By Brad Sanders, CFP®, CRPC®
Have you ever heard the saying, “sometimes, you have to spend money to make money?” In the case of financial advising, that adage rings true. Though it might not seem like it, hiring a financial advisor is an investment within itself. A financial advisor can be of great benefit to your investments, and maybe even become a trusted friend. If you’re wondering whether you want to invest in a good financial advisor, it might be helpful to understand the many ways an advisor can add value to your financial plan.
- Advisors double as accountability partners
In the world of investment, things are not always sunshine and rainbows. As market returns fluctuate, so can your emotions surrounding the performance of your investments. It might be tempting to make rash decisions based on present market conditions, but it’s important to remember that those conditions are always changing. Having an advisor is sort of like having an accountability partner. They remind you of your end goal and encourage you to adjust your allocation and plan accordingly during periods of volatility.
- Advisors are knowledgeable about unique retirement and investment options
Whereas people who self-invest might not have a wide understanding of unique investment opportunities, an advisor usually does. They spend some time surveying the market and researching up-and-coming options. When you hire a financial advisor, they usually have an idea about how to build a personalized portfolio based on your end goal. Oftentimes more diverse than generic stocks and bonds, advisors can help you properly allocate and invest your resources.
- Advisors can forecast risk based on market changes
Financial advisors are seasoned pros at navigating different market conditions, and though they can’t always predict the market, they know how to adapt to unforeseen fluctuations. Additionally, most advisors have access to technology that can estimate losses/gains in varying market conditions, aiming to help you feel confident in your investment despite market uncertainty.
- Advisors can help you save in other areas of life
Advisors can help you develop a comprehensive savings plan that utilizes tax-advantaged strategies. Whether you’re saving for your child’s education, leaving a legacy, paying for health insurance, or just generally planning for retirement, there are many investment strategies that can save you from paying more in taxes than you already are. Hiring an advisor to help you implement these strategies could not only save you money come tax season, but could also save you the time and headaches that would surely follow if you had to research and implement those tax strategies by yourself. While it is true that every person’s circumstances are unique, when you hire an experienced advisor, you are benefitting from expertise that has been acquired by working with hundreds of individual situations over the years.
Overall, it’s important that you feel comfortable with and confident in your advisor. The value added by a financial advisor can not only be seen quantitatively through the hopeful growth of your investments and tax dollars saved, but also qualitatively in the relationship that is built. If you are currently seeking an advisor, consider reaching out to Stonebridge to see if we can assist you on your financial journey.
Brad Sanders has been a lifelong resident of Central PA. He began in the financial services industry in 2007. Prior to that, he attended St. Vincent College in Latrobe, PA where he was also a member of the baseball team. He earned his Certified Financial Planner® certification in 2012 and his Chartered Retirement Planning Counselor® designation in 2013.