A financial advisor can provide a wealth of information on how you can reach your goals. They can help you refine your short and long-term plans, provide guidance on budgeting, debt reduction, retirement savings, education savings strategies and insurance policies.
For instance, if you are a new investor who has recently opened up a 401(k), advisors can help you activate investment choices that align with your risk tolerance. They can also identify opportunities to lower your annual tax liability through deductions and tax-loss harvesting strategies.
As a client, you have a right to expect your financial advisor to know their stuff. They should be able to articulate your investment objectives, understand your risk tolerance and provide recommendations specific to your situation.
It’s difficult — and nearly impossible — to put together a financial plan without clearly understanding what it is you want to accomplish. A financial advisor will take the time to clarify your short and long-term goals, and create a strategy that will help you get there sooner than you might have expected.
They’re A Friend
If you’ve had major financial changes like selling a business, buying a new home or getting a promotion, an advisor can help you make those changes work for you. They can also provide guidance if you’ve simply decided to save more money, invest it or pay down debt.
A good financial advisor will have the heart of a teacher and leave you feeling smarter than when you walked in- that’s how you know they care about teaching and not just selling their services. Look for an advisor with a good reputation, experience and credentials like a CFP and a fiduciary (required by law to put your best interests first).