5 Benefits of Working With an Advisor
By Alterna Wealth
February 14, 2024

As the old saying goes, “if managing money was easy, everyone would be rich.” The truth is, it’s challenging to manage money. Staying on top of your income and expenses can be difficult, and as life circumstances change, you’ll need to make budgeting and other financial adjustments accordingly.

Some people have the time, knowledge and interest to oversee their money matters, but most do not. That’s why working with a professional advisor can make sense. Just as you visit a doctor to address medical issues or consult with a lawyer about legal concerns, a financial advisor has the specific training and expertise to guide you through the complexities of wealth management.

If you’re unsure about working with an advisor, here are five important ways an advisor can add value.

  1. They’ll create your financial plan. Everybody has certain goals they want to reach. You could be preparing to buy a home, saving for your child’s education, starting a new business or planning for retirement. Whatever your goals may be, a great way to achieve them is to have a comprehensive financial plan. An advisor can construct and maintain a customized plan that takes into account your unique goals and other key factors.

  2. They’ll help you invest wisely. People understand the need to grow wealth, but investing poses many challenges. Investing well over the long term means keeping abreast of economic and market events to help determine what to buy or sell … and when. Fortunately, an advisor regularly follows the markets, has access to sophisticated research and can make decisions based on your objectives, investment time horizon and risk tolerance. They can build a diversified portfolio to help mitigate risk while enhancing return potential, and may rebalance or otherwise adjust your portfolio as circumstances warrant.

  3. They’ll keep your emotions in check. Money can be emotional, which is why people often act irrationally when making financial decisions. For instance, if stocks prices are declining you may be tempted to avoid further losses by selling, but it might not be prudent. Advisors understand market volatility and the importance of not panicking. They can help you remain focused on your long-term goals. This means continuing to save and invest with discipline, while not giving in to fear, greed and other emotions.

  4. They’ll engage other experts as required. An advisor has the skills and experience to help you manage your day-to-day finances and invest for long-term growth, but what if you’ve got specialized or highly complicated needs? Advisors routinely build a network of professionals – such as lawyers, accountants, tax specialists and estate planners – just for situations like this. Your advisor can obtain the specialized support you need and integrate their advice into your overall financial plan.

  5. They’ll help you navigate life. Different phases of life will bring about different needs. Early on, you might be interested in debt reduction, and then more-intensive debt management as you continue spending in order to build your life and perhaps raise a family. As your income and wealth grow, you may benefit from certain insurance coverage to protect your assets, and strategies to promote tax efficiency. Later in life, you’ll likely focus on retirement cash flow, philanthropic pursuits and estate planning. Whatever needs will arise over the years, an advisor can be there to help you address them effectively.

As you can see, working with an advisor yields many tangible benefits. Yes, there are some fees associated with receiving ongoing financial advice, but advisors provide considerable value in many ways and help increase your long-term wealth so you can face the future with confidence. If you’re interested in exploring whether personalized professional advice is right for you, please contact an Alterna Advisor today.