August 19, 2019

If you ask that question to any Financial Advisor the answer will be a resounding “YES”!!!  However, the answer is probably closer to a “Maybe”.  A few years ago Vanguard quantified that a Financial Advisor can increase a client’s return by “about 3%” per year.  This isn’t by choosing a hot stock or timing the market just right.  It is from a bigger perspective.  So, let’s look at the reasons why you need to have a Financial Advisor, so you can better determine the answer for you.

Experience – The average person goes through many different financial transactions throughout their life time.  Through their client base, a Financial Advisor has experienced most of those various stages and can help offer pointers from how much to save for college, determining if you have enough money to retire, how much to withdrawal from your accounts during retirement, when to take Social Security, etc…

Expertise – To be a Financial Advisor that person has taken the time and did the studying to pass various regulatory exams.  Also, they may even go farther with their education and decide to pursue a Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designation.  By doing so, they can help guide clients through the best type of investments the client should use, what their asset allocation should be, or what type of accounts they should have.

Sounding board – Husbands and wives usually have different opinions of risk/returns, lifestyle expenses, when to retire, how much to give to the kids, etc….   Sometimes clients need an impartial 3rd party to discuss situations that come up.   A Financial Advisor can help referee the discussion to arrive at an agreeable decision and help set expectations.

Accountability – I think this is one of the biggest reasons why you need a Financial Advisor.  It is kind of like a personal trainer.  We all know we need to exercise on a regular basis, but sometimes we need a “kick in the butt” to get it done.  A Financial Advisor can hold their clients accountable to meet their investment, retirement, or life goals.  They should be proactive with their clients to make sure they are making their annual contributions, starting to save more when they turn 50, make sure they are working at paying down their debt, asking if their will is updated, do they need to make changes to their beneficiaries, etc…

Market downturns – when the market heads into a downturn a Financial Advisor can use all of the factors above to help a client weather the storm and not panic.  A downturn is not the time to sell.  If your asset allocation is correct for your risk tolerance then you know this an opportunity to buy.

If your current Financial Advisor is not providing this support then maybe you do not need a Financial Advisor or maybe you need a new one?

If you know of someone looking for a Financial Advisor please forward this on……