Things Are Going Well, Why Should I Call a Financial Advisor?
I previously wrote about the personal financial “red flags” of “I’m all set” and “He’s a nice guy” (referring to an advisor who may not be providing service but is pleasant so they don’t wish to upset the applecart) as two reasons why people avoid meeting with a financial advisor. Upon further conversations, it has been an observation that some people aren’t really sure when a good time to meet with an advisor is. After all, the markets have been going up and by happenstance their 401k plan has been rising, so why should someone call a financial professional when things are just fine?
Professional athletes don’t stop practicing because they are at the top of their games - they want to stay there. Shouldn’t you want to stay on top of your finances?
- Money in motion - Birth, adoption, death, marriage, divorce, domestic partnership, purchase or sale of a home, buying or selling of a business, new job, layoff, considering a retirement buyout or severance package, thinking about retirement - these are just some examples of decisions and events that happen in life where money will be involved. When money is in motion, speaking with a financial advisor may be helpful in making informed decisions.
- Education - Do you know what you own in your portfolio and why? Do you know if these investments are working toward or in opposition to your goals and objectives? Are you potentially over-weighted in a particular market sector? Are you poised for potential changes in the markets or economy? What about rising interest rates? If you want information about your portfolio, a financial advisor has resources and knowledge to share with you.
- Conflict - Combining finances in a relationship can sometimes be complex. Not everyone shares the same viewpoints and one person might be more risk tolerant than another. A financial advisor can work with couples to help mitigate conflict, identifying goals and helping to build collaboration in an overall financial plan.
- Getting Started (Or Starting Over) - If you are new to managing money, a financial advisor can assist you in understanding where you are going and how you might get there, assisting you in building your future.
- Leaving a Legacy - Perhaps you have built considerable wealth, wish to assist family members, or have charitable intent, a financial advisor might work to identify strategies that may help you to leave the legacy you desire.
- Protection - We can control many things in life, but we cannot (generally) control our date of expiration. A financial advisor can help to ensure that those left behind can manage without your income and obtain the things you wish such as an education through insurance strategies.
- Strategic Planning - You may have specialized concerns that require a comprehensive approach. A financial advisor can help discuss a range of possible strategies to create a customized plan.
- Business Owner Issues - Whether seeking to mitigate Uncle Sam’s bite or seeking to retain employees, a financial advisor has potential ideas and opportunities to share.
- Wealth Management Team - You may have other professionals such as your attorney or CPA that are part of your wealth management team. A financial advisor can work in tandem with them to offer perspectives and to build and manage portfolios.
These are just some reasons why meeting with a financial advisor can be helpful. It often takes money to build dreams. Don’t wake up to a nightmare; be proactive.
The opinions expressed are solely those of the author. Seek advice from a qualified professional before taking any action in regard to your finances.
Todd A. Slingerland, CFP®
6 Tower Place Albany, NY 12203 (518) 867-4000 x105 firstname.lastname@example.org