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When making big financial decisions or planning for the future, it’s common to feel nervous or overwhelmed. After all, these decisions can affect your quality of life and financial security. Whether you’re thinking about ways to build a comfortable retirement or how to help your kids go to college, you probably have lots of questions.

A great financial advisor will have answers. Choosing a partner to support your financial planning is one of the best ways to accomplish more with your money, reach important goals, and stay prepared for the future.

FINANCIAL PLANNING COMES IN MANY FORMS

Professionals in this field have a variety of specialties and credentials. Forbes describes specific types of financial advisors and planners, noting that members of this profession have different types of education and licenses and may be bound by different professional standards based on their role. There are also different ways that they may be compensated, which is an important consideration when choosing whom you’ll work with.

When meeting with a potential financial advisor, make sure you ask the right questions and feel confident that their advice will be based only on what is in your best interest. 

DO I REALLY NEED A FINANCIAL ADVISOR?

You may be able to manage day-to-day spending and saving with a budget app on your phone, but for long-term goals and complex needs, there’s no substitute for professional guidance. You need someone who will take time to understand your specific needs, goals, and risk tolerance, and offer guidance that’s tailored to your unique situation and life stage.

They should also be able to make essential financial concepts easy to understand and help you access products and services that fit your needs.

While you could take a DIY approach to planning and investing, working with a financial advisor offers some big advantages. Here’s why:

Planning and Investing Gets Complicated

Chances are, you don’t want to spend hours managing your portfolio, Googling terms you don’t understand, and trying to make sense of the market. A trusted advisor will help you create a financial road map to spare you the confusion and potential missteps that may come with figuring things out on your own. 

You Can Save Time

You want to grow your savings, build a secure retirement, and make sure your loved ones are provided for. You don’t want to spend lots of time looking over numbers in order to do this. The convenience you get from working with a financial advisor can give you more free time to enjoy your life today.

Your Plan Will Sometimes Need a Tune-up

Your needs and finances will change throughout your life. An experienced financial advisor will recommend ways to make sure you have a plan that’s right for where you are today, and they can make recommendations for upcoming events like buying a home, starting a family, or retirement. Also, if new challenges or opportunities arise – whether it’s a big medical bill, loss of a job, or a large inheritance – they can recommend ways to adjust your plan accordingly.

Objectivity Is Crucial

You’re personally invested in the success of your plan, which can make it difficult to make choices when emotions run high. Stock market volatility, new expenses, and other stressors can lead many of us to make impulsive or poorly informed decisions. The right financial advisor will look at the big picture and offer the objective planning and investment advice you need, helping you avoid some costly mistakes and enjoy more peace of mind.

KEY AREAS YOU’LL PLAN FOR

Here are some of the main areas where a financial advisor offers great help:

Retirement Savings & Investments

The decisions you make now are essential to ensuring steady income in retirement. Your financial advisor can show you how to make the best use of retirement savings plans like IRAs, roll over a 40(k) or pension from a previous employer, help you save for important goals (such as paying for your kids’ education), and diversify your investments based on your needs and risk tolerance (when you’re closer to retirement, protecting your savings will likely be just as important as growing it).

Tax-Advantaged Planning

Taxes may be a fact of life, but a smart plan can help lessen their impact on your finances over the long term. A variety of financial products, like IRAs, annuities, and education savings accounts, can offer specific tax benefits that could help you grow your money faster or enjoy benefits at tax time (either now or in the future). Your financial advisor can walk you through your options and create a plan that addresses potential tax consequences.

Protecting Your Loved Ones

You want to know that your loved ones will be taken care of if you’re not there. That’s why life insurance may be an essential part of your portfolio. Your financial advisor will help you explore your options and choose an option that will provide for your family’s financial needs and fit with your planning and investment goals.

Protecting Your Legacy

No one likes to think about end-of-life issues, but having a plan in place now can help you be confident that your family will be provided for in the future and your assets will be used and transferred in the ways that you want. Just as important, it can make managing the details of your estate easier on your family.

THE GUIDANCE YOU NEED, THE CREDIT UNION YOU TRUST

At American Heritage, we’re committed to offering you the right financial solutions for every stage of life. Whether you’re just getting started on your financial journey or looking to accomplish more with your financial plan, our experienced team of financial advisors is ready to provide the solutions and trusted guidance you need to move forward.

Learn more about our full-service Investment & Retirement Center (IRC) and set up your free consultation today.