By Eric Coons
First, the bad news. The world’s economy is in a period of turbulence unlike any we’ve seen in modern history. Unfortunately, it doesn’t look like stability is coming anytime soon. The market’s unpredictability, along with socio-political events, may make you fearful and paralyzed.
The good news is that you can still rely on a competent financial expert to help you make the necessary strategic decisions that will impact you now and for years. This is particularly true if you are in or near retirement and are afraid that inflation will cause you to run out of money when you stop getting a paycheck. In challenging times, having a trusted, experienced income specialist on your side could help you avoid making mistakes with your money that you won’t have time to correct. If you don’t have an advisor as part of your “life team,” you will go through the chaos alone.
Economic downturns are indeed a cause for concern.
However, a retirement and income advisor will help you look ahead and create a blueprint for achieving your money goals. Numerous surveys support that a good financial planner is worth their weight in gold, adding value in multiple ways.
Having a competent advisor enhances the probability you’ll meet your financial goals. Typically, clients receiving professional advice have better outcomes. One study indicated that 8 out of 10 clients with advisors had an 80% greater chance of meeting their retirement goals.
An advisor can often help you increase your portfolio’s value. Your advisor may suggest products and services that improve tax efficiency. They might also regularly balance your investment portfolio or help you clarify your risk tolerance and attitudes toward money. These things could help you get better returns, even when times are tough.
Advisors offer emotional support.
Charts, outlines, formulas, and theories aside, money is emotional. That’s why emotional support is priceless during a recession. Clients with a trusted advisor in their network discover they are often less stressed and more optimistic about their financial futures.
Your advisor can help increase your financial literacy. Modern income and retirement specialists have up-to-date insights into market conditions and investment strategies. They also have access to tools and information to help you learn more about how money works. These financial professionals are constantly looking for advances in retirement planning that will give them and their clients an edge.
Effective advisors always want their clients to be financially literate and confident in their money decisions. They will help you break through the clutter and understand complex economic concepts. When looking for an advisor, consider their ability and willingness to teach you what you need to know to make the best money choices.
21st Century Advisors take advantage of technology. If you’re like most people, technology is an integral part of your daily life. It’s also become critical for financial services practices, streamlining client communication and increasing efficiency. Modern financial planners have ditched paper files and business cards for customizable client portals, financial planning software, and customer relationship management (CRM) software. Properly used, these tools free up an advisor so they can do what they love, bringing value to their clients.
Influential advisors are often fiduciaries. If you’re looking for a financial guide, you might seek one calling themselves a fiduciary. Fiduciary advisors look to be transparent with their clients and minimize conflicts of interest. This type of advisor rigidly adheres to industry best practices and always puts clients’ needs ahead of theirs. When an advisor claims the fiduciary title, they pledge to act in good faith, reveal all relevant facts, and ensure their advice is as accurate and thorough as possible.
Summing it up: Ultimately, market downturns and recessions should remind you that even healthy economies can change instantly. Volatility is worrisome enough. However, when you add volatility to other wealth-destroyers, such as increasing taxes and inflation, you may experience extreme pressure on your portfolio and sleepless nights.
Without a seasoned financial professional on your team, you may be forced to address these situations alone, without the benefit of a second set of eyes and an informed perspective, putting your wealth at risk.
If you’d like to know more about choosing your ideal retirement and income specialist, please get in touch with me anytime at (501) 743-1461.
