The Extraco Banks Blog

Financial Advisor: Here’s Why You Might Need One Today

Category
Financial Literacy
Posted On: October 20, 2022
financial advisor

 

Are you working toward any financial goals? Do you need help with meeting them? Whether you’re looking to get out of debt, start saving for emergencies or build wealth, hiring a financial advisor can help.

Sometimes we need a coach in life — someone to stand on the sidelines and cheer us on or guide us in reaching our full potential; a financial advisor is someone who does these things. A financial advisor can show you how to achieve financial goals you might not think are even possible. Goals like:

  • Eliminate debt
  • Invest your money wisely
  • Help pay for your children’s (or grandchildren’s) college education
  • Build wealth
  • Help with estate planning
  • Plan for retirement
  • Reduce tax liabilities

These goals, and more, are possible with an experienced, professional financial advisor. However, their role in these goals is not always clear. So, we’ll explain each goal better so you can decide if hiring a financial advisor is right for you.

 

Common Types of Financial Advisors

Financial advisors are not generalists; they specialize in certain areas of finance to help you. They receive special training and certifications in the areas they specialize in, so choosing an advisor specific to your goals is essential. Some of the most common financial advisors specialize in:

  • Financial Planning
  • Wealth Management
  • Investments
  • Taxes

These advisors can help you with various financial challenges, from debt elimination to saving money on your taxes.

 

Debt Elimination

A financial advisor will guide you on how to get out of debt, help you create a budget, negotiate with creditors, and create a plan to pay off debt. They also teach you how to manage your money better to avoid going back into debt in the future.

 

Invest Your Money

A financial advisor can help you invest your money wisely. Advisors specializing in investments can guide you in selecting the right stocks, mutual funds, and bonds so your portfolio maximizes yields and reaches your goals.

 

Wealth Management

A wealth manager is a financial advisor who helps you build, protect, and grow your assets. These advisors work with individuals, families, and businesses to develop strategies for building wealth and preserving it for future generations. Wealth managers develop financial plans tailored to your unique circumstances and goals.

 

Help Pay for College Education

Many parents start college savings accounts once their children are born. However, if you didn’t start saving early or need to save more money, a financial advisor can help, as they have access to investment products and services to help you save money faster and reach your college savings goals.

Every budget differs, and financial advisors understand this. They will work with you to create a plan that makes sense. They can also help you find scholarships and other student financial aid opportunities.

Working with a financial advisor is one of the best ways to ensure that your child receives the opportunity to attend the college of their dreams.

 

Retirement Planning

Saving for your retirement is crucial at any age. However, saving the money you need for retirement is easier when you begin early; this is yet another area where a financial advisor can help.

A robust retirement plan in action creates the best retirement funds. A financial advisor will work with you to develop a retirement savings plan and investment strategy tailored to your unique circumstances. They can also help you understand the different retirement accounts, such as 401(k)s and IRAs, and how to make the most of each.

 

Estate Planning

Estate planning is not the same as retirement planning, though the two are often confused. Retirement planning is about saving money for retirement, whereas estate planning is about what happens to your assets after you die.

A financial advisor can help you plan for both scenarios. They can help you create a will, set up trusts, and draft other financial instruments to ensure that your estate manager distributes your assets according to your wishes and will.

Your advisor can also help you plan for long-term care needs, such as in-home care or nursing home costs. It is essential to have a plan in place for any long-term care needs in your later years, as government-funded sources, like Medicare and Medicaid, do not cover all these costs.

Taxes

Some financial advisors specialize in tax planning. These advisors can help you save money on your taxes or avoid overpaying. In addition, they can show you how to take advantage of tax breaks and deductions you might not know about.

Conclusion

If you’re unsure whether you need a financial advisor, the best way to find out is to schedule a consultation. Many financial advisors offer free consultations, so it’s worth taking advantage of this opportunity.

Are you ready to level up your financial game and learn more about how a financial advisor might help you? Check out our website’s wealth and trust section for more information.

Sources

It Takes a Team | Extraco Wealth & Trust
Why You Should Hire an Investment Professional
What is a Trust?
What is a Fiduciary?
What Can Be Managed With a Trust?
Customized Asset Management

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