It goes without saying that, considering the events of the last few years, many of us experienced turbulence in our financial situation. For those who already had a financial advisor with whom to consult, they had the benefit of a guide through the pandemic, local and international situations, and all the ups and downs of the market and their personal financial lives.
Whether you’re still trying to get back into the swing of things or have been able to build (or rebuild) a foundation of stability, a financial professional can have an invaluable impact on the present and future of your finances. Here are five reasons to consider establishing the help of a professional in your financial planning.
They Can Re-Focus Your Financial Life
Between global events and personal developments – such as a career change, relocation, addition or loss to your family, disaster, or any other of a number of things – there is a high possibility that your short- and long-term financial habits were affected and potentially thrown off-course entirely. Whether it caused a delay in meeting your savings goals, altered your income stream or drained your emergency fund. Millions of people were impacted by the unexpected events of 2020, and you are not alone on the road to getting things back on track.
A financial professional can offer support and guidance as you get back on track toward your long-term goals. Everyone’s financial journey is unique, and a financial professional can provide you with personalized advice as your plans and goals change and grow.
Not sure where to start with your financial situation? An advisor can help you identify your needs and create both short- and long-term goals.
They Can Help You Stay the Course
Recent market volatility – from bank failures to stock crashes – may have made you panic over your portfolio.
Times of economic uncertainty can lead to panic selling, causing further market volatility. However, those who persist during times of turmoil tend to make educated financial decisions based on their personal needs and tend to maintain a long-term focus on their goals.
When you’re worried about what you’re seeing on the news, your financial professional can provide unbiased, expert advice that’s focused on your personal economy, not market trends.
They Provide Personal, One-on-One Advising
Today’s technology has created numerous accessible solutions for investors, including robo-advisors. Automated advisors may be a great option for young investors who are starting out investing a small amount at a time. For someone with financial goals looking to maximize their portfolio’s potential and tailor it to their long-term needs, a robo-advisor’s cookie-cutter experience won’t cut it.
Working one-on-one with a financial professional gives you the opportunity to build not only a customized financial plan and investment strategy but also a relationship with an actual person who can provide ongoing, personalized service that flexes as your news change. A financial advisor can truly get to know you and your priorities, focusing on your personal economy and concerns while keeping your long-term financial health top of mind.
They Can Provide Tax-Conscious Investment Options
Investments and other life events can change your tax obligations over time. For example, if you haven’t invested much in the past, you may not have made enough in dividends or capital gains to have to report them on your tax returns. If left unaccounted for, these potential tax obligations can shrink the tax refund you hoped to receive.
Your personal financial professional can help you make investment decisions that keep your potential tax obligations in mind. This can be especially helpful if your financial situation has changed in the last few years.
They Can Navigate Big Life Changes
Have you experienced a significant life change, such as a new baby, changed career path, divorce, or a new piece of property? A financial advisor can be a source of guidance, knowledge, and experience when navigating important events. Although many life milestones are new and exciting, they can also be expensive, time-consuming, and impactful on your financial situation. Knowing that you’re in the right hands gives you more time to enjoy life’s changes, rather than stress about the unknown.
If you’re looking for help getting back on track or charting your financial course for the first time, consider a financial advisor to help you see the full picture. If you’re already working with a financial professional, check in regularly to report any recent life events, career changes, or fluctuations in income. All of these can affect your bigger financial picture and portfolio, and having your most up-to-date information can help your advisor give you the best advice and service possible.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.