Are financial planners worth it? Like many questions, the answer to this one is: it depends. If you have the time, skill, knowledge, and motivation to consistently and confidently make the right financial decisions—now and on an on-going basis—then you may not need to outsource your investment management. However, even if the intent is there, the reality is that it’s easy to neglect our personal finances when we’re trying to juggle so many things in life. If you’re operating at full capacity and just hoping that everything will work out, or if you’d simply prefer to spend your time focused on other things, then it’s important to seek professional guidance. Here are ten reasons why engaging with a financial planner is worth your while:
A financial planner’s primary purpose is to help you establish and navigate through a financial plan that is customized to you so that you can achieve your goals and objectives. They set you up for success and partner with you to keep you on course.
Financial professionals spend their lives immersed in the ins and outs of the financial industry. As such, their time is spent understanding changes in tax/estate legislation to determine how their clients might be impacted, and whether any new financial planning opportunities might emerge from these changes. In essence, they stay on top of things in the industry on your behalf, so that you don’t have to.
A financial planner can assist with tax planning, to ensure you are maximizing the benefits of tax strategies available to you when making financial decisions, and minimizing tax penalties and interest.
A financial planner can help with creating a long-term asset allocation that takes your goals and risk tolerance into account—giving you the freedom to worry less about the markets and focus more on your personal time.
While asset allocation is important, asset location is equally important. A financial planner can help you determine which assets you should hold in different types of accounts (brokerage, IRA, 401k, Roth IRA) to minimize the tax implications of certain investments.
A financial planner can help analyze complex compensation packages and make appropriate elections to ensure you are receiving optimal benefits from your employer compensation package.
“When can I retire?” is a common question people ask, regardless of job satisfaction. A financial planner can run several long-term retirement planning simulations to provide you with a snapshot of different retirement scenarios.
While we live in the here and now, it’s also important to prepare for the inevitable. A financial planner can help ensure that you have protected your loved ones through your estate, asset, and insurance planning.
Financial decisions—whether good or bad ones—can cost extra money when not executed in a timely manner, which often occurs when people try to go it alone. While financial planners charge a fee, their focus is to develop and implement appropriate strategies aimed at maximizing your wealth and minimizing certain expenses, whenever possible. This improves your bottom line in the long run.
Partnering with a financial planner gives you the confidence to make big financial decisions, and peace of mind to know that those decisions were the right ones for your financial situation.
Taking a scattershot approach to financial planning and investing based on limited knowledge can be short-sighted at best. At Radnor Financial Advisors, we work with our clients to get a full view on all areas of their finances in order to close gaps in their financial plan. We assist our clients with investment strategy, executive benefit planning, retirement planning, education saving, insurance planning, tax planning/preparation, and estate planning.
All of our Financial Planner and Financial Consultants are CFP® professionals, which is deemed as the standard of excellence in financial planning. Our CFP® professionals have met rigorous education, examination, and experience requirements to earn their credentials, and their expertise is reflected in the success we bring about for our clients. By focusing on comprehensive financial planning, we ensure that all facets of our clients’ financial lives are in line with their goals, objectives, and best interests.
Schedule a call with one of our Financial Consultants to review key strategies to help improve your financial independence, be more mindful of tax strategies, and start a conversation on how to reach your financial goals.