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Why Do You Need A Financial Advisor

Why Do You Need A Financial Advisor

| June 22, 2018

If you are feeling overwhelmed with juggling your finances, or would like to get more organized with a financial plan, you probably could use some guidance. Many people have misconceptions about financial advisors and have unanswered questions about the process.  With all of the self-serve investment options available today, some investors may wonder how financial advisors will bring them value.

Here are some of the top misconceptions about using an advisor…

Advisors are only for ‘rich people’ with complex investments.

While finances do tend to become more complex as you make more money, advisors help people of various income levels. Many workers are just looking to put money away for retirement. They can be greatly helped by guidance from a professional to help determine how much they need to save and which quality investments will help get them there. Using an advisor can be especially helpful as you begin your retirement planning process because you will gain valuable insight as you establish your goals. As you gain wealth, a good advisor can be critical in helping strategize with you on more complex investment and tax planning needs. 

I could do the same thing myself.

Just because you can do something, doesn’t always mean you should. Many do-it-yourself projects require spending a great deal of hours doing research to teach yourself what professionals already have experience in. Do-it-yourself investing is no different except now you could impact your savings. A good financial advisor goes through rigorous training and certifications which require them to complete more training each year. Working with a professional who has experience could save you a lot of time you would spend researching investment options and prevent making costly mistakes.

Another factor to consider is whether or not you have been diligently saving on your own and selecting effective investments. Many workers do not have sufficient funds saved for retirement and using a financial advisor can help investors to stay on track through annually reviewing your plan and progress. Think of them as your financial coach. Running spending and saving plans past a financial advisor first can help you make smarter decisions with your money.

I’m close to retiring, so why start now?

Even if you have been saving through your career, the transition to retirement can require a lot of complex planning. Coordinating how to draw from your retirement savings and implementing an efficient Social Security strategy are major changes that can impact how long your savings will last. An advisor can help you create a clear plan to maximize your hard-earned savings so you can enjoy retirement.


Choosing an Advisor:

Selecting an advisor is an important decision. Most advisors will offer a complimentary consultation with you. Don’t be shy about taking them up on their offer. Meet with a few advisors and ask questions.


Here is a sample of some criteria you may want to check for:

- What credentials does this advisor have?

- Was I given a clear pricing structure?

- Do they communicate well?

- Is this somebody who's recommendations I could trust?


Additional Reading:

Take a look at the Vanguard published research on how an advisor can add value to their clients.

We would love the opportunity to speak with you about your financial goals.

Contact us for a consultation.


Advisory services offered through Capital Analysts, or Lincoln Investment, Registered Investment Advisers. Securities offered through Lincoln Investment, Broker Dealer, and Member FINRA/SIPC,  Krellwitz, Kurimoto and Assoc., and the above firms are independent and not affiliated.