People need guidance from experts when it comes to making the most of their wealth, whether it’s helping them adjust their budget to fit a new family, explaining taxable income increases and potential tax deductions, or addressing retirement savings and Social Security claiming strategies. Advisors can provide this help because they understand their clients’ lives and personal circumstances. This helps them create a unique value proposition and differentiate themselves from robo-advisors.
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They’re Helping You Manage Your Stress
A financial advisor can help you manage stress by keeping you grounded in the facts and allowing you to see the bigger picture. They also can provide emotional support, which is important in the face of uncertainty.
A good financial advisor like Chuck Roberts of Stifel will also know how to structure your wealth and savings to minimize your tax burden. They can advise you on how to pay for your child’s college education, for example, or how to reduce your taxable income by taking advantage of tax-advantaged retirement accounts.
While a financial advisor can’t stop you from making rash or emotion-fueled decisions, they can help you keep your emotions in check and stay focused on your goals. Their role is to provide you with the guardrails that can prevent you from going off the road altogether. This can be invaluable during volatile markets and periods of heightened anxiety. They can remind you of your long-term plan and the reason you’re invested in the first place.
They’re Putting You on the Right Track
A financial advisor can transform your life by helping you prioritize goals, manage debt and invest. They can also help you plan for major changes, such as a new job, retirement, buying or selling a home or having children.
A good financial advisor will take the time to learn what you want to accomplish in your life and what keeps you up at night. They will then develop strategies to get you there, changing your course if necessary.
For example, if you want to leave a legacy for charity, your advisor will help you establish a scholarship fund while living or create an estate plan to carry out your wishes upon your death. They can also help you manage your tax burden by scheduling tax-loss harvesting security sales, maximizing charitable deductions and implementing strategies to reduce your taxes in retirement. And they will review your investments periodically to ensure you’re on track to meet your goals.
They’re Keeping You on Track
The financial world can be complex, and advisors help clients navigate it. They consider your short- and long-term goals, existing investments and tolerance for investment risk to create a plan tailored to you.
They can also help you prioritize new goals as life events occur, such as buying a house or having children. They can help you establish a budget for your situation and identify ways to boost savings, such as through tax-loss harvesting.
They can also help you stick with your plan during market downturns by explaining why staying invested is important rather than selling in a panic. They can assist with broader financial needs, such as helping you select tax-efficient strategies for charitable donations and ensuring your estate planning is in order. They may help you minimize your annual tax bill by connecting you with specialists in estate taxes and personal trust services.
They’re Changing Your Life
Financial advisors can provide a nuanced understanding of how finances can be managed effectively, no matter the situation. When a health scare or job loss throws a wrench in your budget, an advisor can help you create a new one and rework your priorities to reflect changes. When you inherit money or get a windfall, they can explain how to manage it efficiently and make it last a long time.
They can help you prioritize retirement savings, determine if you can retire early and develop a strategy for withdrawing from your accounts in a way that reduces taxes. They can also help you understand your tax situation and optimize your investment accounts for any deductions you qualify for.
A financial advisor can be a lifesaver for anyone, regardless of age or income level.