Every day, more and more products are introduced to the masses – promising protection, extreme growth, and/or everything in between. We are bombarded with commercials for the QQQ during March Madness. We’re told to be fearful of new potential tax laws in the works. We get letters from our banks telling us it’s time to invest in their new product or take out the newest and shiniest credit card.
Some people really enjoy getting into the nitty gritty of these products, but most are focused on living their lives, and doing what they can to pay their own bills and store away what they can while trying to enjoy the things they’re passionate about. Often, rather than taking the time to learn the financial jargon and intricacies of these unique products, it’s easy to get overwhelmed and decide to just do nothing instead. We call this “analysis paralysis” and it happens more often than expected.
This is where the value of having a financial advisor can come in handy. When things get fuzzy, overwhelming, or seem too good to be true, an advisor can offer clarity, expertise, and personalized guidance.
Why Should I Consider Using an Advisor?
Each day, the narrative around money changes. Fears that social security could go away rise, questions about Medicare are bandied about in congress, and the “rule-of-thumb” number that you need to have to retire seems to rise. Regulations change, the market rises and falls, and nuances around money continue to shift. It can be a lot for us, and we spend every day focused on it! This is where it becomes important to have someone to tell you that everything should be okay, or that some changes can be made. Advisors can simplify, or clarify, the shifting sands of financial and investment planning for you and help you to sleep better about your money. Through time, earned credentials, and knowing best practices, advisor (at least the ones that are worth their weight in gold) are able to put together strategies that fit YOUR best interests, and help you feel comfortable navigating these complexities.
Why Ongoing Relationships are Important:
Getting a plan together, and then ensuring that you’re on track with that plan can be invaluable – both for your ability to retire and for your mental health. When times are good, it’s easy to spend money that should otherwise be put away. When times are bad, it’s easy to reallocate to safe positions when it may not be in your best interest. Some people simply need an advisor to tell them “you’ll be fine”. Some want to know every detail of their portfolio. A good advisor will help them understand how their investments can help them reach their goals, without getting too far into the weeds. As we grow older, our needs change. So should your investments. As a 28 year old, I am concerned about accumulation and making sure I’ll have enough to retire some day. When I’m in my 50’s, I’ll start to worry more about the best plan to withdraw my money and protect it. When I’m 80, I’ll worry about the best way to pass it along to my heirs. Advisors can help me each step of the way.
Conclusion:
At the end of the day, what’s important is that you find someone who helps you feel comfortable and like you’re heading in the right direction. Often times, just a little optimization in your financial plan can make significant positive change down the road. Whether it’s changing your risk profiles, finding tax efficiencies, or anything in between, a good advisor will help you sleep better at night. Trust, clarity, and transparency are extremely important when it comes to your finances. If you don’t have that, it may be time for a second opinion.