Why you should have a financial advisor in 2024

Many people think of a financial advisor as someone that invests money for clients. While investment management is part of their duties and responsibilities, they can provide much more value. Think of a financial advisor as your personal CFO. As a client of a firm, the firm and its financial professionals work for you. They can help you deal with managing your current financial situation and planning for your future. It is incredibly important to find a firm whose company values align closely with your personal values. Your advisor’s job is to help you grow and understand your situation. Most wealth managers will use goal based planning to help you achieve milestones in your lifetime. Clients have many different goals and aspirations. If your goal is to retire from your 9-5 career and drink margaritas on a beach, your advisor will help you build a plan that lets you do just that. Some services financial planner can provide include:

• Portfolio Management

  Portfolio management involves investing client funds in a way that aligns with your personal situation. Factors that will affect how you should invest your money include your individual profile; your age, income, liabilities, investment time frame, and your risk tolerance. These important details help your advisor invest your money in a way that is comfortable and suitable for your situation. A 25 year old with few liabilities and 30 years to retirement will have a very different portfolio than a retired individual in their 70s.

• Debt management

  Accumulating debt is necessary for most individuals when making large purchases including buying a house, vehicle, or enrolling in a private school or university. Your financial advisor will help you manage your debt is the most efficient way for your situation. They can help you to find the best interest rates on purchases and create a plan that helps you pay down debt efficiently

• Budgeting

  This goes hand in hand with debt management, based on your available income and available savings, your advisor will help you create a budget so you can confidently fund your goals and pay your liabilities

• Retirement planning

  It is important to look for an advisor that offers retirement planning services. In most cases this service will be no additional charge to clients of the firm. Advisors will use financial planning software to create a roadmap for achieving your retirement goals.

• Estate Planning

  Your estate plan will tie in directly with your will. It is recommended that everyone with assets they may pass on to the next generation have a legal will on file to ensure that their assets are transferred according to their wishes. Your advisor will help to make sure that your investment accounts are not only transferred according to your wisher, but also in the most tax efficient way possible.

• Life, health, and long term care insurance

  Healthcare is incredibly expensive and unexpected health concerns can have a drastic effect on financial security. An advisor will help you to use insurance as a financial planning tool where necessary. Life, health, and long term care insurance can help you and your loved ones plan for the unexpected.

• Tax efficiency and planning

  The tax code in the United States has many complicated details and advisors are trained on how to manage your investments without incurring significant tax penalties. Different types of investment vehicles have different tax treatment. It is important to invest as efficiently as possible and your advisor will help you do so.