Getting educated about your retirement and wealth-management options plays a big part in planning your financial future. However, it can be perceived as an overwhelming process to understand what the right steps are for your individual goals and retirement options. This is where a financial advisor can help to guide you through the process as well as answer the questions and concerns associated with financial planning.
Whether you are nearing retirement, have questions about your current financial path, or just starting out and living paycheck-to-paycheck, a financial planner could be beneficial for you. A financial advisor helps tackle some of the tough issues relating to wealth management and personal money matters. They can assist with creating a personalized retirement savings plan with a timeline, build a plan to meet financial goals such as saving for big life happenings, or answer questions about life insurance.
The Research Behind Hiring a Financial Planner
In a recent study from Northwestern Mutual’s
2019 Planning & Progress Study, 92% of the 2,000 surveyed U.S. adults aged 18+ agreed that nothing makes them happier or more confident in life than when their finances are in order. Additional statistics from this research study included:
- 66% of respondents who had a financial advisor stated that they felt financially secure
- (compared to 30% of those who did not pay for professional help)
- 85% who worked with an advisor stated that they felt their personal life was heading in the right direction
- (compared to only 71% who did not have an advisor)
Additionally, individuals who work with a financial advisor are more likely to know how to balance spending now and saving for later, set specific goals and feel confident about achieving those objectives, and have a plan in place to weather economic ups and downs, according to the survey.
Having a Team Effort Approach
You go to a doctor when you’re sick, a mechanic when your car needs to be fixed, and hire a contractor when you build a house. Of course, if you had the time and knowledge to learn each of those professions you could do it yourself. However, majority of people are going to hire a professional to get the best advice with saving the most time. When it comes to your financial plan, you could do it yourself and there is nothing wrong with that. However, having the professional option to look at things differently along with the expertise to find ways to get the most out of your investments can take your financial plan to the next level.
Another situation we come across a lot is married couples where one spouse is a DIYer who handles all the finances for the family. Everything is fine until that spouse passes away, leaving the rest of the family without knowledge of their investments and guidance to continue on their financial plan. By working with a financial advisor, you’ve secured a financial plan going forward for your family in case something does happen. The team approach will bridge any gaps and allow the family to continue on their financial plan.
Taking the Emotion out of Investing
Because investing evokes emotion, advisors help their clients maintain a long-term perspective and a disciplined approach. The hardest part of investing is sticking to the plan through the best and worst of times. Abandoning a planned investment strategy can be costly, and research has shown that some of the most significant derailers are behavioral; the allure of market-timing and the temptation to chase performance. This is where having a trusted financial advisor with whom you have a strong relationship with is key. They should act as behavioral coaches, reminding you that the financial plan was created before emotions were involved. Discipline and guidance could be the largest potential added value a financial advisor can offer.
The Sgroi Financial Difference
As a client of our financial planning firm, you have access to a team of professionals dedicated to assisting you in reaching your long-term and short-term goals. Each of our advisors are supported by a dedicated administrative assistant to help you with any questions or concerns about your financial plan.
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