What is the benefit of working with a financial advisor?

Why would I want to pay one of you?

Answers

  • 3 out of 3 people found this answer helpful

    CFP®, ChFC, EA Redwood Shores, CA

    The internet has made information readily accessible. Your advisor is no longer “an insider” privy to any “hot tips” or ideas which are not already public.

    However the sheer amount information is hard to digest and sort. Advisor’s experience and knowledge of your background should serve as a filter, separating noise from signal and distilling only the timeliest information which is useful and relevant to you personally.

    You should work with advisor for the same reason you buy your coffee at a coffee shop, instead f growing, harvesting and roasting the coffee beans yourself. Your time is valuable and is better spent doing your work or with your family, letting a specialist do his job ( a concept economists call a “comparative advantage”). As long as advisors’ fee do not exceed the value he or she consistently provides, paying them to handle your affairs competently should not be a hard decision.


     

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    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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  • 1 out of 1 person found this answer helpful

    CFP®, MSFS San Luis Obispo, CA

    A good financial advisor brings to the table both experience and perspective. 

    Experience - I've devoted over 2000 hours a year for 10 years to understanding, analyzing and managing personal finance issues. Compare that to what you can devote to the cause on top of your day job, family and life commitments.

    Perspective - Our brains are not wired particularly well to make great financial decisions. Emotions drive more than 90% of your choices and they tend to cloud your better judgement. An advisor isn't as emotionally entangled in your "stuff" so is more likely to see your case in a more balanced way.

    This can help with investments for sure, but it REALLY comes in handy when it comes to the rest of your personal finances - your spending decisions and other choices that affect your quality of life both today and in the future.

    Was this a helpful answer?

    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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  • 1 out of 1 person found this answer helpful

    CFP® Leesburg, VA

    If discipline is destiny (and in personal finance, it's certainly a big piece), an advisor can be the discipline in the picture.  For example, an advisor will recognize a need for 'taking a flyer' and suggest you put a small amount aside (that won't impact wealth) so you can practice investing on your own.  An advisor will recognize your need to pay off your home and even if mathematically it makes more sense to leverage it, they will understand your need to have it paid for. 

    In a nutshell, your advisor is your guide, not your guru.  They listen to you and act in your best interest encouraging you to capture all the resources you have access to - your human capital, your money, your community, your spiritual life, your physical wealth/health.

    Was this a helpful answer?

    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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  • 2 out of 4 people found this answer helpful

    CFA, CFP® San Francisco, CA

    Everyone could use some direction and advice when it comes to their financial affairs.  The days when our parents and grandparents retired on company pensions and social security are no longer here for many of us who live in high cost metropolitan areas.  We are increasingly responsible for our own retirement nest egg, which on the surface is a very daunting prospect. Many of us also face the challenge of educating our children, taking care of aging parents, AND having enough money leftover for an enjoyable retirement ourselves.  By undergoing a comprehensive planning process, you can benefit from identifying insurance vulnerabilities, locating savings opportunities, and you’ll quantify all of your short and long term financial goals. Then, by making any needed changes today, you can avoid painful adjustments in the future.

    Most people wait until they are at a crossroads before seeking professional financial advice. Divorce, inheritance, a bad year of self-directed investments, or a good year for company stock options are all events that get people to finally stop procrastinating and instead engage the services of a professional adviser. Some already maybe working with a financial specialist such as their CPA, estate attorney, or insurance agent, but don’t have an overall general plan to connect everything together. You shouldn’t wait until events force you to ask for help, but should instead gain control of your affairs today. The right financial advisor can help you create a plan of action, invest your savings appropriately, and can guide you along your plan toward long term goal attainment. If done properly, you will save time, money, and feel more secure knowing that you have a professional at work on your behalf.

    Was this a helpful answer?

    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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    • 493 views

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