5 Reasons to Work With a Financial AdvisorSubmitted by Butera Wealth Management, LLC on May 17th, 2019
Most of us start out thinking we can manage all of our financial decisions on our own. Then life starts to get complicated. It’s time to buy a house. You start having children who will need college educations. You decide to start your own business, or have aging parents to care for.
All the while, the stock market climbs higher, or plunges and you start to wonder: Am I making the appropriate investments? Will I have enough to retire? Am I making the right choices to meet my financial goals? What about a family illness, or a financial downturn—am I protected? To get answers to those questions and more, consider the five reasons that you might want to work with a financial advisor. Here’s the countdown:
The #5 Reason to Have a Financial Advisor: Be Prepared
What often spurs people to reach out for professional financial guidance is a major life event such as a sudden family illness, divorce, or inheritance. And an advisor can definitely help you navigate through a crisis and deal with issues from insurance to estate taxes.
But having an advisor in your corner before a crisis hits means they already understand your financial picture. Together you’ve thought through your goals already with an informed strategy, so unexpected events are less likely to throw you off track. “When you’re forced to react to unexpected financial challenges, rather than planning ahead, often your choices are limited.”2
The #4 Reason to Have a Financial Advisor: Keeping Track
Life is busy and complicated, and you don’t always have time, attention, or energy available to track the stock market and compare mutual fund performance, understand the latest changes to the tax code, learn about different long-term care options, select college funding instruments, and choose the appropriate benefit options from your employer. But your financial advisor does—that’s my job.
If you’re the pilot of a jet aircraft, you’re in charge of getting the plane where it needs to go and keeping the passengers safe. You’re busy flying, while your co-pilot is monitoring weather conditions, checking instrument readings, doing navigational calculations, etc. With a financial advisor, it’s like you have a personal money co-pilot, keeping track of your destination and letting you know if conditions arise that warrant your attention or a course correction.
The #3 Reason to Have a Financial Advisor: Education
Some of my clients have told me that, before they started working with Butera Wealth Management, they didn’t really understand what a financial planner could for them or why it would be worth working with one. That’s why we view education as an important part of our job. We’ll make sure you understand your options in any financial decision—the pros and cons—so you can make an informed decision.
We have years of experience, educational training, and specialization that allows us to help clients in a broad range of areas such as:
Budgeting and Cash Flow Analysis -- from managing your budget and cash flow, assisting with goal setting and major purchases like a second home, planning for educational expenses for your children or your own retirement and long-term health care, we can help you navigate the day-to-day and work towards your lifetime goals.
Portfolio Management – we’ll help you define your investment objectives, analyze and manage your investment portfolio, track asset allocation and implement strategies to help manage volatility.
Tax Planning – working with your CPA and/or tax professional, we’ll help you minimize tax liabilities, plan for anticipated gains and losses, and determine IRA and Roth IRA strategies.
Risk Management and Insurance – we’ll review your coverages and help you select the appropriate mix of insurance coverage for anticipated health care and long-term care needs, life insurance, disability and personal insurance to help protect you and your family.
Benefit Plans – from your 401K to group health, insurance, and other benefits, we’ll review your options and help ensure your employer-provided and personal financial picture is balanced.
Career Transition & Retirement Planning – between Pension Plans, IRA distributions, Social Security, 401K and non-liquid investments, we’ll evaluate the choices available to you and create strategies and timing based on your long-term goals and objectives.
Stock Incentives & Deferred Compensation – we help you understand your options, the income and tax implications, manage your risk and integrate with your overall financial picture.
Employment Agreements – before you sign, let BWM review general employment, stock incentive, and separation, and deferred compensation agreements to make sure they don’t throw a wrench into your overall financial planning.
Estate Planning – we’ll help you understand how the structures of an estate (wills, power of attorney, trusts, etc.) can help protect the interests of your heirs and ensure you leave a legacy, not a mess.
Gift Planning – incorporate annual gifts or advanced gifting in your financial planning with optimal tax impact.
Here’ at BWM we are also humble enough to know that we don’t know everything, so we regularly work with trusted partners such as tax and estate attorneys to make sure that all your bases are covered.
The #2 Reason to Have a Financial Advisor: Trust
Just like you trust your doctor to look out for your physical health, you can trust a good financial advisor to be looking out for your fiscal health. “Good advisers champion their clients…They do not give excuses. They build relationships over time to understand the complete context of a client's situation. They take seriously their responsibility” for managing investments that manage their clients’ goals and objectives, and executing these plans together with the client.
At Butera Wealth Management, we take the time to get to know our clients. From the very first conversation, we’re listening. We walk you through a process that helps us to learn more about your financial picture, goals, and concerns, while also providing information and letting you see where we can help you make informed decisions. The advice we give is always tailored to the context and objectives that matter to you.
The #1 Reason to Have a Financial Advisor: Financial Confidence
Life is always going to be full of surprises—no one can predict the future. But knowing that you have a plan in place that aims to provide a secure foundation to help manage your risks, adapt to changing circumstances, and keep moving you towards your goals. We work together to help buffer their airplane from storms, turbulence, bird strikes, and just plain bad luck, to help them work towards their intended destination.
There’s no need to be flying blind—let Butera Wealth Management help you design a flight plan.
1.Presley, Isaac, CFA, “Good Financial Advisor/Bad Financial Advisor”, in Seeking Alpha, December 12, 2017
2. Quote from Karen Burns, director of Enterprise Financial Planning at Merrill Lynch