Warren Buffett once said, “never ask a barber if you need a haircut.” But honestly, here at Streamline Financial we’re not salesy, and we’re not desperate to work with new clients. And actually, we don’t work with anyone where the value that we provide isn’t more than the cost of working together. So, if you’re on the fence, in this post I’m going to share a few reasons why you might want to work with a financial advisor.
Reason #1: A Mistake Now Can Mean Losing A Lot
When you’ve been saving and reach a certain level of assets, you realize that a mistake could mean a big loss. A mistake now is one that you don’t want to try to afford. It’s important to be aware that every financial decision is made up of part finances and part emotions. And, as you get closer to your retirement date, the emotional side of these decisions gets stronger. I have talked to people who decided to move a big portion of their savings and investments into cash because they felt like it was the right thing to do. Ten years prior, they wouldn’t have made that decision. But now, because they’re getting so close to retirement where they’ll have to start using the money, they want to make it more secure, or they feel like it might be more secure in cash.
But there are better ways to make your nest egg secure and your income secure. And it’s not by buying insurance or annuity products. By making the decision to convert assets into cash, they don’t realize that cash could actually be the worst investment. When you factor in inflation and things getting more expensive, a $1 million in cash now could be worth $250,000 less in just 10 years. So, finding a good financial advisor can help you lessen the chances of making the wrong financial decision or possibly relying too much on the emotional side of things.
Reason #2: Avoiding Analysis Paralysis
Maybe you’re not exactly certain how to prepare for the four economic seasons that we could face over the next 10 years. You’re searching for answers by reading articles, or watching YouTube videos, or asking friends and family. Then you realize there are so many opinions out there, and many of them offer conflicting advice. When you realize this, you reach a point of analysis paralysis. We have seen it in a lot of people and it usually stops them from making the next step or taking the necessary changes to improve their financial life. Working with an advisor can help you break through the paralysis to effective action.
Reason #3: You Don’t Enjoy Finances and Investments
And the opposite can be true as well. Maybe you don’t enjoy learning about finances and investments. You don’t want to spend your free time learning, reading, studying, and making decisions by yourself, and then worrying you made the right choice. Rather, you want to live a life that you are enjoying; full of the things that you find exciting, fun, and fulfilling. You don’t have to worry about the money piece of life as much. Of course, you’re still aware, and your confident in your plan, but you’re not in the day-to-day management. Becoming an expert in the financial world is not on your bucket list. You want to do the things that you do best, and you can hire for the rest.
Sometimes we imagine it like you’re going on a brand-new mountain trail hike called The Retirement Trail. You can take the journey solo, or you can hire a guide who has traveled this trail hundreds of times with others who are just like you. Then, when you get to a river blocking the trail, the guide knows exactly what stones to step on that aren’t wobbly and aren’t slippery so that you can get across safely. And when you get to the rock wall, the guide has tools in his backpack to make the climb much safer and easier for you.
If You Decide to Work With an Advisor
If you end up interviewing advisors, they should be able to clearly communicate the value that they offer to clients. At the end of the first meeting with potential clients, we usually have a good idea on whether the value that we provide is going to outweigh the cost of working together. Because of this, there’s no question on whether it’s worth it or not.
If you are interested in working with me, click here to set up an introductory call. And if you think working with an advisor isn’t for you, check out my DIY retirement plan to help you navigate the next steps.