Successful People as Investors: Contemplating the Need For a Financial Advisor
Many of my clients felt confident handling their own finances. Then, they hit that crossroad when they realized that they could benefit from working with a professional financial advisor.
Going it Alone
As an investor, you may feel comfortable managing your finances without professional assistance. Perhaps your financial situation seems very straightforward. Or, maybe you have the time, inclination and information resources to do your own investment research. Perhaps you leave the financial decisions to your spouse. Or, maybe you're counting on the HR/Benefits department to ensure that you can live comfortably when your prime earning years are over.
Hitting the Crossroad
Even knowledgeable investors will often welcome a second opinion to either validate their financial decisions or offer an alternative perspective. My counsel to folks is not to be frozen by their doubts or insecurities--particularly when a major event is occurring requiring timely financial guidance such as a job change, rolling over a retirement plan, marriage, divorce, or planning for retirement.
Choosing a Financial Advisor
I believe it's always important to find someone whose philosophy, approach, and core values are compatible with your own. Equally important is how comfortable you feel with this person, how responsive they are, and whether they truly are listening to your needs and goals. Finally, consider whether you want someone who can provide counsel based on your overall financial situation; or someone simply interested in handling financial product transactions. I think that. beyond pure investments, an advisor should be available to review your complete financial needs on an ongoing basis and recommend adjustments as your circumstances change.
Products vs. Solutions
My strong belief is that clients do not want to be sold products; they want to be provided with solutions. My clients tell me repeatedly, that this is what makes me different.
We live in a complex financial world. One that extends well beyond stocks and bonds. My clients - inherently smart, strategic, solution oriented and successful - are seeking clear direction and proactive leadership to achieve their financial goals. They wonder about all the right issues:
Must we accept undue risk to achieve our financial goals?
How much should we be saving for our children's college education?
What tax minimization strategies should we be considering?
How do we protect the funds we've accumulated?
Should we re-consider our insurance needs?
How do we ensure a comfortable lifestyle in retirement?
How will we tax efficiently transfer wealth to our children?
What should we be thinking about that hasn't yet occurred to us?
In short, my clients want a trusted advisor to look at their entire financial situation - to put all the pieces together into a seamless package. To become, in effect, their personal CFO.
It's Your Decision
Perhaps you'll never feel the need to work with a financial advisor. But, if like many of my clients, making financial decisions seems overwhelming, or if you feel you're having difficulty keeping your long tern financial plans on track, consider whether a professional financial advisor could be of help to you.
David Biebelberg can be reached at dave@ewgadvisors.com or (732) 546-9353.