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Should I Hire a Financial Planner?

I bet you already guessed my answer. It’s yes; the answer is yes. End of post.


Just kidding.


The real reason I gathered you here today is to give you a few examples and data about why having a good financial planner can be helpful. Here are some areas financial planners can provide value.


Investment Risk & Performance

I find that most people go to advisors with this in mind. Questions like this: “Can you help me achieve higher returns?” or “Am I taking too much risk with my investments? Not enough?” The fact that these questions exist imply the inherent value a financial planner or investment advisor can provide - the peace of mind that your investments are doing what they should be doing for you. There are a couple of other ways that planners and advisors tend to help investors outperform - take a look at my post summarizing Vanguard’s Advisor Alpha study here.


Tax Savings? Yes Please

I always gather tax returns for the clients I work with. Why? Because it’s the best way to sniff out the best tax strategies. What type of account to contribute to, what types of investments to buy, whether to do a Roth conversion… These are all strategies that are near impossible to advise on without a tax return. But with your tax return, a good planner can bring up ways to lower your lifetime tax liability. That’s powerful stuff.


Organization

Okay, so this one’s a little boring, but that doesn’t mean it’s not important! Working with a financial planner can help you get more organized and make sure you’re not missing the little things like adding beneficiaries or getting the match in your company’s retirement plan. You may think you have it all covered - let me just tell you, most people are missing a few things. If you have anxiety around your money, hiring a planner can help some of that go away by giving you peace of mind around your financial decisions.


Limiting Financial Mistakes and Seizing Opportunities

This one’s a little vague - that’s because it’s different for everyone. There will be a number of big decisions and surprising financial events in your life. It’s best to have a planner who already knows your whole situation when those come up.

 

As always, keep in mind that you don't have to go it alone. Check out my website to see what it's like to work with me and reach out if you have any questions.


If you found this post helpful, help spread the word! But remember, this is solely for educational purposes - it's not advice.


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