Do You Need a Financial Advisor?

Do You Need a Financial Advisor?

Just like most people are headed to the gyms at the beginning of the New Year’s resolution wanting to hire a personal trainer to get them in the best physical shape, some are wondering how they can get in the best financial shape as well.

The same way you are frustrated with diet and exercise, the same if not more, can exist with your personal finances and the conversations you have with your significant other about it.

You may be thinking: “Do I need a financial advisor?  Can’t I do this myself? I’ve met many people who have achieved financial security without hiring a professional.”

Ask yourself, “If I was doing something that I thought was right, then later found out, it was wrong…when would I want to know?”  And if you answer is “YES”, would you DO something about it?  Then the answer is…

YES, you need financial advisor!

Obviously, there are some people who have become wealthy without the services and help of a qualified financial advisor. Some of them achieved financial security, in spite of the mistakes they made. A few of them have just been lucky in the stock market or in business.

However, the majority of today’s successful people do have a financial advisor. They did not inherit their wealth and they didn’t get it because of a special education, dumb luck, or even superior investment performance. Most of today’s financially secure families became debt free and truly wealthy because the learned to spend less than they earned over long periods of time. They were more concerned about the independence and security that having money brings, than spending money to have the appearance of wealth.

Why Most People Need An Advisor
As we’ve discussed in previous posts there is more to be concerned about in achieving financial security, than having made a lot of money in the stock market, in your career or business,  or any other way of accumulating assets. In most cases, it is ‘NOT‘ about how much money you have accumulated, it’s about how much Spendable Income you have in the future. And, everyone’s situation is unique, with different problems, concerns, wants and needs.

Consider these situations…

  • How do you set up your investments to minimize income taxes, estate taxes etc.?
  • How can you protect your assets from creditors?
  • How do you position your assets to maximize your eligibility for college financial aid?
  • What’s the best home mortgage for your family situation?
  • Which retirement saving vehicles are available and best for when YOU want to retire; 401K, SEP-IRA, Simple IRA, TSA, Roth IRA, traditional IRA, 403b, 457 plans, deferred compensation, annuities, cash value life insurance, etc.?
  • How do you choose the best investment options within those retirement plans?
  • Which companies offer the best products?
  • How about make-up provisions in these retirement vehicles?
  • Are there things you can do to maximize your company pension?
  • Do you need Long Term Care, Life Insurance or Disability Income and how much?
  • How will divorces and former spouses, affect your retirement income?

If you do a real good job of accumulating assets…

  • How can you minimize your income taxes during retirement?
  • How do you protect your social security from the hidden income taxes?
  • Should you have a trust, living will, durable power of attorney etc.?
  • How much do of what you have accumulated do you want to pass on to your heirs?
  • Do you KNOW if you’ll run out of money?
  • How do you avoid probate or minimize wealth transfer costs?
  • What about charitable giving and more?

These are just a few of the areas that a good financial services professional will help you to address in your financial planning.  I believe everyone needs a good experienced financial advisor.  There is too much information out there that most people aren’t aware of, to try to do it all themselves.

In fact, I’ve hired one for my son when he got his first paycheck.

There’s certain things I’m personally willing to do on my own and learn on the go.  But if time is money, I sure don’t want to waste it figuring out from too many mistakes so I’m prepared for planning my finances, next year.

Like I told myself after leaving an eight year, active duty career in the Marine Corps and having nothing to show for it, “I want the next eight years of my life to be DIFFERENT than the last eight years of my life!

Most people don’t know what they don’t know!

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