Benefits of Using a Financial Professional
Why work with a Financial Professional?
It is said that advice is the only commodity where supply always
exceeds demand, and this has never been as true as it is today.
Modern-day investors are bombarded by unsolicited (and often
contradictory) investment advice from the Internet and TV, friends
and relatives; with all this information, most find it difficult
to discern which advice is best for their particular situation.
That's why you should consider working with a professional
financial advisor- you can not only get advice that fits your
individual needs, but you can also get help implementing
a plan.
Some FAQ's about Working with a Financial Professional
Shouldn't I be able to do my financial planning myself?
There is plenty of information available about investing and
financial planning; it may be outdated or incorrect. Most financial
professionals have access to accurate, up-to-the-minute information,
ensuring your investment decisions are based on fact, not fiction.
Another trap in the "do-it-yourself" concept is time. To keep
on top of the ever-changing world of investments is a full-time
job, and chances are you don't need another one of those.
Isn't working with a financial professional just for "older
people"?
Time is perhaps the greatest asset on an investor's side, as
market volatility tends to decrease over the long-term, and
investment "tools" like compounding or tax deferral take time
to make an impact. While it is never too late to get started,
there is definitely an advantage to initiating a plan as soon
as possible.
Isn't working with a financial professional only for the wealthy?
A main purpose of financial planning is to help create wealth,
so that financial goals can be achieved; a financial professional
can help make those efforts easier and more effective.
Won't I lose control of my money if I work with a financial
professional?
When working with an investment representative, you will still
be the one making decisions; with a representative's input,
those decisions will be better informed. A financial professional
can also help you see options that might not otherwise be evident,
and to gauge the effect of your decisions on other aspects of
your financial plan.
Once I have a financial plan, can I just "set it and forget
it"?
Your financial plan can be affected by lifestyle changes such
as a marriage, divorce or birth of a child, and by external
factors such as changes in the tax laws or economic environment.
By monitoring your plan, your financial professional can help
keep you on track, and can periodically measure your progress.
Important Reasons to Consider Working with a Financial Professional.
Objectivity
Because your relationship with your financial professional
is a professional one, he or she can provide honest, realistic
advice based on experience, and free of bias. Even if you have
done some of your own financial planning, a financial professional
can provide a useful second opinion.
Technical Expertise
Some areas of financial planning are quite complex; by working
with an experienced financial professional, you can avoid potentially
costly planning mistakes.
Product Knowledge
A financial professional will be able to help you choose which
of the many investment alternatives available would be best,
given your goals and risk tolerance.
Accessibility
When you have a financial professional, you know whom to call
when you have a question, whether on an existing account or
an investment about which you want to know more. By meeting
periodically with your financial professional to review your
plan, you can make the most of your financial resources, and
make progress towards achieving your own future financial security.
For more information about how to choose a financial professional,
please see the guidelines, used with permission of the Forum
for Investor Advice.
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