Why Work With a Financial Advisor?
A good plan only works if you stick to it.
What This Means
Managing your own investments can seem pretty straightforward when markets are calm and everything is going according to plan.
The real challenge usually comes when things aren’t going according to plan.
Markets fall. Investments underperform. Headlines turn negative. Other investments start doing better than yours. And suddenly, the strategy you were perfectly comfortable with six months ago doesn’t feel so comfortable anymore.
That’s when emotions can start driving investment decisions.
But it isn’t always just about the market.
Life happens too.
You may have a big purchase coming up and need to decide whether you can afford it. You may need a large amount of cash and have to figure out which account it should come from. You may be retired and need to take withdrawals while the market is falling.
Those decisions can have a much bigger impact than people realize.
A good financial advisor can help you walk through those decisions and look at how they affect the rest of your financial plan — instead of making each decision on its own.
And when markets do get uncomfortable, an advisor can help determine whether something has actually changed that requires action, or whether the best decision is to stick with the plan.
Because over a lifetime of investing, avoiding a few big mistakes can matter a lot more than making a bunch of small investment changes.
Sometimes good financial advice is knowing what to do. Sometimes it’s having someone there to make sure you don’t do the wrong thing.
Common Questions
Do I need a financial advisor if I’m already invested and not retiring for a while?
There are a lot of important financial decisions that can come up long before retirement.
A financial advisor can help you work through those decisions while keeping your long-term plan in mind.
Retirement may be years away, but the decisions you make between now and then can have a big impact on when you actually get there.
How do I find the right financial advisor?
Look for an advisor who understands your entire financial picture, clearly explains how they get paid and acts as a fiduciary.
Most importantly, find someone you trust enough to call before making a big financial decision — especially when emotions are involved.
What should I look for when choosing a financial advisor?
Look at their experience, how they get paid and the types of clients they typically work with. You should also look at any content they’ve created. Videos, articles and other educational content can give you a good idea of how they think, communicate and approach financial planning before you ever meet with them.
Remember This:
The right financial advisor can be worth far more than what you pay them.