Why do You Need a Financial Advisor?

Have you ever wondered whether or not you need a financial advisor? Professional advisors say there is no magic asset number that pushes an investor to seek advice. Rather, it is more likely a major life event which motivates a person to seek out an independent financial advisor. Financial advisors generally recommend using an advisor prior to a major life event, such as marriage, having a child, a job change, starting a business or retirement. The reality is most people often make the mistake of waiting too long to make plans financially and start after a crisis –job loss, bankruptcy, divorce, death in the family, or when they’re running out of their retirement money.

Financial Advisor

Why do You Need a Financial Advisor?

Hiring a trustworthy, qualified advisor can actually be the best investment you make. Reliable and quality financial advisers are trained to deal with a variety of personal finance concerns and can help you set priorities to enable you to reach your financial goals, no matter where you are in your stage of life.

Here are some scenarios in which it pays to consider working with a financial advisor:

  • Big-Picture analysis: The most helpful task an advisor can assist with is developing a comprehensive, big-picture analysis of your finances. Personal finance is not just one item; it’s made up of many entities: savings, investing, retirement planning, estate planning, tax preparation and more. To succeed financially requires devising some kind of overall plan to address each of these issues in an intelligent and responsible manner. Your advisor will seek input from you as he or she plans each specific area in more detail.
  • Defining savings goals: With savings, your options expand. Without savings, your financial options will be vastly reduced. Advisors also know that saving for a reason is far more motivating than just “saving.” Most financial advisors will assist you in developing goals for your savings, both short- and long-term.
  • Building an investment portfolio: Most experts agree 90 percent of your investment returns are a function of your asset allocation. This implies how much of your money is invested in stocks, bonds, mutual funds, etc. Unfortunately, some people are too intimidated by all the conflicting investment information they hear to decide upon an asset allocation for themselves. This is an area in which a financial advisor can help.
  • Retirement planning: The most important long-term savings goal most people have is retirement. No matter your age, it is important to have a strategy in place that lets you retire at with a known sum of money. But where do you start — a 401(K)? IRA? Roth IRA? Traditional IRA? An advisor will help create a step-by-step retirement strategy involving which account(s) to use, how much to contribute and when to begin taking withdrawals.
  • Tax preparation: If you don’t have an accountant or don’t want to do your own taxes, a financial advisor can help connect you with a CPA to ensure your return is done correctly and filed on time.
  • Estate planning: Financial advisors will work with you and other professionals in putting together a will and other documents to ensure your estate is divided in accordance with your wishes.

Meet with at least three candidates, and do your own due diligence in verifying their credentials and making sure their specialty matches your needs. Are you looking for someone to help plan your retirement, or do you need someone to help manage your newly married financial situation? Ensure that the advisor’s expertise caters to your financial goals.

For more information on Summit Brokerage Services, an independent broker-dealer, visit www.joinsummit.com or contact us at (800) 354-5528.

This blog and website are for informational, educational and discussion purposes only, and the owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Summit Brokerage Services, Inc., Summit Financial Group Inc., and any of their affiliated entities and principals are not a law firms or an accounting firms, or substitutes for an attorney or accountant. Although topics may be discussed on this blog that may involve legal, accounting, or investment issues, nothing on this blog shall be deemed to constitute the practice of law, legal advice, investment advice, and/or tax advice. Summit Brokerage Services, Inc., and its affiliates do not, and cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies. The content on this blog is “as is” and carries no warranties. You should consult an experienced professional regarding tax consequences of specific transactions.

No reader should act in reliance on anything discussed in this blog without prior consultation with a licensed professional who is qualified to evaluate the reader’s individual facts and circumstances and offer an informed professional opinion with respect thereto. If any reader takes action or makes decisions based solely on the information on this blog without prior consultation with a qualified, licensed professional, the reader does so at his or her own risk and agrees that Summit shall have no liability resulting from such unilateral action or decisions by the reader.

Summit makes every effort to provide accurate and truthful information in its posts on this blog, but in no way expressly or impliedly warrants or guarantees the accuracy of its postings and/or the information posted here by others. All information is believed to be from reliable sources, however we make no representation as to its completeness or accuracy.

Summit may, on occasion, post links to information maintained on other websites. Such links and the information thereon are not under Summit’s control.  The mere appearance of a link to a third party site does not mean that Summit has undertaken a review or approval of the link and/or its contents.  Readers must treat information from third party links at the reader’s own risk, and Summit accepts no liability with respect to such third party information. Please note that the third party’s privacy policy and security practices may differ from Summit Brokerage Services, Inc., Summit Financial Group, Inc. and its subsidiaries’ standards. We assume no responsibility for nor do we control, endorse or guarantee any aspect of your use of the linked site.

Stay Connected

Subscribe to Summit Brokerage

Personalized Industry Newsfeed For You

Thank you. You are now subscribed.


Thank you. We will get in touch with you shortly.