There are few things in the world as valuable as sound financial advice. It seems that everyone’s willing to dole out financial wisdom. There are plenty of options and plenty of theories and strategies about how to manage your wealth—axioms like “buy low, sell high” abound. But, doesn’t that leave you wondering just how much of it is good advice?
When you’re wondering what your next steps should be, it’s a good idea to turn to the experts.
The Expertise You Need
No matter who you are or where you work, you value expertise. In fact, you likely insist on it. You appreciate the customer service agent who has a deep knowledge of her company’s product and service offerings. You rely on the expertise of an auto mechanic to fix your car when something goes wrong. In the same vein, you count on your trusted physician to help you look after your body.
It’s a no-brainer to apply the same value in expertise to financial professionals. Experienced financial advisors have accumulated knowledge and skills that can put you on the right path to reaching your financial goals. In a world with so many investment options, strategies, and opportunities, knowing what approach is best for you is difficult and complicated. The advice of a talented advisor who studies financial markets for a living is invaluable.
Just How Valuable Is It?
Since you’re concerned with your money already, you might wonder if a dollar sign can be attached to expert financial advice. A good financial advisor will consider all the variables impacting your situation and devise a wealth management strategy that accurately fits your needs. If you’ve teamed up with a shrewd advisor and use the right strategies, you can bet your return on investment will likely be larger than if you were to work with someone else or do it on your own. Essentially, getting the right advice makes it more likely that you will generate better returns.
“Bigger and Better” Returns
Just like it’s somewhat difficult to quantify exactly how valuable financial advice is, it can be difficult to define just what a “bigger and better” return is. One simple definition is that it nets you more money in shorter time for less work.
But just as that return might vary among investments, “bigger and better” means different things to different people. For example, if you’re a conservative investor, you’re likely willing to trade more modest returns in exchange for taking less risk. As such, your return may not be as big as someone who’s more aggressive with his investment choices. By the same token, an aggressive investor is likely to demand a larger return more quickly to be considered “bigger and better.”
How Do You Recognize Sound Advice?
Many people can give financial advice, and it seems like everyone feels qualified to offer their opinions. So how do you know when you’re getting sound financial advice? After all, you’re staking your future and potentially your family’s future on the advice you follow. It can be difficult to filter out all the noise.
Instead of guessing and gambling, talk to a qualified financial advisor. Qualified advisors are licenced and registered to provide guidance to you on investments. Good advisors have a proven track record, and their clients will speak highly of them.
Solid advisors also consider your unique situation and goals, and they take those variables into account when they design a wealth management strategy for you. If your advisor doesn’t offer you personalized investment plans, you should consider looking elsewhere for your financial advice.
Still unsure how to recognize sound financial advice? Try this approach: Talk to an advisor and have him tell you what he believes, why he believes it, and how those beliefs are show up in his actions. If the explanation makes sense to you, odds are that you are on the right track with picking an advisor. If the explanation doesn’t make sense or the advisor cannot articulate an answer, look somewhere else for help.
This information is not intended to provide specific tax, legal, or business advice and may not be relied upon for the purpose of avoiding any tax penalties. Lewer Financial Advisors is a multi-state registered investment advisor domiciled in Missouri. Lewer Financial Advisors is a member of the Lewer group of companies.