understand, nor have the time to fully comprehend the benefits of planning financially.

Enter stage right: a financial advisor.

Financial advisors are professionals who help suggest financial services and information to clients, based on their specific needs.  They work as a guiding light that steers you on what to do with your money when you don’t know how to properly invest it. 

What Are The Benefits Of A Financial Planner?

There are many benefits that come with using a financial planner. The first, and greatest, is a monetary return on investment. Vanguard, a large investment company, completed a study that showed when good investment practices are put in place by financial advisors, the return can be in the 3 percent per year range.

A study done by Russell Investments, which deals with large money management, estimated that a financial advisor could bring returns around 3.75%.

That said, not everyone needs a financial advisor. Some people, about one-quarter according to Vanguard, enjoy learning how to invest and manage their money on their own time. The other three-fourths prefer to have someone else conducting the research, and putting it into motion. They are there every step of the way, guiding your money, and showing you how to handle it, yourself. 

There are many different things that a financial planner can help you with, some you may not even have thought about before. Of course, there are the traditional planning topics, 401K’s, retirement plans, investment strategies, asset allocation, etc. But then there are topics like minimization of taxes, rebalancing your net worth, withdrawals from the retirement accounts, and overall behavioral coaching. 

Financial planners also personalize each experience and strategy with each individual client. If you want high risk, high reward, they can help choose the best path possible. If you prefer low risk, low reward, then they can plan accordingly for you. No matter your desires, they can tailor a plan to meet your standards, both monetary and long-term.

Not only can a financial planner help you with your planning, but they will help minimize the stress in your life, save you money and help you make your goals more attainable.

If you want to learn more about the benefits of a financial planner and what we can do for you, contact us!