Did you know people typically enlist the help of a financial advisor when they’re around 55 years old? While seeking out professional advice as you approach retirement is certainly a smart idea, there’s never a bad time to experience the value a financial advice can offer.

Whether retirement is right around the corner or you’re a young adult wanting to get a head start on planning, an advisor will be able to give you the targeted advice you need to achieve your goals.

How a Financial Advisor Helps You…

Build Your Wealth

Asset allocation

Do you know how your portfolio should be dispersed across different asset classes? That’s exactly what a financial advisor is here to help you with. Not only do they ensure your expected return aligns with the level of risk you’re able to take on, but they also balance everything with your unique goals to ensure your investment decisions help you reach your next milestone.

Minimization of fees and expenses

A trustworthy financial planner works with you to select the most cost-effective investments and boost your net returns. If they’re a fee-only advisor (meaning they aren’t paid to promote or sell you certain investment products), they won’t be subject to the conflict of interest that can arise if they’re incentivized to sell you a product.

Protect Your Wealth

Guidance through market volatility

Financial planning is an inherently emotional process. After all, your financial stability depends on it. This makes it easy to respond to sudden market changes with knee-jerk reactions, rather than sticking to your long term plan. A financial advisor acts as a sort of behavioral coach, helping you remove the emotion for personal finance and make the decisions that always align best with your investment and financial planning strategies.

Investment portfolio rebalancing

As your investments generate returns at various rates, your portfolio will slowly shift out of balance, and with time, it won’t reflect your initial asset allocations at all. When this happens, investors need to sell assets from well-performing classes and invest them in classes that aren’t performing as well. This seemingly counterintuitive process can be difficult for many investors, but an advisor is there to remain disciplined and rebalance the portfolio so it maintains its initial characteristics.

Understand Your Taxes

Asset location

Tax-efficient investing adds value to your overall investment portfolio, and a personal financial advisor has the expertise you need to select the stocks, bonds, or mutual funds that will minimize your tax burden, maximize your returns, and maintain your overall portfolio asset allocation.

Comprehensive tax planning

A tax-savvy wealth advisor goes beyond asset location and looks for tax-saving opportunities everywhere. From tax loss harvesting and estate tax planning to general tax advice, an advisor is there to keep your tax liability to a minimum so you keep more of your money working for you.

How to Get the Most Value from Your Relationship

The most successful client-advisor relationships are a two-way street. Here are steps you can take to get the most value from your advisor.

BE HONEST

Your financial advisor will struggle to help you if you hold back key details. Communicate openly and honestly about your financial situation, what you want to achieve, and any concerns you may have.

TAKE INITIATIVE

The financial advisor may be the expert, but you should still play an active role in your finances. Review any resources your advisor provides, never hesitate to ask questions, and come prepared for each meeting.

HAVE REALISTIC EXPECTATIONS

Every advisor should be able to make informed suggestions, explain why they’re making them, and go over the potential risk involved. However, they can’t predict with certainty the future of markets and interest rates or how a recommendation will turn out.

Final Takeaway: More Value for Your Money

There are many ways to measure the value of a financial advisor, the most obvious being your investment performance and returns. What’s arguably more important, however, is the peace of mind and quality of life that sound financial advice can provide.

Guiding you through tough periods, helping you avoid costly mistakes, and serving as your financial advocate, an advisor can equip you with the information and mindset you need to achieve your goals and ensure your finances are always in order. In short, a tax advisor may cost money, but we believe the value they offer is priceless.

Start experiencing the true value of advice when you work with Ironwood Wealth Management. Reach out today to learn more about how our comprehensive financial planning services help you make sound decisions and reach your objectives, whatever your financial situation may be.