Financial Advisor

10 Reasons You Need a Financial Advisor

Christine R. Schmitz, MA, CPA, PFS, CFP®, LTCP Investing, Personal Finance 20 Comments

financial advisor

Have you managed your own savings and investments in the past? Are you now considering professional help? Don’t go it alone.

Here are ten benefits of working with a financial advisor.

1. Save Time

Although there is a plethora of investment information on the internet, too much information is not necessarily a good thing. How do you determine what information is good? Do you have the time or the background knowledge to sift through this vast amount of material? A good financial advisor can do all the heavy lifting for you, so you can spend more time doing what is most important to you—living life.

2. Less Stress

Life is busy. There’s no doubt that your day is full of stressors. Working with a financial advisor can help alleviate some of those worries.

3. Accountability

Let’s be honest. How many times have you made a plan with the intention of sticking to it, but then failed to follow through? It is much easier to lose steam or run off course when you are doing something complicated by yourself. In any endeavor, it is beneficial to have an impartial third party available to hold you accountable. Your finances are no exception. A trusted financial advisor can be that impartial third party you need to help you stay on track.

4. Trustworthy Financial Advice

One of the biggest concerns people mention about financial advisors is trust. They may have questions about whose best interests will be given priority. People who are Registered Investment Advisors (RIAs) are held to strict fiduciary standards, which means that the law requires them to always put their client’s interests first. They are also required to disclose every method in which they are compensated.

5. Exclusive Access to Investments

You may not have access to all possible investment options if you don’t use a financial advisor. For example, there are certain mutual funds that are only available through an advisory relationship. Working alone, you wouldn’t have access these investments. A reliable investment manager will have their investment committee regularly screen these exclusive options to determine if they are suitable for you.

6. Experience

Experience really is the best teacher. A good financial advisor has weathered the ups and downs of the market and other various investment vehicles, time and time again. They have also seen people who go it alone. Those people make the same mistakes—time and time again. An experienced advisor will be able to discuss your wishes and provide insight and guidance that you simply cannot get when you go it alone. Relying on a trusted financial advisor can also help you avoid generalized investment advice and schemes that may not fit your specific needs.

7. Tax Planning

One of the most important (and often overlooked) factors in successful investing is proper tax planning. A financial advisor can structure your investments in appropriate accounts so that you can maximize tax savings. They can also guide you through complex tax strategies that you should not attempt on your own, like tax loss harvesting. Trusted advisors will also help you avoid tax penalties by making sure you don’t withdraw money from the wrong account at the wrong time. Choosing a financial advisor with an accounting background is a huge plus.

8. More Prepared for Market Fluctuations

A financial advisor is also highly skilled when it comes to market fluctuations. Thus, they are well-equipped with the tools and strategies you need to keep your investments on track. I do not believe that it is feasible to try to time the market, and a good advisor will remind you that jumping in and out of the market is extremely risky. Historically, most who attempt to time the market will miss the high points, thus receiving a reduced return on their investments.

9. Market Savvy

Part of a professional financial advisor’s job is to constantly keep abreast of market changes. Not only that, they strive to be aware of specific details that can affect your individual investments. A trusted advisor will help you stay up to speed on market conditions so you can make better decisions.

10. Transform "Hopes and Dreams" into Goals

All of us have goals and ideal lifestyles that we want to attain, but most people don’t have a step-by-step strategy in place to help them achieve their aspirations. A financial advisor can help you isolate the building blocks you will need to help you build the life you want.

What are your dreams? I have found that by talking to clients about their dreams, I can help them make informed and educated decisions about whether or not they are on track to reach their goals. Through this planning, we build confidence and help clients take that next step, whether it be by changing jobs, becoming self-employed, or finding the right time to retire.

Contact a Financial Advisor

If you are interested to learn more about how we can help you reach your goals, please contact us for a complimentary portfolio review.

About The Author

Christine R. Schmitz, MA, CPA, PFS, CFP®, LTCP

Director of Wealth Advisory Services Learn More>>

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Comments 20

  1. Very impressive topic. All the mentioned reasons are actually worth to consider and sound more professional. Thanks for sharing such a helpful stuff.

  2. It was nice to know that financial advisors have an access to all possible investment options that can only be available through an advisory relationship. My husband and I are interested in investing to build our wealth. We want to get help in finding the best places and companies where we can make a profitable investment, so we’ll be sure to hire a financial planner soon.

