Generally speaking, busy people no matter how well educated or financially sophisticated don’t have the time or inclination to effectively manage their own financial affairs.
Most persons today are too busy keeping up with the changes in their own specialized areas to remain current with the ever-changing financial service industry. To prepare a financial plan with the same attention to detail as that of a professional planner would just take too much time and research. This would be time away from your family, personal life, occupation, business, and or civic responsibilities.
If your financial situation is being addressed by a Financial Advisor, your time and attention can be focused on effective business management and pursuing personal interests.
Many people have several advisors in place who provide advice only within their own area of expertise. For example, the broker is picking stocks and bonds, but without access to information concerning your total financial and tax situation. Thus he cannot provide the proper advice with respect to how to register those assets for income.
Your accountant may be doing a fine job of tax preparation, but generally speaking, cannot help you reposition assets so as to reduce next year’s taxes. Financial Advisors certainly are not intended to replace any of your existing advisors, with whom you have a satisfactory relationship. However, by evaluating your total financial situation, can co-ordinate strategies that do not interfere with any of your stated goals and objectives by focusing on the whole, rather than on a part. They can make recommendations that are consistent with your short and long-term financial planning strategies.
A financial plan which is not implemented becomes merely an educational experience. Worse than that, you have become aware of your financial problems but haven’t taken action to solve them. Your stated goals and objectives can never be met without putting the plan into action. Follow-through is critical!
A good advisor will ensure that all phases of your plan are properly implemented by your selected advisors, not only in terms of the types and categories of investments but with respect to your potential estate tax and retirement planning. All areas of this risk assessment are important since one overlooked exposure could wipe out the rewards of years of working and saving.
Financial planning is a dynamic process and should be reviewed on a continuing basis to verify that your goals are being met and that you are remaining on schedule since “nothing is as constant as change itself;” your goals, attitudes toward financial risk, and family circumstances will always be changing. Even if we as individuals were to remain the same, the financial world around us changes so frequently that constant monitoring is a necessary part of the planning process.
Political, tax legislative and economical changes are all things you should be concerned with. Thus the ongoing review and reporting also hold the planning firm accountable to you–our client. Quarterly, semi-annual or annual reviews ensure that any necessary adjustments are made before it’s too late.
Many people have expressed the sentiment that the planning process has made them much more comfortable with their financial situations, their financial questions and concerns have been resolved. Dealing with a financial advisor will give you peace of mind in knowing that your financial situations are being handled by a full-time professional who is dedicated to your financial needs and who is in constant pursuit of your goals.