Whether you’re new to personal finance or an experienced investor, there’s always something to be gained from working with a financial advisor.
A good financial advisor has in-depth training, licensing, and often years of experience serving clients. They can help you balance risk, check in with your financial health, and create a plan to meet your goals.
In this post, we’ll highlight five important benefits of working with a financial advisor and how they can help you work toward your goals.
1. Helps You Prepare for Retirement
You may have a 401k through your employer or even put money in a Roth IRA. But how do you know if what you’re saving will be enough to retire?
Financial advisors can help you prepare for retirement. They’ll listen to your goals and help you craft a roadmap for how to get there. And since they’ll take a comprehensive approach, they may also give you tips on how to save in tax-efficient ways.
2. Helps manage risk
A financial advisor can check in with your tolerance to risk and help manage your assets to reflect this. Your risk tolerance may change as you get older, and your financial advisor can help you adjust accordingly. For example, if you’re 30 years away from retirement, you may be comfortable owning assets that can fluctuate in value over time. An advisor might recommend keeping a higher proportion of your assets in the stock market. Whereas, after retirement, a financial advisor might recommend that you invest more in assets usually seen as less risky, like treasury bonds.
3. Customizes Your Financial Plan
Financial goals can be complex, and saving for the future usually involves more than l putting money into your retirement plan every paycheck. Every person’s financial situation is unique, and sometimes it requires more creativity and strategy than others.
Financial advisors can customize a plan to your needs. That may mean helping you choose between setting up a custodial account or a 529 plan to save money for college, or choosing a Roth IRA conversion when you’re farther from retirement.
4. Helps You to Leave a Legacy
Saving money and achieving financial independence is an incredible accomplishment. But, what happens after you pass away? After all that hard work, why not leave it behind for your family or to important causes that you care about?
Many financial advisors have experience with in estate planning They can help you transfer your wealth in tax-efficient ways to the people you want to receive it.
5. Provides You with Emotional Guiderails
Sometimes you’re your own worst enemy, and this can be especially true when it comes to your money. If the markets are down or you’re having doubts about your financial plan, you may make rash financial decisions on your own. Overall, working with a financial advisor canhelp to keep you grounded, put your mind at ease, and bring your closer to your goals.
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