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Working With a Financial Advisor

The Importance of Working with a Financial Advisor

The world of 50 years ago was a lot different than it is today. An individual often worked at the same job all his or her adult life, lived in the same house and stayed married to the same spouse. They looked forward to retirement and felt Social Security and their company pension would cover all their needs.

While our hopes and dreams may not have changed much over the years, the world has become a more complex place, especially when it comes to your finances. If you do not have a person you can depend on to provide comprehensive financial strategies, recurring review meetings and personalized attention to your goals and objectives than you would benefit in scheduling an appointment with Ruth at Financial Strategies Unlimited.

Ruth provides:

  • financial goal setting.
  • guidance on your current financial situation and develops a plan to help meet your financial goals by identifying your weaknesses and builds on your financial strengths.
  • recommendations about specific products and services.
    a review of your income, assets, liabilities, evaluates your insurance coverage
  • and your investment portfolio.
  • assessment on your tax obligations and examining your estate plan.

Read the Financial Strategies Unlimited company pledge.

Common misconceptions about financial advisors:

Most people do not need financial advisor

  • Truth: While it is true that you may have the knowledge and ability to manage your own finances, the financial world grows more intricate every day. A qualified financial advisor has the expertise to help you navigate a​ steady path towards your financial goals.

All financial advisors are the same

  • Truth: Financial advisors are not covered by uniform state or federal regulations, so there can be a considerable disparity in their qualifications and business practices. Some may specialize in one area such as investment planning, while others may sell a specific range of products, such as insurance. The independent financial advisors at Financial Strategies Unlimited look at your finances as an interrelated whole and can help you with many of your financial needs.

Financial advisors serve only the wealthy

  • Truth: Some advisors do only take on clients with a minimum amount of assets to invest. Many, however, only require that their clients have at least some discretionary income.

Financial advisors are only interested in comprehensive plans

  • Truth: Financial advisors generally prefer to offer advice within the context of a client's current situation and overall financial goals. But financial advisors frequently help clients with specific matters such as rolling over a retirement account or developing a realistic budget.

Financial planners are not worth the expense

  • Truth: Like other professionals, financial advisors receive compensation for their services, and it is important for you to understand how they are paid. But a good financial advisor may help you save and earn more than you will pay in fees.

How are financial advisors compensated?

When it comes to compensation, advisors fall into four categories:

  • Salary based--You pay the company for which the advisors work, and the company pays its advisors a salary
  • Fee based--You pay a fee based on an hourly rate (for specific advice or a financial plan), or based on a percentage of your assets and/or income
  • Commission based--The advisor receives a commission from a third party for any products you may purchase
  • Commission and fee based--The advisor receives both commission and fees Y

You will need to decide which type of compensation structure works best for you, based on your own personal circumstances.

When is it time to consult a financial advisor?

In many cases, a specific life event or a perceived need may prompt you to seek professional financial planning guidance. Such events or needs might include:

  • Getting married or divorced
  • Having a baby or adopting a child
  • Paying for your child's college education
  • Buying or selling a family business
  • Inheritance
  • Changing jobs or careers
  • Closing in on your desired retirement date
  • Currently retired and wanting a 2nd opinion on your current financial strategy

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