What is the value of Financial Advice?
You have been thinking about whether there is value to having Financial Advisor. You have been handling everything yourself and are wondering if it’s time to have someone else review your investments. You may have a Pension Plan or 401(k), and you may be maxing out contributions in your supplemental retirement plan at work. When you are building wealth, questions come up. How should I invest the funds in my supplemental plan? Should I invest in a Roth IRA? What if I die? Do I have an adequate amount of insurance? Will I have enough money when I retire? Making the wrong planning decisions could affect your family, and there may not be enough money for retirement. It is a daunting task and a lot to think about.
The role of a Financial Professional is critical to those looking to pursue specific financial outcomes. Whether it is retirement, education funding or building a financial legacy, well-crafted personalized advice can be valuable. Wealth Management and Financial Planning advice is not just investment selection. Finding the investment strategies to address your financial goals is a complex exercise. Selecting the appropriate blend of investments is paramount. Finding a Fiduciary Financial Professional who is looking out for your best interest instead of their own is most important.
What is a Fiduciary? A fiduciary is a person or organization that acts on behalf of another person or persons. They are putting their clients' interest ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests. Money managers, Financial Advisors, bankers, accountants, executors, board members, and corporate officers all may have fiduciary responsibility.
What advice should you expect from your Fiduciary Financial Professional? Your Financial Advisor should be dedicated to helping you achieve your financial goals. By understanding your individual needs and objectives, the Financial Advisor will provide personalized guidance and consultation along your financial journey with the right strategies and solutions in place to help you succeed. They should start by gathering information. By understanding your full financial picture, they can tailor a comprehensive Financial and Wealth management plan to your goals.
Once a Financial and Wealth management plan is in place, your Financial Advisor should continue to refine the plan and have ongoing discussions to make sure you are on track. Because as your investment goals evolve, adjustments to your strategy will be necessary as you travel through your financial journey. Although everyone’s path is unique, three major phases emerge through adulthood and each stage requires thoughtful Financial Planning and strategic investment choices: Build a Foundation, Use Your Wealth, and Make it Last.
Research shows that a Fiduciary Financial Advisor who provides professional financial planning, coaching, and portfolio management services can add meaningful value compared to the average investor experience. If you are working with a Financial Advisor, you might ask on your next visit if they are a Fiduciary.