Financial advisors can offer valuable insights into a variety of areas. Whether it is tax optimization, helping you save for your children’s college education, or assisting you with your estate planning goals, they have many skills and tools.
Tax Optimisation
Many aspects of wealth management carry tax implications, including investment returns and the value of your property. Your financial advisor can help you navigate tax-smart strategies and potentially free up more cash to invest or add to your long-term savings.
They can also reduce your tax burden by taking advantage of deductions and credits. A good financial advisor like Chuck Roberts Stifel will be aware of changes to tax law at the local, state and federal levels that could impact you.
Having complete access to your investments increases your risk, so be sure to check with your adviser before giving them power of attorney and insist on receiving all correspondence regarding your accounts (not just investment statements). And don’t give them the green light to withdraw money from a retirement account without informing you; that can result in penalties or taxes.
Personalized Service
Wealth advisors can tailor their services to your unique financial situation, including assets, income, expenses, goals and aspirations. They can provide advice and guidance across all aspects of your finances, from investment management to tax and accounting strategy consulting, estate planning and philanthropy strategies.
Technology solutions that enable personalization at scale can help wealth managers meet and exceed client expectations. These tools allow them to rethink client interactions and provide personalized content and resources more likely to resonate with new and existing clients.
Moreover, technology tools can be used to automate repetitive tasks that free up the time and energy of advisors to refocus their efforts on the most important parts of their job. This enables them to serve their clients better, improve communication, and deliver a more efficient service model.
Investment Advice
Whether going through a major life change, buying or selling a business, planning for retirement, dealing with an inheritance or managing your parents’ estates, an independent financial advisor can provide holistic advice and guidance. They will meet with you in person and discuss your short- and long-term financial goals, existing investments and tolerance for risk.
They will help you set up diversified investment accounts such as 401(k) and IRA accounts that maximize tax benefits and long-term growth potential. They can also advise you on the best ways to prepare for a financial emergency, the impact of an economic event on markets, and timing market entries and exits. Independent advisors charge a fee based on the percentage of assets they manage, which is transparent, easy to understand, and incentivizes them to grow their net worth.
Estate Planning
A financial advisor can help you create a comprehensive estate plan to protect your assets and your family’s future. They can help you establish trusts that can provide for specific heirs, set age requirements or impose restrictions on how the assets will be used.
They can also help you manage your debt, create budgets that work for you, and develop retirement savings strategies geared toward your short- and long-term goals. When shopping for an advisor, look for one who has the heart of a teacher and wants you to leave their office feeling smarter than when you entered. The reputation of the firm they belong to, testimonials from current clients and your gut reaction can all play a role.
Insurance
When many think of a financial advisor, they imagine someone who can help them invest their money. However, a financial advisor can help with many other goals and decisions, including creating long-term wealth-building strategies, risk management and estate planning.
Advisors may also provide their clients with various insurance solutions and investments and offer multiple tools and calculators. Some financial advisors earn fees and commissions, while others are fee-only and do not sell products.
Regardless of what kind of financial advisor you choose, it is important to understand their costs and services before giving them complete access to your accounts. Be sure to check your transactions regularly and insist all correspondence relating to your accounts is sent directly to you.
