The True Value of Having a Trusted Financial Advisor

June 19, 2023

Time for a reality check. When was the last time you balanced your budget? If the answer is somewhere between I can’t remember and never, chances are high that you’re leaving money on the table. Fortunately, you’re not alone.

62% of people surveyed admit they could do better at financial planning. However, just 35% of people actually seek help from a professional. Financial advisors like SECU Financial Partners offer expertise and guidance on topics like:

Interested in hiring a financial advisor? Get answers to the most commonly asked questions, and decide if hiring one is smart for your wallet.

Why hire a financial advisor – the benefits of seeking professional support

One of the most impactful resources you gain from a financial advisor is a personalized plan. This plan provides a roadmap to your financial goals. Along the way, your advisor offers guidance and support to help you tackle unexpected challenges. Ultimately, they empower you to protect your hard work and build the life you envision.

Professionals offer guidance when you don’t know where to start. Here are just a few of the key benefits of financial advisors:

  • Unparalleled expertise: Financial advisors are knowledgeable about investing, retirement planning, taxes, estate planning, and more.
  • Personalized support: After assessing your current situation, they provide financial advice mapped to your specific goals. They can even assist in optimizing your tax situation or developing an investment plan.
  • Unbiased perspective: Financial advisors offer trustworthy partnerships in emotionally challenging situations. They can help you make smart, goal-oriented decisions.
  • Risk management: Financial advisors safeguard your financial wellness by identifying potential risks and suggesting solutions.

SECU Financial Partners are not only experts in finance but also in listening. We know that making long-term decisions about your financial wellness can feel overwhelming. We find out what’s important to you and offer solutions that match your needs. Meet the team.

How much does a financial advisor cost?

The cost of a financial advisor should reflect the value and expertise they bring to the table. In the long run, the benefits are likely to outweigh the fees. The fees themselves can vary, but some common fee structures include:

  • Flat or hourly fees: These may range from a few hundred to several thousand dollars. Ultimately, the cost depends on the complexity of the services provided and the time required.
  • Asset-based fees: Many financial advisors charge a percentage of the assets they manage on your behalf. This fee structure typically ranges from 0.5% to 2% of your total assets per year. The exact percentage may decrease for larger portfolios.

No stocks, assets, or portfolios to worry about? That’s okay! Financial advisors aren’t just useful for people in search of investment advice.

Although they can provide vital expertise when developing an investment strategy, they can also help with other important milestones. For example, new parents may seek support from a financial advisor when they plan for their children’s college education.

In fact, research supports the value of getting professional financial help. Check out these numbers:

  • 80% of people who worked with a financial advisor during the pandemic reported they successfully grew their savings,
  • 49% of those who did not work with an advisor reportedly grew their savings.

So, are financial advisors worth it?

As experts, financial advisors are familiar with the intricacies of taxes, investment, and financial planning. They’re better equipped to identify opportunities to maximize your income and minimize your financial burdens.

There are many types of financial advisors with unique specialties, including:

  • Debt management
  • Education savings planning
  • Tax planning
  • Retirement planning
  • Small business planning

How to choose a financial advisor

Hiring a financial advisor is much like selecting a bank or credit union to keep your money in. You’ll want to conduct the typical research like reading customer reviews and seeking referrals from people in your circle. However, what’s most important in making your decision might actually have more to do with you than the advisor.

Your own financial goals and comfort level when discussing complex money matters will have a major impact on your outcomes. When deciding who to hire, select someone whose expertise aligns with your own financial goals. Clarify your financial objectives, such as retirement planning, investment management, tax planning, or debt reduction.

Most importantly, your financial advisor should also be a trustworthy partner. Finances can be uncomfortable at times, and it’s important to select an advisor that you can trust.

Full-circle financial planning

Eighty percent of people who worked with a financial advisor during the pandemic increased their savings. In contrast, only 49% of those who did not work with an advisor were able to do the same.

SECU Financial Partners take a 360 view of your financial well-being to design a plan that not only matches your lifestyle but also offers flexibility for the unpredictable moments in between. Ready to protect your hard work and future financial security? Learn more.

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