3 Reasons to Hire a Financial Advisor

There comes a time in our lives when we need to ask for help. Sometimes we can turn to the internet or a trusted friend/family member for answers, other times we need to hire the help of a professional. Your finances are no different. There will likely be a time in your financial life when you need help, and may even look to hire the help of a professional financial advisor. Here are 3 reasons you may want to consider hiring a financial advisor:

  1. You are going through a major life change. Maybe you are transitioning to your retirement phase of life, starting a family, dealing with an unexpected loss, or going through some other life change. Regardless, there is bound to be financial complexity that a professional financial advisor can help you navigate. With life changes come new goals and new financial concerns, and a financial advisor can help you make sense of it all and make the decisions that are best for you and the ones that you care about.
  2. You are receiving a windfall. Whether it be an inheritance, the sale of a business, a sale of company stock in an IPO, or even a large bonus or commission, dealing with a significant and sudden influx of cash is a complicated process that involves crucial tax planning and a reevaluation of your financial plan, no to mention the decisions as to where and how to invest the money. A financial advisor can help you ensure that you are covered on the tax front, and help you make decisions with the money that are aligned with your values and financial goals.
  3. You are trying to make progress towards financial goals but are struggling to stay on track. Maybe you are trying to get out of debt, save to buy a house, or get on track with retirement savings, it can sometimes be difficult to determine whether you are truly making progress. A financial advisor can help you narrow down your financial ambitions into measurable goals and track your progress over time.

While any of the above reasons are fantastic justifications to consider hiring a financial advisor, there are also some common reasons that people hire financial advisors that, in reality, are not great reasons to hire a financial advisor, and likely to result in poor outcomes. Here are a few reasons that you may think about hiring a financial advisor, but probably shouldn’t:

  1. You are trying to get consistent investment returns that beat the market. Beating the market on a consistent basis is challenging for even the top investment managers. If you believe that a financial advisor can beat the market on a regular basis, you are likely sorely mistake. And if an advisor tells you that they will beat the market, you should be skeptical.
  2. You want someone to take over your financial life and do the work for you. While financial advisors offer a number of services, many of which are designed to lessen your burden while navigating your finances, you are still ultimately responsible for handling your personal financial situation. You can’t outsource your personal responsibility for your financial life, not matter how many financial professionals you hire.
  3. Your parents/friend/neighbor/coworker said that you should have a financial advisor. While this may be true in some cases, the decision to hire and establish a relationship with a financial advisor is an incredibly personal decision, and should be made when you, and only you, are ready. Don’t hire an advisor because of peer pressure, especially if you don’t feel like you need one.

There are times in our lives when we could all use some professional help, and our financial lives are no different. If you feel like you are ready to explore a financial advisor relationship, we at Greenspring are ready to help. If you are a participant in a retirement plan that we manage, go to www.greenspringadvice.com to schedule a 1-on-1 meeting with a member of our Participant Advice team. If you are an individual looking for a personal financial advisor, go to www.greenspringadvisors.com to learn more about our Private Client team, or go to https://go.greenspringadvisors.com/espring to learn more about our eSpring service for those just starting their wealth-building journey.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Recent Insights

Fleeting Fad or Future Fortune – The New Bitcoin ETFs are Here

While Greenspring likes some alternative assets and has included them in our client portfolios over the years, we do not think Bitcoin merits a dedicated portion of an investment portfolio. Bitcoin is almost pure speculation with little intrinsic value.  Unlike stocks and bonds, there are no profits, dividends or interest, and the price is based only on what a buyer is willing to pay.

Tax Drag: Picking Up Nickles

“Picking up nickels in front of a steamroller” is an old saying in the investment world to describe a strategy that has small, positive, and fairly regular returns, with the occasional huge risk that can wipe you out. Tax planning around your investments gets half of the saying right, in that tax planning is like picking up nickels, which can generate small, positive, and fairly regular returns – if you do it right.

Retirement Planning: Not One Size Fits All

The best way to achieve any goal is by implementing a plan. Whether you are 20 years or two years from retirement, it is never too early or too late to put a plan in place to achieve your retirement goals. We want to share with you some of the key considerations for a successful retirement.