Benefits of Working with an Advisor

Even if you keep an eye out for the latest financial news and your TV is constantly tuned to financial networks, it’s not easy to compete with the professionals when it comes to accessing valuable information, and the knowledge that’s required to digest and act on it. Not only do financial advisors often have resources at their disposal that retail investors do not, but they can devote the necessary time to the markets and have plenty of experience to lean on.

Many financial advisors have certifications that denote expertise in certain financial planning topics, from tax and risk management to investing and retirement planning. These certifications can involve hours of self-study, a rigorous examination, and continuing education requirements.

Watching the effects of stock market volatility play out in your portfolio can trigger emotional responses – it’s hard to avoid. When the markets are struggling and your monthly financial statements show losses, it can lead to panic and the urge to sell. Conversely, when the markets are flying high, it can be equally challenging to resist the temptation to buy more assets or increase the amount of risk in your portfolio.

Short-term market movements shouldn’t cause you to lose sight of your long-term plan, and an advisor helps you maintain that perspective. An advisor is someone you can look to for encouragement and objectivity when it feels like the markets are unpredictable. They can help ensure that your finances are properly positioned to weather volatility and you stay on track to reach your goals 5, 10, or even 20 years down the road. Investing doesn’t have to be an emotional rollercoaster – an advisor can shoulder that burden for you.

Investing is about setting long-term goals and then striking the right balance between risk and return based on your individual needs and time horizon. The process involves more than simply identifying investments that have recently yielded the highest returns – assets should be diversified across different sectors and asset classes to ensure your portfolio isn’t too vulnerable to movements in the market.

An advisor helps you develop a plan that meets whatever cash and other needs you have on the horizon while maintaining your long-term investment and life goals.

There’s a lot that goes into managing tax obligations, and the more assets and accounts you have, the more you have to consider. An advisor with expertise in tax planning can simplify this process for you and manage your obligations so you aren’t surrendering more than you need to. This can be done through different strategies such as charitable planning, tax-loss harvesting, and allocating investments to tax-advantaged accounts.

Are you someone who’s interested in making an impact with your investment dollars? What about supporting charitable causes? An advisor can help you allocate your investments according to your interests and charitable goals and ensure that your values-based investments fit within the context of your financial goals.