  3. These points are great! Not many people understand the financial side of their business or even their livelihoods as well as they think they do and they are no where near as market savvy as they need to be. Brilliant post!

  4. I’ve been dabbling in real estate investments this year and am going to need some extra help figuring out my tax filings, so getting a professional would really help me. Getting maximum tax savings, as you said an advisor can get me, would really help me ensure that I break even on my investments from this first year, and I definitely want the help avoiding tax penalties from withdrawing from the wrong account at the wrong time. Maybe after my taxes are figured out, I can have the same financial advisor help me organize my investments for next year, as well.

  5. I’m glad to hear that financial advisors keep up to date on market changes so that you know your investments will be safe. That is really good to know because we want to be able to feel financially stable even when the market is not as strong! We better call a few financial advisors in our are to find out which ones are the most up to date on their market knowledge and best industry practices so we know we are going with the best option.

  6. Thanks for explaining this advice for finding a financial advisor. I’m glad that you mentioned they can help be an impartial party to help you stay on track when it comes to financial plans. This seems very useful especially if they can also help advise you on different options you have in regards to your financial plan.

  7. I recently took a new job and have been thinking about getting financial services to help me be on the right track for my future. You mentioned the two big reasons why I have been thinking about getting a financial advisor: investing and tax planning. Before reading this article, I did not know that certain mutual funds need to be accessed through an advisor, that is good to know that I would have access to these also.

  8. Awesome! Thanks for pointing out the benefits to have a financial advisor. Also, this will help us keep up to date on our financial investments. I love the benefits and expectations of what will happen to my financial goals. Thanks.

  9. You got me when you said that you can get help in alleviating your worries if you will hire a financial advisor who can help you to lessen your stress. My husband and I are interested in retirement planning because we want to secure our future. Our goal is to make sure that we won’t depend on anyone for all our needs when we retire. Since we can’t really find the time to check our financials due to our busy schedule at work, we’ll do all your tips.

  10. Thanks for sharing such useful information. I really appreciate your blog post. Financial Advisor helps you with your financial health so you can broaden what’s possible and obtain the life experiences that mean the most to you. Financial Advisor can help you reach your goals, today and tomorrow.

  11. Thanks for sharing the most valuable points that need to choose a financial advisor. A financial advisor can structure your investments in appropriate accounts so that you can maximize tax savings.Thanks

  12. It’s good to know that a financial advisor can wade through information about investments and markets on your behalf to save you some time. My wife and I would like to diversify our investment portfolio, but we both work full time and don’t have time to sift through all our options to find quality investments. We’ll be sure to look into our options for financial planners and advisers to help us find the best investments for our financial situation.

  13. It’s cool that you point out that a financial adviser can help you find smart ways to invest your money. I want to make sure that I’m taking good care of my financial future, so I’m considering speaking to an investment consultant soon. I’m going to search for a reputable investment consultant that I can use.

  14. Thank you for mentioning that working with a financial advisor can help you save money on your taxes. I want to make sure that I’m being smart with my money, so I’m thinking about hiring a financial advisor to help me do my taxes this year. I’m going to search for a good financial advisor that offers tax preparation services to hire.

  15. This is an outstanding post that’s filled with so many useful nuggets. Thank you for being so detailed on the financial advisor.

  16. It’s great that you mentioned that one of the benefits of having a financial advisor is they would help me stay up to date with the current market conditions to help me make better financial decisions. My husband would benefit from getting a financial advisor since he plans on investing in the stock market soon. I’ll tell him to find a reputable one later when he gets home. Thanks.

  17. I’m having a hard time fixing my finances, which is why I’m thinking of hiring a financial advisor who will be able to suggest some good investment strategies too. Anyhow, thank you for sharing here as well the importance of opting for a service that will help me stay on track. It’s also a good thing that you clarified here the importance of hiring an experienced and trusted service too.

  18. Nobody can expect what is going to be happen in future but you have to be financially confident about your financial resources for any kind of funds crisis.

  19. It’s great that you talked about financial advisors and how they come with past experience. Recently, my wife and I decided we want to invest in something and make our money grow for our retirement. We have no idea how to do so, so we’ll be sure to look for an advisor’s expertise. Thanks for the information on financial advisors and how they could improve our finances.

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