Fundamentally, financial advisors help you manage your money. They help you grow your wealth, protect your wealth, manage your taxes and live the life you envision for yourself.
A financial advisor is your sherpa for navigating the financial world; they’re a Gandalf to your Frodo.
So what does a financial advisor do?
Fundamentally, financial advisors help you manage your money. They help you grow your wealth, protect your wealth, manage your taxes and live the life you envision for yourself. Here are some examples:
- Helps you identify where and when to save your cash vs. keeping it in a bank account.
- Evaluates money decisions from different angles with you so you feel educated and empowered when making your decision.
- Creates long-term tax efficiency instead of just focusing on the current tax year only.
- Gives you confidence that no matter what life throws at you (or crazy idea you come up with), you will have someone you can trust to turn to and see how it changes your current life plans.
- Supports partners/spouses so they are on the same page for one, cohesive plan….in spite of different money scripts.
- Aligns your life goals with your money needs, wants, and wishes, so you can live your best life.
- Holds you accountable to what you said was important and helps you get stuff done.
Financial Advisors Help You Explore New Opportunities
Financial advisors open your eyes to strategies you were not aware of, or potentially were afraid of or didn’t understand. You can talk through these strategies with your financial advisor, so when you take action, you are comfortable with decisions. Plus, many people prefer to have an objective third party sounding board for all things money.
An advisor demystifies your options and takes the guesswork out of the decision. Once you have talked it through and evaluated it from different angles, we find our clients then have the confidence to stay on the path that best serves them.
But maybe that doesn’t entice you, so perhaps instead of looking at it from the benefits lens, we look at it from the necessity lens.
Prefer a video? We’ve got one for you: What does a financial advisor do (Video)
Financial Advisors Help You Navigate Risk
A split second bad decision can cost a fortune and can sometimes be irrevocable.
Imagine big, high stakes decisions like…
- When you should retire.
- How to make your money last in retirement.
- If you should buy that second home or a larger first one.
- If you should buy an investment that ties up your cash for a period of time.
Most people see the need to have a PCP – family doctor or GP. People even see this as one of the biggest negatives to moving.
“Ugh, I have to find a new doctor!”
Did you know a relationship with a financial advisor can be that important to you? Just as your PCP addresses your overall physical health and wellness, your financial advisor cares for your financial health and wellness.
So in this context, what does a financial advisor do?
- Track your financial vitals: Net Worth/Balance Sheet, Cash Flow Strategies, and Savings Priorities.
- When an issue is discovered, triage its urgency, present your options and help you evaluate which one is the best fit for you.
- Ask questions about your life to understand what is most important to focus on.
- Factor in your predispositions to certain life events and help you plan accordingly.
- Research strategies and financial decisions so you don’t have to.
- Keep you on track for a life of financial security and independence.
What Can A Financial Advisor Do For You?
The ultimate non-financial value a financial planner may bring to you is peace of mind. You are more at ease because you know your hard earned nest egg is being monitored by someone who genuinely cares about your future’s success.
Sometimes our emotions can cloud our judgments and make it hard to know what the next right step is.
A financial advisor helps you make better decisions with your money and align your goals with your resources.
We asked some of our clients this question, here’s what they said:
“When financial management isn’t your thing, it’s wise to seek the help of a trusted financial advisor who can guide you through important financial decisions and help you set goals for the future. It’s probably one of the most important partnerships you can have as an adult – not unlike the relationship with a family doctor. A financial advisor is looking out for your financial “health” and a secure future for you and your family.”
“A financial advisor provides a client with a complete evaluation of their financial profile, helps articulate life priorities and goals and then build a financial framework enabling them to meet their goals. They are a critical resource for making confident financial decisions for planned and unplanned life events that will maintain long term financial security.”
“A financial advisor helps you plan your financial future by listening to your goals and objectives in life and setting up a financial foundation to help you meet them.”
“Give me peace of mind that my investments/nest egg/future are being watched and cared for.”
“help you manage your finances in alignment with the adult you aspire to become”
“demystify financial strategies and take the guesswork out of big financial decisions”
“They act as a tour guide navigating the financial world. They help make you feel comfortable on your journey and open your eyes to things you were not aware of or were afraid of. They make you feel at ease with your decisions and help keep you on the path that is best for you.”
Well, there you have it. The real thoughts of people who work with real financial advisors at Spark Financial Advisors. If you’re thinking about working with a financial advisor, make sure you seek out a fiduciary. A fiduciary is someone who is legally obligated to put your interests ahead of their own (the financial advisors at Spark Financial Advisors are fiduciaries). It might seem like a basic requirement for a financial advisor, but unfortunately, it’s not.
Here’s a quick blog post to empower you on your search for the right financial advisor:
