This post was written by John Wenzel, co-founder of Archvest Wealth Advisors. John and I became friends through the XY Planning Network and I asked him to write some thoughts on the benefits of a great financial advisor as a guest topic for this site.
There are similar reasons why millions of people seek the advice of a financial advisor. They may want to create a budget or begin investing. Others may be ready to start a retirement plan. No matter our reasons, an advisor is poised to offer advice and lead us through our decision making processes. You may be aware of the services an advisor offers. However, are you keenly attuned to the benefits of settling in with a great advisor instead of just any advisor? Read on to discover four key benefits of working with someone who will always put your best interests first.
Keeps Your Goals in Perspective
In order to advise you on an effective financial plan, your advisor needs to know your goals. A great advisor goes beyond listening to you itemize all that you hope to accomplish financially. They will carefully weigh the goals you verbalize with the reality of your current financial state and the realistic potential to meet those goals or not. With their expertise, they can steer your goals so that you will be successful without encountering hurdles along the way. It’s often clear that we know where we want to go, but we just don’t know how to get there. The best advisors recognize that it’s not just meeting the big goals at the end, but it’s setting smaller goals along the way so that the journey is even possible.
Keeps Your Assets Moving
When it comes to getting the best returns from your investment portfolio, asset management is key. An excellent advisor will reallocate your assets as necessary to create more substantial growth. The market has the greatest impact on your portfolio, but it is not within your advisor’s control. Moving your assets around, however, enables your advisor to play to the changes in the market. Their carefully constructed game of “Stratego” will bring you better yields on your investments.
Keeps Your Emotions “In Check”
Your advisor, though working closely with you, will be able to keep your emotions from leading to behaviors that may negatively impact decisions along the way. A great advisor does not react the way their client does to market fluctuations or life circumstances impacting the financial plan. Nor will he/she allow you to immediately make substantial changes when you are in a reactionary state. As an objective third party, you can expect that they will adequately manage you as well as they manage the plan.
Keeps Your Plan Tax Efficient
If you thought making a financial plan was complicated, think about the tax implications of your plan and investments! Great advisors are educated in tax efficiency. None of us wants to see the tax shadow looming over our financial security. The best advisors work hard to understand and avoid negative tax ramifications.
Working with any advisor can bring positive results. Seek out a great advisor, and your benefits will be greater as they go several steps further to secure your financial health.
About the Author: John Wenzel is the Co-founder of Archvest Wealth Advisors, a Fee-Only financial planning firm located in the East Bay of San Francisco. Their offices are in the city of Walnut Creek, California. At Archvest, John works with high net worth individuals, executives and small business owners focusing on their planning needs around insurance matters, tax strategies, estate planning and investment management.