Managing your finances in a purposeful and strategic way is essential to help you reach the long-term goals you’ve outlined for your family, career, and retirement. If you’re a busy professional, high-income earner, or business owner, creating a financial plan can be especially complex. If you’re wondering if you should hire a financial advisor to manage this area of your life or develop a financial plan on your own, we have four questions to help you make an informed decision.
#1 Do you have the knowledge?
Do you know how to manage an investment portfolio and create your own financial plan? A lot of research and insight goes into managing your wealth for optimal success. Suppose you choose to manage your investments, for example. It’s important to have a long-term investment philosophy you can stick to based on your risk tolerance and specific financial situation. You will also want to do the necessary research when selecting the securities that go into your portfolio, and understand when and how to make trades, rebalance your investments, and employ various tax-saving strategies. Choosing to work with an advisor means an experienced expert will guide you.
#2 Do you have the time?
If you have the knowledge, that’s a significant first step. Still, if personal and professional obligations are a priority in your schedule, it may be hard to find the time to implement and monitor your portfolio and financial plan. Many people choose to delegate their finances to an advisor who understands their needs, is aware of their unique situation, and is focused on helping them reach their goals. If you can’t find the time to commit to your financial plans, an advisor can help.
#3 Do you have the desire?
Becoming well-versed in financial planning requires delving into topics such as taxes, investments, insurance, education funds, estate planning, and retirement planning—all of which have different and evolving strategies and regulations. While some people may enjoy digging into these subjects, others do not. Your financial plans should align with your values and long-term objectives, not be a burden or hindrance in reaching them. If you don’t feel like keeping up with the market or the latest tax codes, partnering with an advisor could be a useful option.
#4 Do you have the discipline?
This may be the most telling question you answer today regarding your financial plan and investments. Managing your finances is a highly personal matter, tightly connected to you and your family’s goals and security. However, do you have the discipline to continuously and objectively monitor your plans so they stay on track? Working with an advisor ensures your long-term goals aren’t subject to complacency, oversight, or impulsive decisions that may negatively affect your bigger picture.
We understand deciding between partnering with a financial advisor or taking on the challenge yourself is a big decision that will affect many areas of your life. These four questions can help lead you in the right direction based on your knowledge, time commitment, desire, and discipline. If you answered no to any of these questions, it might be worth contacting a financial advisor to discuss a plan for achieving your financial dreams. If you’re interested in learning more about choosing an advisor or have questions about our fee-only process, please contact us at 619-298-3993 or firstname.lastname@example.org.
Do you need a financial advisor?
Matt Ryan here with CCMI. Today I want to talk to you about four questions to ask yourself to evaluate if you need a financial advisor. If you answer no to any of these four questions, you may need an advisor or you definitely should give it some thought, as your financial life is extremely important and personal finances can be a complex area.
Question #1: Do you have the knowledge or can you get the know-how to manage your own investments, risk tolerance, rebalancing, researching your investment options, etc.? Or do you have the know-how to evaluate all the different tax savings strategies that might be available to you from a financial planning standpoint? If the answer is no, you might need a second set of eyes on your portfolio.
Question #2: Do you have the time to deal with it? If you have the knowledge, that’s great. Some of our clients are extremely busy professionals and just don’t have the time; they prefer to delegate this part of their life to an advisor and a firm that does it every day and knows the ins and outs of their situation. One of the advantages of having an advisor is that we help you through those strategies to take the workload off your shoulders.
Question #3: Do you have the desire? Some clients come to us just because they don’t want to take care of their finances. They would rather be focusing their time at work or with family rather than worrying about what is going on in the markets or if something in the tax code changed.
Question #4: Do you have the discipline? I would say this is one of the biggest decision factors when clients come to us for financial planning and/or to engage with us to manage their investments. We are there to kindly nudge our clients and stay on top of them to make sure they are doing the right things to stay on track with their finances.
I hope these questions sparked an idea or a thought that can help you in your financial life. If you answered no to any of these four questions and would like to talk with someone about what working with a financial advisor looks like, please reach out to me or another CCMI advisor and we’d be happy to have that conversation. As always, thanks for watching.
CCMI provides personalized fee-only financial planning and investment management services to business owners, professionals, individuals and families in San Diego and throughout the country. CCMI has a team of CERTIFIED FINANCIAL PLANNERTM professionals who act as fiduciaries, which means our clients’ interests always come first.
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