8 Reasons Why You Need an Experienced Financial Planner
A financial planner is an important advisor who provides various financial services for a client with the goal of helping them manage their money to reach long-term financial health and retirement. While achieving these goals is difficult but possible on one’s lonesome, with a dedicated and professional financial planner or advisor, these goals become more attainable and within reach. Financial planners are trained professionals specializing in complex areas of finance such as investment management, tax planning, asset allocation, estate planning, and risk management. These areas of finance are often hard for individuals to keep up with, especially for high-net-worth clients with multiple properties and other assets within their portfolios. The complexities of these financial situations are also difficult to understand and require very advanced financial skills and knowledge in order to understand complex financing budgeting, taxes, and investment for affluent clients.
With training and guidance, a financial planner can provide individuals with a sense of direction within their personal budgets by reducing tax costs, repaying debts, and saving and investing for the future. This can allow a family or individual to help achieve their financial independence and retirement goals. Below are 8 other reasons why families and individuals need a financial planner.
Helping you achieve your evolving financial objectives
1. Save Time and Effort
Although personal finance and wealth management information is readily available on the internet, much of the knowledge accessible is either too complex for an individual without a financial background to understand, or the information is overpopulated with confusing and conflicting opinions on important financial topics and subject matter. This makes it difficult for families and individuals to determine which information is real and which information to trust. Having the time and ability to be able to sift through all of the financial information accessible online to determine which information is real and true is not feasible. Not only can a financial planner access the correct information and understand its authenticity, but they can also help save time for an individual or family. This allows them to focus on more important tasks leaving the essential and complex grunt work to the specialized financial planner whose purpose is to help families and individuals like yours achieve financial success.
2. Accountability and Organization
A financial planner can help keep families and individuals stay accountable. Their purpose, as financial planners, is to make sure that families and individuals follow their uniquely crafted budgets in order for them to achieve their financial goals and stay organized. Without a financial planner, keeping you and your family financially accountable is hard work and takes a lot of awareness and dedication, especially with a larger family with children than parents often love to spoil. In any financial endeavor, it is beneficial to have an impartial third party available to hold a family or an individual accountable. A trusted financial advisor can be that impartial third party a family or individual needs to stay on track of their finances and take control of their financial goals.
3. Trustworthy Financial Advice
A big concern for many families and individuals is finding individuals, often family or friends, to ask financial questions or to go to for financial advice. In many cases, individuals who are not equipped to provide financial advice or are not educated in the subject of finance can provide misguided information that could have a negative effect on the finances of a family or individual. Even if the information was merely misaligned with good intentions behind the advice, due to the lack of education or financial knowledge in the subject, the individual at play has influenced the route of your finances in the wrong direction, which could have harmful everlasting consequences that may be hard to recover from. When asking for financial advice from a financial planner, families and individuals can be comforted knowing that the advice provided is in their best interest. Financial planners are just some of the many types of finance professionals registered under the Registered Investment Advisors (RIAs) authority and are held to strict fiduciary standards. This means that the law requires these individuals to always put their client’s interests above all else. A financial authority such as a financial planner will, in turn, provide more beneficial and safe advice than a friend or family member could.
4. Exclusive Access to Investments
Financial planners often have exclusive access to investment opportunities that one may not find elsewhere. Without the use of a financial planner, certain mutual funds that are only available through an advisory relationship would not be available for the average investor. Family offices and wealth management firms that employ financial planners and advisors regularly screen these exclusive mutual fund options to determine if they are suitable for one’s investment portfolio.
5. Experience and Knowledge
Financial planners and advisors have the knowledge of financial education and the experience of the financial trade to succeed in assisting a client with their finance. An experienced financial planner has weathered the ups and downs of the market and other various investment vehicles, time and time again, having experienced every possible financial situation a client could have. With this added experience, financial planners are more adept and acclimated to drops and fluctuations in the stock market. Financial planners have witnessed the same common mistakes that individuals make time and time again and intend to prevent other families and individuals from making these mistakes as well. Financial planners are able to discuss one’s wishes and concerns with individuals to provide them with financial insight and guidance that one simply could not achieve on one’s lonesome. Relying on a knowledgeable, trusted, and experienced financial planner can help families and individuals avoid generalized investment advice and schemes that may not fit with the specific needs of one’s financial situation.
6. Tax Planning
Financial planners excel at proper tax planning. A financial advisor can structure investments in appropriate accounts to maximize tax savings. Taxes are complex, especially for affluent clients with multiple properties and other assets. This is why financial planners can help families and individuals with complex tax strategies that one would not be able to attempt on one’s own. Trusted and experienced financial planners will also help families and individuals avoid dangerous tax penalties by making sure they don’t withdraw or overdraw money from the wrong account at the wrong time.
7. Less Stress
Financial planners help remove the stress and worry from a financial situation or circumstance. No matter how worrisome a financial situation can appear to be, financial planners are knowledgeable in particular strategies to be able to find solutions to any financial problem or issue. Financial planners have gone through specialized training in order to identify these potential problems ahead of time and to develop step-by-step solutions to make progress on correcting a distressing situation. Worrying about whether or not one is making the right investment decision when it comes to planning for one’s future can be stressful. Lots of time and effort can go into planning or into making these decisions. Working with an experienced financial planner can take this unnecessary stress off of your shoulders.
8. Transform "Hopes and Dreams" into Goals
Financial planners are experts in turning individual financial dreams and goals into reality. Every family or individual has set financial dreams and goals they want to attain; however, most individuals do not have a proper step-by-step strategy in place to help them achieve their aspirations. The purpose of a financial planner is to help an individual achieve financial independence and success through a laid-out strategy and plan. These financial professionals can help individuals isolate the building blocks needed to support one’s retirement and financial goals. Through this planning, financial planners help build the confidence of a family or individual and the financial situation they are currently in, setting them up for financial success later down the road and a peaceful retirement.
A Certified Financial Planning (CFP) professional is prepared to improve and optimize one’s financial plans to make adjustments to a client’s ever-changing financial and retirement goals. Working with a financial planner provides one with the peace of mind to not worry about the planning and managing of one’s finances. A financial planner is educated and trained to guide individuals through the daunting process of planning one’s finances for certain financial situations in order to achieve one’s retirement goals.