Why seek a financial advisor’s expertise

People often act independently when making financial decisions—from budgeting to purchases, to mortgages and credit cards. However, there are cases and stages in life when seeking advice from a financial professional can be beneficial. The Web has plenty of resources and reading material about personal finance and smart money management, but no one solution fits all. Every individual has a unique financial situation, and the best way to understand and manage it is usually through personalized advice.

 

Building a solid financial roadmap

With plenty of financial responsibilities to fulfill, creating a solid financial plan can be confusing, if not overwhelming. However, it doesn’t always have to be. Working with a financial planner can sometimes help by engaging in simple discussions around key themes like: paying off debts, when and why to use mortgages, funding a retirement account, planning for a vacation, etc. — all of these themes require smart money management to ensure good financial health. While some may try and tackle all of the above on their own, initial discussions with a qualified financial planner typically don’t cost anything and can often in the long run save a lot of money, time or both, or at the very least, point you in the right direction.

Financial advisors are also able to create cash flow estimates and financial needs analyses specific to a person’s financial situation. Sophisticated software can be combined with their own experiences to help forecast whether one’s financial needs will be met or whether changes need to be made. Clients will also gain a clearer understanding of where their money goes and what it will take in order to achieve a specific objective.

 

Effective wealth management

Hiring a professional financial advisor can help one gain insight into the various ways to preserve and grow wealth while at the same time, effectively managing every aspect of their financial life. Advisors typically develop knowledge and experience through courses, certifications and designations earned over many years, which they then pass on to their clients. Information about investing (stocks, bonds, etc.), inflation, insurance, debt management, and many other concepts are not usually discussed enough prior to decisions being made, which is usually one of the reasons why things go wrong. Through a number of discussions and what-if scenarios, advisors can provide advice or guidance using real-life examples or case studies in an attempt to reduce a client’s financial stress and/or help avoid potential pitfalls.

Getting rich or having a high-paying job is not a guarantee of lifetime financial security.  Even when one becomes successful, the advantages and benefits of continued use of an advisor increases. As wealth increases, it becomes as important, if not more important, to preserve what one has worked so hard to earn. The fear of losing it and starting again should come with great pause and consideration. With tasks ranging from coordinating large balances spread across different types of accounts to developing advanced estate plans, clients may have difficulty making the best financial decisions on their own. Advisors are specially trained to deal with such responsibilities and have the unique skill sets required to efficiently manage large sums of money.

Many high-caliber advisors have backgrounds in business and are especially well-informed of the many trends within the business world today, from the rapidly evolving franchising models to monetizing virtual assets such as websites and specialty apps, making them a necessary member to any business team.  Advisors can help their clients tap into industries, niches, or even markets that may not have been previously considered due to lack of access, but could be available through the other clients, contacts and connections of the advisor.

Seeking the services of a top-notch financial advisor doesn’t always come with a high price tag and should always be considered as an investment rather than an expense. The best ones are highly proactive and reach out to their clients with good news and bad news, strategies, and ideas. They value collaboration and put their client’s interests first before all else. Often, they are the difference between one’s financial success and failure.

 

LOM Private Wealth Advisors are dedicated professionals that are there for you and your family to provide guidance and bespoke personal services. One of its advisors, John Portelli, can be reached through John.Portelli@lom.com.

The information contained in this article is for information purposes only, and represent the views of the author. It is not intended as specific investment or financial advice, or a recommendation or solicitation to buy or sell any security. Any investments or strategies listed in this article may not be suitable for all investors. Past performance is not indicative of future performance, and as with any investment, prices may fluctuate. It is recommended that advice is sought from a qualified investment professional prior to implementing any financial plan. LOM has made every effort to ensure that the contents herein have been compiled from sources believed reliable, however LOM does not warrant the accuracy, adequacy, timeliness, or completeness of this information expressly disclaims liability for errors or omissions in this information.