Do You Need a Financial Advisor?
Just because we are financial advisors does not mean that we believe that everyone needs our services. While we are confident that we add value for those we do advise, we have laid out some factors below to help guide you as you decide whether you should hire someone like us.
Whether or not you need a financial advisor depends on your individual circumstances, financial goals, and level of financial knowledge.
Here are some factors to consider when deciding whether to hire a financial advisor:
1. Complexity of your finances: If you have complex financial needs or investments, such as owning a business, multiple properties, or a large investment portfolio, you may benefit from the expertise of a financial advisor. The more complex your situation, the more of an impact every move you make has when it comes to tax planning, estate planning, and your investments. You do not want a surprise bill at the end of the year when you file your taxes! Although we do not draft estate documents or prepare taxes, we have expertise in these areas and are up to date when it comes to things like tax law changes, which do tend to trickle down into every part of your financial picture, whether it’s obvious or not.
2. Lack of financial knowledge: If you lack financial knowledge or feel overwhelmed by financial decisions, a financial advisor can provide guidance and help you make informed decisions. This ties into our point above. If you are already working 40 hours a week, then taking kids to soccer practice in the evenings, you do not have time to do a deep dive on all the items mentioned above. You benefit from that being our job.
3. Time constraints: If you don't have the time or interest to manage your finances or investment portfolio, a financial advisor can take on that responsibility for you. Sometimes, life moves quickly, and your portfolio needs to be able to react and adapt to your changing circumstances. We take it a step further and look for ways to be proactive with our clients’ portfolios. We do our best to anticipate needs and life changes. If you are in the midst of a hectic life event, wouldn’t it be nice to just shoot us an email or give us a quick call so that we can make any changes necessary while you go deal with life? We think so. We have the time, and you do not. Again, it’s our job.
4. Financial goals: If you have specific financial goals, such as saving for retirement or buying a home, a financial advisor can help you develop a plan to achieve those goals. Our recommendations are tailored specifically to your needs and goals. If you need to forego savings in one area temporarily to meet a goal in another, we will help you find a way to make it work the best we can. There is always more than one way to approach a problem, and we are ready to help you with yours.
However, if you have a good understanding of financial concepts, have simple financial needs, and feel confident managing your own investments, you may not need a financial advisor. This is perfectly okay as well. There are many people who are very competent when it comes to managing their portfolio and more. We don’t take it personally. We think that’s great too.
If you do need a financial advisor, it is important to do your research and carefully evaluate potential financial advisors to ensure that they have the qualifications, experience, and credentials to meet your specific needs. You will find that each advisor here at Eclectic Associates not only has his or her college degree, but are also CFP professionals, as this is a requirement at our firm. We also have a few advisors who are MBA holders, and CFA charterholders as well. Among our advisors we have well over 100 years of combined experience and counting. If you think you could potentially benefit from our services, visit us at eclecticassociates.com to schedule an initial complimentary phone call with us.