Whether it's prioritizing your expenses, building your investment portfolio or planning for major life events, managing your financial life can feel overwhelming. One reliable way to
How a financial advisor can help you
At a time when free educational content is easily accessible through the internet, the benefits of a financial advisor may not seem clear. But while online sources can give you a broad understanding of certain topics, they are no substitute for a human with real-life financial knowledge who understands your unique needs.
These individuals provide a number of advantages that help you put strategies and concepts into practice. Here are three benefits you could potentially enjoy after teaming up with a financial advisor:
1. Understanding the big-picture perspective of your finances
Your financial well-being is tied to many individual decisions: what 401(k) investments to select, how much life insurance to buy, where to put money for an emergency fund and so on. Sometimes it can feel overwhelming.
Much of the value of a financial advisor is that they can see your financial picture holistically. Their goal is to understand your vision and your needs and make sure that every aspect of your financial life—from
Having someone with a more objective view of your money matters can keep your emotions from clouding your decision-making. A good financial advisor will get to know you and recommend what's best to do—or not do—when the market moves in a certain direction or life throws you a curveball.
2. Expertise that builds your confidence and sense of purpose
Even if you're relatively money-savvy, optimizing your financial health can be challenging when you go it alone. A financial advisor brings investment and planning expertise that can boost your confidence and strengthen your path toward achieving your financial goals.
A professional who is insurance licensed and securities registered can help you:
- Identify an investment mix that reflects your current risk tolerance, investment objectives and time horizon
- Strategize for the impact of taxes on your portfolio
- Create a tax-efficient retirement plan and gauge your progress
- Develop a strategy that prevents you from outliving your assets
- Protect your loved ones in the event of your disability or passing
- Design an estate plan that provides you with a meaningful legacy
A financial advisor also can coach you in better understanding your relationship with money. They even can pinpoint
3. Assistance navigating your major turning points
Life is unpredictable. With a financial advisor at your side, you can depend on someone who can help you prepare for and manage major events as they arrive. Among the many crossroads you may face are:
- Job or career changes
- Receipt of an inheritance
- Marriage or divorce
- Birth, adoption of a child or managing the care for a
special needs child
- Home purchase or refinance
- Funding a child's college education
Financial advisors help clients with these life stages and more, providing them with a nuanced understanding of how finances can be managed effectively across any situation. By leaning on their experience, you can feel more confident that you're making prudent choices that keep you on track toward your goals.
Is it worth it to have a financial advisor?
If financial advisors help people stay focused on goals and navigate surprises, why doesn't everyone partner with one? Research suggests that one of the biggest obstacles is their perceived cost. In Thrivent's 2022 Money Canvas Survey, 45% of respondents said they didn't seek out professional advice because they didn't have enough money for it. That helps explain why younger and lower-income respondents were less likely to hire a financial advisor than other groups.
But the truth is that obtaining personalized financial guidance may be more accessible than you think. You often don't have to pay an upfront flat fee to obtain financial guidance. And for more general financial insights, free tools like the
The 2022 Money Canvas survey suggests that among those who have worked with a financial advisor, having less personal and financial stress was one of the main drivers for seeking help. This highlights a potential lost opportunity for many adults as having someone to help organize your financial priorities is often precisely what's needed to reduce those emotional strains. Those who are most overwhelmed by their financial needs frequently benefit the most from partnering with a financial advisor.
If you're thinking about getting professional financial guidance but don't know if it's right for you, consider a no-obligation call or meeting