7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy
By Marina Benitez
When you hear the term financial advisor, you might picture someone who only works with the ultra-wealthy, managing millions of dollars in assets. This is a common misconception. In reality, financial advisors work with people of all income levels, helping them navigate the complexities of personal finance and achieve their financial goals.
And according to a survey* by MagnifyMoney, 95% of those polled who have a financial advisor believe it’s worth the money.
Whether you’re planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor — even if you’re not wealthy.
1. You Get Personalized Financial Guidance
Starting to save early and consistently is crucial for building a strong retirement fund. Expert advisors
Everyone’s financial situation is unique, and a one-size-fits-all approach rarely works when it comes to managing money. This is where personalized financial guidance becomes invaluable. Financial advisors tailor their advice to fit your specific needs, goals and circumstances. Whether you’re looking to create a budget, save for a major purchase or plan for long-term goals like retirement, a financial advisor can help you develop a customized strategy.
Imagine having an expert who understands your financial situation inside and out guiding you through important decisions and helping you avoid costly mistakes. With personalized advice, you can feel confident that your financial plan is designed specifically for you, taking into consideration your income, expenses, risk tolerance and future aspirations.
This level of tailored guidance can make all the difference in achieving financial stability and growth.
2. You Can Get Matched With A Financial Advisor for Free
If you’re not already wealthy, getting a financial advisor probably sounds expensive and out of reach. That’s why we like a company called Unbiased. They’ll match you with a financial advisor in your area — for free.
No two people have the same financial situation, which is why Unbiased matches you with the best financial advisor for your specific situation, so you get an expert in the areas you need.
There’s no obligation to hire them, and Unbiased screens every advisor to make sure you’re only getting matched with the best experts.
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3. They Can Help You Navigate Major Life Transitions
Life is full of significant events that can dramatically impact your financial situation. Whether you’re getting married, having a child, receiving an inheritance, facing job loss or divorce — or any number of major events — these transitions often come with complex financial decisions. A financial advisor can be an invaluable resource during these times, providing the expertise and support needed to make informed choices.
Consider the challenges of planning a wedding, buying a home or preparing for a new addition to your family. Each of these milestones requires careful financial planning to ensure you’re making the best decisions for your future. Financial advisors offer guidance on budgeting, saving and investing to meet your changing needs.
By working with a financial advisor during life’s major events, you can avoid common pitfalls and set yourself up for long-term success. Their expert advice ensures that you’re not only addressing immediate concerns but also planning strategically for the future.
4. You’re Likely to See Better Investment Outcomes
Investing can be a powerful tool for building wealth, but it often comes with risks and complexities that can be daunting to navigate alone. This is where a financial advisor can make a significant difference. Professional financial advisors bring a wealth of knowledge and experience to the table, helping you make informed investment decisions that align with your goals and risk tolerance.
Studies have shown that portfolios managed by financial advisors often outperform those managed by individuals. For example, a Vanguard study found that advisor-managed portfolios could achieve an average of 8% annualized growth over a 25-year period, compared to 5% for self-managed portfolios** . This increase in returns can have an important impact on your financial future.
Financial advisors provide expertise in diversification, risk management and market analysis, ensuring your investment strategy is optimized for long-term growth. They help you stay disciplined during market fluctuations, preventing emotional decisions that could harm your portfolio’s performance. By leveraging their professional insights, you can maximize your investment outcomes and work toward achieving your financial goals with more confidence.
Take Charge of your Financial Growth
Financial advice from a licensed professional can boost your lifetime investment returns by nearly 2x.
Many have benefited from expert financial advice. Consulting with a professional can provide valuable insights for your financial journey.
5. They Can Help With Retirement Planning and Stability
As retirement approaches, ensuring you have enough savings to support your lifestyle becomes critical. Financial advisors are beneficial in this process, offering expertise in managing assets, planning for healthcare expenses and optimizing retirement income. They help create personalized strategies that account for tax implications, investment choices and sustainable withdrawal plans.
A study by Vanguard found that retirees who work with a financial advisor are significantly more confident in their retirement preparedness than those who do not. Specifically, 84% of advised clients felt confident they would not outlive their savings, compared to just 52% of those without an advisor**.
Financial advisors can also help you avoid common pitfalls, such as overestimating Social Security benefits or underestimating healthcare costs. By continuously monitoring and adjusting your retirement plan, financial advisors ensure you stay on track, providing peace of mind and financial stability throughout your retirement years.
6. They’re Not Just For the Wealthy
A common misconception about financial advisors is that their services are prohibitively expensive and only accessible to the wealthy. The truth is, financial advisors offer a range of fee structures that make their expertise accessible to people at various income levels.
Many advisors operate on a fee-only basis, meaning they charge a flat fee, hourly rate or a percentage of assets under management. This transparency in pricing helps clients understand exactly what they’re paying for without worrying about hidden costs or conflicts of interest. Plus, the potential benefits and savings gained from professional advice can far outweigh the fees. Advisors can help you achieve better investment outcomes, tax efficiencies and overall financial health.
7. You Get Access to Expert Knowledge and Resources
Financial advisors bring a wealth of expertise and resources to the table that the rest of us simply don’t have. They’re trained professionals with certifications and comprehensive knowledge in various areas of finance, including investments, tax planning, estate planning and retirement strategies.
Advisors stay up-to-date with the latest financial trends, market conditions and regulatory changes, not to mention they have access to advanced tools and resources that are often unavailable to individual investors.
By leveraging their expertise and resources, you can get precise, personalized advice to help you achieve your financial goals more efficiently. And you can get matched with an advisor for free.
