4 Reasons to have a Financial Advisor in your Life

4 Reasons to have a Financial Advisor in your Life

What is the value of a financial advisor?

Among others, the personal touch. Here are four stories of how flesh-and-blood advisors you meet in person (as opposed to a robo- advisor, where your contact is digital or over a phone line or even compared to a DIYer) benefited their clients.

Here are some real life examples of how good advisors helped clients to overcome emotionally based decisions, stop them from making mistakes, helped figure out whether to make a big purchase, and deciphered arcane retirement plans. 

Planning is so very vital for your future. According to a study by insurer Northwestern Mutual, a large majority (72%) of U.S. adults believes that the economy will suffer future crises. But two-thirds of them don’t have a financial plan. Plans are not static. Once you have a plan in hand, ongoing contact with your advisor is vital to make the plan work.

Check out our blog post: Everyone Should Have a Financial Advisor, Even You

In our four cases, the advisor:

Prevented an emotional decision.

A client of a Wealth Management Firm in San Francisco, feared that the stock market was getting too frothy recently and thought it was time to sell. No one can predict the market, and the wisest course is to have a well-diversified portfolio that you stay true to through good and bad times. There is room for rebalancing, certainly, but panicked decisions are almost always bad ones.

The role of a good financial advisors is to gently guide the client back on the road to smart portfolio management. The best deed we have done for a client is simply telling him it is a bad idea to be ruled by emotions. The client in the story relented from this ill-chosen decision and was better off.

Headed off an investment mistake.

It’s amazing how often you come across seemingly great investment opportunities. Guess what? They are traps.  Recently an advisor in Miami, notes that a client knew “a guy” who could get him into a sure-fire money-making investment, a South African gold mine. Trouble is, there is no such thing as a sure-fire investment. The advisor managed to convince his client, through patient persuasion, that this great plan simply was not a good one.

Financial Advisors s tend to cringe when they hear about such bonanzas,  and know right away it’s a bad idea for the client. Read about how setting goals is key to staying on track.

Helped make a big purchasing decision.

The question of whether to buy or rent is a major item in people’s lives. For many, their home is their largest asset. A financial advisor in Overland Park, Kan., had a client who inherited some money and wanted to know how best to deploy it. He could buy a home for $150,000, or over the next 25 years, could pay out $300,000 in rent.

The advisor helped the client figure out that, in this instance, it made more sense to buy. The client likely would have money left over to put into other investments, which would not be so if he were shelling out for rent over the next quarter-century. 

Decoded abstruse pension details.

A knotty problem confronted a client in Columbus Ohio. The client, a fireman, had previously been a police officer for eight years. When he quit the force, he collected his pension money as a lump sum.

Now in his 50s, he wondered if he could buy back those eight years and thus boost his pension in the state-run pension fund for cops and firefighters.

The advisor crunched the numbers and discovered that, for $80,000, the client could buy back the lost time and end up with a pension worth $500,000. This gave the client the confidence that he and his wife will be able to retire on time and spend their later years doing what they enjoy.

Check out our blog post: How Trusts Can Benefit You and Your Family

This person-to-person advice and having a relationship with your financial advisor is invaluable. Buckeye Wealth Management maintains these kinds of relationships with their clients to help them live their best life. Learn more about our team here. 

Contact me to arrange a time when we might discuss which options are best for  you and your investment goals.


Actual names have been changed in the stories referenced above.