Paying for professional advice can offer immense value in various aspects of life, especially when it comes to financial matters. Seeking guidance from a qualified, fee-only advisor can empower individuals by providing them with personalized strategies tailored to their specific goals and circumstances. By having a pro on your side, you can benefit from their expertise and experience, which can empower you to make informed decisions and achieve your goals more effectively.
Paying for fee-only advice is like paying for any other professional service. It helps keep you on target and engaged with your finances. Think about paying for a specific service like yoga, versus just having a gym membership. When you pay for the private yoga class, you tend to show up because a) you are paying for it, and b) you are developing a relationship to help you reach your goal. With a gym membership, it’s up to you to make the commitment and show up and do the work. A professional advisor is more akin to the yoga instructor in our example. A fee-only advisor can help you stay focused and stay on target to reach your goals. You also develop a relationship over time and your advisor is there by your side for life’s challenges such as promotions, job losses or changes, new relationships, family emergencies, etc. This is also similar to having an attorney on retainer on an on-going basis.
Research shows that those who hire advisors tend to accumulate more wealth and experience reduced financial stress compared to those who do not seek professional help. According to Forbes, it could be well over an additional $1 million. By having a pro on your side, you can benefit from expert insights, access to specialized knowledge, and a structured approach towards achieving your financial objectives.
Both Vanguard and Russell claim those who work with an advisor grow their wealth an additional 3% to 5%. However, their main finding wasn’t the additional money, but the personal relationship with an advisor that mattered. You can read more and find both studies at The Value Add of an Advisor.
When seeking advice, it is crucial to ensure that the advisor is qualified and operates on a fee-only basis to avoid potential conflicts of interest (such as commissions on product sales, or bonuses for financial investments) and has your best interest in mind. Always ask your advisor about all the ways they are paid. This way, individuals can make informed decisions with confidence and work towards building a secure financial future. This ensures that the advice you receive is unbiased and tailored specifically to your needs and goals.
I’ll put in a plug for those who hold the Certified Financial Planner ™ designation. This denotes advanced education, training, and experience. The pass rate for the CFP® exam is usually in the mid-60% range. It’s challenging!
As an independent Certified Financial Planner™, I can help you plan for retirement or other financial goals. Contact me and let’s get started on a savings, investing, life change, or retirement plan. #talktometuesday #education #Hireaplanner #stressfree #savings #retirement #CFPPro #whatsMYnumber #investment #feeonly