By Paul S. McNulty, CFP®
Do you cut your own hair? If you’re like most people, you don’t. Why not? Is it because you can’t hold a pair of scissors? Not likely. Or is it because you know that a professional stylist will do a better job than you could and they are worth the fee they charge? And if you tried to cut your hair during COVID-19 shutdowns, you are very aware of the value they provide.
What about your money? Do you manage all of that yourself? Despite how much stress money causes us, less than one-third of Americans work with a financial advisor to manage their finances and plan for their future. (1) But those who do might be on to something. Americans who work with a financial advisor are twice as likely to feel financially secure and happy with their life, not to mention their increased confidence that their finances will weather future storms. (2) In other words, they have discovered the incredible value that a financial advisor provides.
You can tell in one glance if a haircut looks good or not. With financial advice, it’s not quite so obvious. There are a lot of factors and areas where the value isn’t even quantifiable. Let’s take a look at the reasons why everyone should work with a financial advisor.
1. Insight For The Future
Often when it comes to finances and investing, people don’t know where to begin. They don’t even know enough to realize what they don’t know. Especially when heading into retirement, which is complicated, completely uncharted territory.
An experienced financial advisor can give you insight into things you need to think through or prepare for. Having worked with countless clients who have walked your same path before you, your advisor will have a better understanding of what lies before you. They can ask you questions that you would never think of on your own and can offer solutions that you didn’t even know were possible. They can see gaps in your planning or roadblocks that may come up as you move through life, giving you the gift of time to implement solutions and secure weak spots.
2. A Formal Retirement Income Plan
Certified Financial Planner™ (CFP®) professionals do so much more than just pick your stocks. They actively coordinate the accumulation, distribution, and transfer of your wealth, as well as the estate, tax, and financial planning areas of your retirement plan. An advisor who looks at the big picture of your financial life can help you optimize income and mitigate taxes in retirement.
For example, this type of financial professional helps you create a retirement income plan that strategizes when you take your withdrawals and what accounts you take them from first; not to mention, they also design a Social Security strategy that optimizes your benefits, minimizes Medicare confiscation, and addresses long-term care so you can feel confident that you’re on the right track as you pursue your long-term goals. The objective advice of an independent advisor can make an incredible impact on your financial situation in retirement.
3. Objective Financial Management
We are emotional beings. The more important something is to us, such as money, the more emotions it tends to stir up. Add sensationalized headlines, unstable markets, or personal crises to the mix, and it’s easy to see how emotions can overrule reason.
Unfortunately, emotional financial decisions are not usually wise ones. An objective financial advisor will recognize how your emotions affect you and be your voice of reason. They will be an anchor for you during turbulent times, not letting you drift off course on waves of emotion. A wise advisor will apply reason to your financial situation when you cannot, and protect you from potentially making devastating mistakes.
4. A Road Map For Your Journey
We naturally take a lot of risks in life, some minor, some major. But do you want to gamble with something as important as money? When it comes to the security of your future, it’s better to be safe than sorry, and that’s what a financial advisor can help you with. Using a personalized approach, your advisor can give you a road map for your future.
Plus, a financial advisor will hold you accountable and keep you on track, helping you maintain focus when life gets distracting, and encourage you to keep going when things get difficult. They will be your most rigorous coach and your greatest cheerleader. Sometimes just knowing that there is someone else who knows your goals and will ask about your progress is enough to keep you from overspending or getting lax about your saving.
Where We Come In
Insight, expertise, experience, accountability, reason. And that doesn’t even touch on the tax savings, investment returns, and other more quantifiable benefits an advisor can provide. Working with a financial advisor provides you with a one-on-one, long-term relationship with someone who is looking out for your best interest. No matter what changes you walk through, you can have confidence knowing that someone is acting as your advocate and financial mentor. At Boston Metro Advisor, our mission is to provide you with stability, time, and confidence. Leave the planning, implementation, monitoring, and course-correcting of your financial plan to us so you can focus on what’s most important to you. Contact us for a complimentary consultation by calling (781) 995-0253 or email me directly at firstname.lastname@example.org to chat with us about how we can develop a custom plan for you.
Paul McNulty is the founder of Boston Metro Advisor with over 20 years of experience helping people navigate the ups and downs of the economy toward the financial future they envision. His education consists of a Bachelor of Science in business administration from the University of Rhode Island and the CERTIFIED FINANCIAL PLANNER™ (CFP®) professional designation.
Paul’s experience and education have made him a multi-faceted professional capable of assisting people with virtually all their financial needs. His services include every facet of retirement planning, from 401(k) rollover services and income planning to wealth management and estate planning. Paul has been active in his community over the years as a youth sports coach. When he’s not spending time with his wife, Cindy, and their two children, who are both recent college graduates, Paul enjoys reading, playing golf, and fishing. Learn more about Paul by connecting with him on LinkedIn.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.