Some things are just too difficult or stressful to do on our own. Sometimes, what we need is a little boost or a jumpstart to get started on work that will ultimately improve our lives over the long term. It just takes the right motivation to energize ourselves, which is why it pays off when you’re working with a financial advisor.
For many, personal finances are like that. But that’s okay because if you know what you want to accomplish — say, a comfortable retirement — you can find help with the “how” by partnering with a competent, trusted financial advisor.
Like a nutritionist or a personal trainer, a financial advisor helps set up the right plan for you, then monitors and motivates you so you end up with the results that you want. Working in partnership with you, and helping you achieve your financial goals, is exactly what a financial advisor does.
Here are the four top benefits of working with a financial advisor.
1. Working With a Financial Advisor Offers Competence and Confidence
Competence means that financial advisors provide the critical “know how” that drive successful long term outcomes. Things like financial planning, asset allocation, building and rebalancing investment portfolios, and knowing when and how to collaborate with your other financial professionals.
Competence leads to confidence. When you’re working with a trusted financial advisor, you gain the assurance that comes from working with someone who will help you make the right decisions with your money..
2. You Receive Behavioral Coaching
Most of the big mistakes people make with their money are behavioral rather than financial. A good financial advisor is also a behavioral coach, providing education and guidance through the ups and downs of investing that challenge the emotions, emotions that can easily lead to decisions that could compromise long term goals.
Why? Because human nature left to itself often leads to failed investment decisions.
A financial advisor’s job is to help you make educated decisions with your money, decisions that will not only generate the greatest payoff for the long run, but which are also in perfect alignment with your goals and your values.
3. You’ll Save Plenty Of Time
Investing is a complex and time consuming process. It requires a good deal of time, energy, and focus. That is not to say that it is beyond your grasp. But is that how you want to spend your time? If managing your personal finances is your passion then do it.
But if it isn’t a trusted financial advisor can do most of the “heavy lifting” for you. You get to manage the outcome rather than the process. In return you get back your time. Time you can spend doing the things that bring you joy.
Your financial advisor can organize your finances with a step by step process to drive the outcomes you want for your life.
4. Working With a Financial Advisor Ensures Continuity
A financial advisor provides continuity in your financial life, further reassuring you and providing peace of mind. Having someone who knows your wishes and your goals, who can preserve your legacy, and protect those you care about adds to your own financial security and mental well-being.
You can rest assured that, no matter what happens, you have taken the right steps to make sure that the people you care about most will be taken care of.
This kind of continuity and comfort comes from working with your financial advisor to establish a financial blueprint that lays out the milestones on the path toward your best life. You and your advisor can always refer back to this blueprint to monitor the status of your progress and make any necessary changes to ensure you stay on track and on target.
This is why you need to work with an experienced advisor. You need someone to help you keep your costs and your emotions under control. It is worth it many times over.
It pays to start early when saving for retirement. If you do, you’ll have enough money for everything you need for as long as you live.