Wealth Management – Why to Contact an Advisor

Wealth management services aren’t only for the “wealthy” as defined with those as millions of dollars of income…in fact, most people can benefit from the services of a wealth management advisor to help with everything from estate planning to life insurance, wealth transfer to retirement investing. Perhaps you’ve been moderately successful at investing on your own-but now you don’t have the time. Perhaps you’ve been unsuccessful at investing on your own-don’t beat yourself up. “Do what you’re good at” is advice given to many-and successful wealth management advisors are good at helping clients with a portfolio!

Of course, finances and wealth management are sensitive and personal subjects, so you’ll want to do careful research prior to finding an advisor. You’ll want to give careful thought to what you are expecting an advisor to do-offer you help on a transactional basis on certain products? Help you plan a long-term investing strategy on a fee-for-services basis?

People have different reasons for contacting advisors. They include:

– Planning for education-This is even more important as tuitions rise and the job market becomes more selective, making a college degree even more important. Here, an advisor may recommend plans such as state-by-state 529 plans, or other investments depending upon your time horizon. If you are expecting to be hit with college expenses for a child and have less than 10 years to invest-with nothing saved-talking to a wealth management advisor now is a good idea!
– Minimize taxes-This is especially true for those reaching higher brackets as their income increases. Here, an advisor might suggest a variety of tax-deferred investments that will give you income upon retirement (when you might be in a lower bracket).
– Portfolio performance-Some judge this by getting the highest returns, while others view it as more important to protect a portfolio from loss. Don’t believe anyone who can guarantee performance-no one can. Instead, ask about investing philosophy and examples of how they’ve managed client portfolios in good and bad times, to gauge how your own portfolio might be managed
– Help define goals-This is especially helpful for couples who may have different attitudes about money-working with a professional (who is objective and outside the relationship) can be quite helpful in creating a long-term plan that both investors can believe in.

Regardless of your reasons, many investors find that working with an advisor has positive long-term effects on their finances, investments, and long-term wealth management strategies.