Do I need a financial advisor?

By Lew Nason

Insurance Pro Shop


Most people don’t know what they don’t know. The costs of hiring a professional advisor are minimal, compared to the savings and benefits you'll experience long term.

You may be thinking: “Do I need a financial advisor? Can’t I do this myself? I've met many people who have achieved financial security without hiring a professional."

Yes, you need financial advisor.

There are some people who have become wealthy without the services and help of a qualified financial advisor. Some of them achieved financial security, in spite of the mistakes they made. A few of them have just been lucky in the stock market or in business.

However, the majority of today’s successful people do have a financial advisor. They did not inherit their wealth, and they didn’t get it because of a special education, dumb luck or even superior investment performance.

Most of today’s financially secure families became debt free and truly wealthy because the learned to spend less than they earned over long periods of time. They were more concerned about the independence and security that having money brings, than spending money to have the appearance of wealth.

Why most people need an advisor

As we’ve discussed in previous articles, there is more to be concerned about in achieving financial security than having made a lot of money in the stock market, with mutual funds or any other way of accumulating assets. In most cases, it is not about how much money you have accummulated, it's about how much spendable income you have in the future.

And, everyone’s situation is unique, with different problems, concerns, wants and needs.

Consider these situations:
  • How do you set up your investments to minimize income taxes, estate taxes etc.?

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How can you protect your assets from creditors?

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How do you position your assets to maximize your eligibility for college financial aid?

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What’s the best home mortgage vehicle for your situation?

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Which retirement saving vehicles are available and best for your situation; 401(k), Sep, simple IRA, TSA, Roth IRA, traditional IRA, 403(b), 457 plans, deferred compensation, split dollar, annuities, investment grade life insurance, etc.?

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How do you choose the best investment options within those retirement plans?

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Which companies offer the best products?

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How about make-up provisions in these retirement vehicles?

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Are there things you can do to maximize your company pension?

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Do you need long term care, life insurance or disability income and how much?

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How will divorces and former spouses, affect your retirement income?
If you do a really good job of accumulating assets:
  • How can you minimize your income taxes during retirement?

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How do you protect your Social Security from the hidden income taxes?

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Should you have a trust, living will, durable power of attorney etc.?

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How much do of what you have accumulated do you want to pass on to your heirs?

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How do you avoid probate or minimize wealth transfer costs?

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What about charitable giving and more?
These are just a few of the areas that a good financial services professional will help you to address in your financial planning. I believe everyone needs a good experienced financial advisor. There is too much information out there that most people aren't aware of to try to do it all themselves.

Most people don’t know what they don’t know. The costs of hiring a professional advisor are minimal, compared to the savings and benefits you'll experience long term. And, in most cases there are no fees if you invest in products that the advisor makes a commission on.

“For the want of a nail, the shoe was lose; for the want of a shoe the horse was lose; and for the want of a horse the rider was lost, being overtaken and slain by the enemy, all for the want of care about a horseshoe nail.”
Benjamin Franklin