If 2020 has taught us anything, it’s that things can change overnight. Our world is continually evolving, and no matter what your financial situation is, it’s always good to have a plan. Your plan should not only take into account your current financial picture; it should also include your goals and dreams, health, family situation, and any other personal and professional dynamics you face.

Whether you’re building your business, figuring out when to retire, managing an inheritance, dealing with divorce, starting your family, or leaving a legacy, you deserve a financial plan that’s as unique as you are. Your financial plan should be designed to weather good times and bad, as markets fluctuate and unexpected expenses arise. This includes building a well-constructed investment portfolio, plus a lot more. Together with your financial planner, they’ll help you create a roadmap to follow and provide you with dedicated support to get you to your destination.

Financial Advisor Benefits

Forbes reminds any individual that properly managing your investments and making the right financial decisions takes time, skill, and effort. Busy executives, business owners, working parents, and caretakers have a lot on their plate, so now is not the time to take on one more responsibility. What makes a financial advisor worth it is their ability to keep you on track and proactively identify risks and opportunities for you. Skilled financial advisors manage your investments and also help you make decisions across your economic life. Take your time and do your research when it comes to finding the right advisor for you personally. 

Your financial plan shouldn’t be just a one-time document. As your life unfolds, you’ll need to update it to reflect the changes you’ve experienced. That way, you’ll have a living, breathing document to serve as your guardrails on an ongoing basis. The services you choose to employ through a financial advisor will vary depending on your age, lifestyle, and assets. Our financial lives are complex and inter-related.

Roles Of An Advisor

A researched article from The Street points out, one of the most common traps for individuals, especially in America, is overspending and lifestyle inflation. It’s hard to see things realistically when it comes to spending, and it usually requires advice from an independent financial advisor to assess objectively. Changing your lifestyle isn’t usually an overnight thing, and working with an advisor can help individuals and families stay on track by putting their financial choices into context. Skilled financial advisors can also help you handle specific needs such as tax planning, divorce, budget, college investment, gifting to charities, long-term care, debt management, insurance questions, employee benefits, estate planning, health savings accounts, and other business situations. The housing market is continually evolving, which means you could need assistance in analyzing mortgage payoff, refinance options, or coordinating directly with lenders.

Successful Investing Overview

One of the most fundamental financial advisor responsibilities is managing your investment portfolio. An advisor should tailor your asset allocation to help you meet your unique goals, in addition to managing risk along the way. Part of an advisor’s role in crafting your portfolio is incorporating a risk tolerance that meets your comfort level and growth needs. Depending on the time horizon of your financial goals, your advisor may recommend a more aggressive or more conservative portfolio. As time goes on, they’ll monitor your portfolio and rebalance as necessary to maintain the proper allocation. Your advisor should also seek to minimize expenses, work to limit trading costs, expense ratios, and advisor fees. Finally, your advisor should also make sure your accounts allow for the liquidity you need to weather unexpected events or fund planned expenses. Your advisor will be better informed and equipped to offer strategies to achieve your goals and navigate issues like life insurance, Social Security, Medicare, and IRA distributions. “We’ve had good success taking people who have been client relationship people and problem solvers who excelled at client service, we need to add capacity to get ahead of the curve,” says Mark Munoz, San Diego, financial advisor. 

Financial plans should be updated and monitored as your situation and need change. Make sure to look for an experienced advisor, who has a proven track record. A qualified financial advisor will ensure regular and open lines of communication. It may not seem pressing, but life happens fast, and we never know what changes are on the horizon. On the whole, financial advisors enjoy helping people, and in the long run, it will not only save you money but, more importantly, you’ll know your financial situation is on the right track.

Future stock photo by Who is Danny/Shutterstock