A True Financial Advisor
A True Financial Advisor
When talking to many of my new clients, one of their biggest hesitations to work with me is that they already have a "financial advisor." However, after really talking to them and going over their situation with them, they realize they don't have a financial advisor, they have a Investment Broker. The only thing their advisor is helping them with is investing in the stock market and mutual funds. They use the one size fits all approach. This should be criminal! Everyone has different needs and a different situation. Plus, while yes, investing is an important piece of the puzzle, financial advising is so much more than this!
"[Financial advising is] helping people learn how to spend, save, invest, insure,
and plan wisely for the future, to achieve financial independence."
-Loren Dutton
1. Your advisor should teach you about your spending and saving!
You both need to be aware of your spending habits so together, you can craft a plan that is best suited for you. They should be able to help you find money that you are spending, needlessly. Additionally, they should help you put money away for savings. An emergency fund is an important piece of being financially secure.
2. Your advisor should invest for the future!
Your advisor should help you reach your retirement goals. No one wants to be forced to work their entire lives. Investing is one of the best ways to make your retirement dreams come true. They should be helping you put money away for your future. Please make sure, they are really talking to you and investing in the right places. They should not be using the 'one size fits all' method, but rather what is best for you in your unique situation and risk tolerance.
3. Your advisor should insure you!
The world is full of surprises, no one is guaranteed tomorrow. Insurance is an important piece of your financial puzzle. More than likely, you should have both life and disability insurance to guarantee you and your family's financial security.
4. Your advisor should help you plan!
The first thing any advisor should do when they sit down with you is get a picture-perfect image of where you are right now and what your goals are for the future. How can your advisor guide you if they don't know what you have or what your goals are?
A true financial advisor is so much more than someone who simply picks stocks for you. They are your partner in building a life of financial freedom and security. They know your story, understand your goals, and walk alongside you every step of the way — from managing your daily spending to protecting your family's future. If your current advisor isn't doing all of these things, it may be time to ask yourself: do I have a financial advisor, or just an investment broker? You deserve someone in your corner who sees the full picture and works tirelessly to help you achieve it. That is what real financial advising looks like — and that is exactly what you deserve.