Managing your finances is an ongoing process, especially since as your wealth grows so do the complexities. Financial success goes beyond how much you make and rather focuses on saving, growing, and ultimately sharing the wealth you’ve made. Financial advisors can help you navigate the journey by prioritizing your goals, developing a plan to reach them, and helping you adjust along the way.

We, as financial advisors and planners , encourage working with a team of professionals, however, the journey first starts with you. What are your needs? Understanding your pain points will help narrow your search in finding an advisor. There are specialized advisors that can help you in their niche, or there are more holistic planners, like Manning & Napier, who believe in planning and accounting for all areas.

When deciding if you need a financial advisor, ask yourself the following…

Do I feel overwhelmed in managing the complexity of my finances?

Retirement is often synonymous with financial planning as you save for the day you clock out of the classic 9 to 5. The closer you get to retirement, the more beneficial working with an advisor is. That is not to say one doesn’t need an advisor until they’re approaching retirement. In fact, there are notable planning opportunities during each decade where you may feel the expertise of an advisor is worthwhile.

When you’re in your 20s you are settling into a full-time career and therefore are contributing as much as possible to your retirement account, making a budget that works for you, and planning how to begin paying down any debt. Then, during your 30s, the focus is on saving (hopefully with increased earnings from your career) for retirement but also a down payment for a home or your growing family. Your 40s is when retirement planning becomes the number one priority by maxing out contributions, incorporating additional investments, and paying down debt. The last leg before retirement means that during your 50s you’re making your retirement plan more granular as you outline your ideal lifestyle and income sources. Then your 60s is the transition period where your retirement plan takes action and you plan for Social Security, review Medicare options, and explore tax management and estate planning.

While an advisor isn’t needed for every financial to-do in one’s life, needs vary by individual. What you want help with may not be the same priority as someone else. That said, the crux of the above is accounted for in a custom financial plan that your advisor helps you create. A comprehensive plan includes:

• Financial Goals and Objectives: Identifying your short-term and long-term goals – such as retirement, buying a second home, or funding education – helps set a clear direction for your financial strategy.
• Income and Budgeting: Evaluate your current income streams and expenses to understand your cash flow and make adjustments if necessary. This helps with budgeting and ensuring that you live within your means.
• Investment Strategy: Develop an investment plan that aligns with your risk tolerance, time horizon, and goals. This may include asset allocation, diversification strategies, and investment choices.
• Tax Planning: Implement strategies to minimize tax liabilities while following rules and regulations. This might involve tax-efficient investments, deductions, and credits.
• Retirement Planning: Create a plan to ensure you have sufficient funds for retirement. This includes determining how much to save, choosing retirement accounts, and estimating retirement expenses.
• Estate Planning: Structure your assets and estate to ensure they are distributed according to your wishes. This includes wills, trusts, and estate tax considerations.

A thorough plan also includes insurance planning, debt management, and cash management, with regular review and recommendations at least annually.

Planning pays off

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Could my finances benefit from guidance and advice from experts?

Earn, spend, and save – these are three pillars of finances, but what about the nuanced rules, strategies, and tactics to, once again, keep your wealth growing? Take taxes, they’re unavoidable, yet there are strategies for lowering your tax bill.

A financial advisor plays a crucial role in guiding you through complex financial strategies to help keep and grow your wealth. If we continue with tax management, they craft tailored strategies to minimize your tax liabilities. This involves leveraging tax-advantaged accounts, such as IRAs and 401(k)s, engaging in tax-loss harvesting, and optimizing available deductions and credits. By staying updated on the latest tax laws and opportunities, advisors ensure that you make the most of any tax-saving strategies available.

While wealth management requires a set of must-dos, planning with an advisor to identify what strategies to implement and when and how to maximize those opportunities will make a noticeable impact on your plan’s success.

Do I want support in my money mindset?

At the end of the day working with a financial advisor can greatly enhance your money management by addressing both behavioral finance habits and time management. Advisors help mitigate biases and emotional responses that can lead to poor decision making. They provide structured guidance and help you implement disciplined financial practices, ensuring that tasks like budgeting, tracking expenses, and planning investments are consistently managed and align with your objectives.

A financial advisor enables you to make more informed and deliberate financial choices, leading to confidence that you’ll achieve your financial goals.

Deciding on an advisor

If you think you’re ready to work with an advisor, then keep the following in mind when selecting one. Look for an advisor with relevant credentials and experience, such as a CFP® (Certified Financial Planner) or CFA® (Chartered Financial Analyst), who operates under a fiduciary duty to act in your best interest. Other considerations that can vary by advisor are transparency in their fee structure, ensuring that their services are the right match for your needs, that your communication styles are a fit, and overall personal compatibility with the individual.

Your financial journey is always evolving, and you should feel confident and supported in your plan. Whether you’re reevaluating your relationship with your advisor today or are exploring one for the first time, you shouldn’t feel alone in your journey.

Please consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.