For fiscally responsible individuals, it can be hard to determine if you should hire a financial advisor or manage your finances on your own. There really isn’t one answer for everyone. For some people, it makes sense to manage your finances without professionals like a net worth advisor. For others, the benefits of hiring a financial advisor make the decision easy. In order to make that determination for yourself, we at Delta Wealth Advisors have put together this brief guide to help you understand what a financial advisor is and when you should consider hiring one. We’ve even included a brief quiz so you can assess if hiring an advisor is right for you. Let’s get started.
What Does a Financial Advisor Do?
A financial advisor is someone who helps guide your financial journey and gives you additional information that you can use to make informed decisions. Remember the last time you went to a museum? You probably had the option to take a guided tour or go through the exhibits on your own. While you can certainly have an enjoyable time and learn a lot by wandering through the halls and reading plaques, you will probably come away with a much richer experience by taking a guided tour. After all, the docent knows a logical progression through the exhibits, leading you through in a way that will enhance your visit and give you insights that you wouldn’t have gotten without their professional tour.
Financial advisors can help you chart your course by assisting with financial decisions like:
- Inheritance and estate planning
- Long-term care planning
- Business investments
- Life insurance policies
- Wealth management
- Strategies to increase your wealth long-term
Really, a financial advisor can do an enormous amount to help you achieve, maintain, and grow wealth.
Do I Need a Financial Advisor?
It depends on your unique financial situation. In general, if you fall into one or both of these two categories, we usually recommend that you hire a financial advisor.
- You have a significant amount of money saved. Here at Delta Wealth, we consider those with $1,000,000+ in assets as someone who could benefit from a financial advisor. However, this number isn’t a hard and fast rule. If you have anywhere from $50,000-$1,000,000+, you may want to consider hiring someone.
- Your financial situation is complicated. The more variables you have, like owning a business or having many investments, the more you can benefit from the advice of a financial professional. We can also help with one-time events like a large inheritance so you don’t have to worry about tax implications or unexpected issues.
Note that there are fees involved. For further information on Delta Wealth Advisor’s fees and services, see the ADV 2A.
What Are the Benefits of Hiring a Financial Advisor?
The main benefit from hiring a financial advisor is the simple fact that they help you manage your finances. Other benefits include:
- Making a plan - When attempting to manage your finances on your own, it’s easy to neglect a comprehensive plan or get focused on the wrong aspects. With a financial advisor, you have a professional who can help you set the right goals for the future and work out a plan that will help you actually get there.
- Understanding your investment picture - Along with making a general plan, financial advisors can help you understand how each type of investment may impact your bottom line. This will help you understand where you should invest and why.
- Avoiding tax issues - Taxes are complicated, especially for those with investments, businesses, or contracting work…the list goes on and on. At Delta Wealth Advisors, we can help you complete and file your taxes so that you’re less likely to have any unpleasant surprises during tax time.
These are just a few of the benefits that you can gain from using a financial advisor. There are many more that you will discover as you work with us, like the peace of mind you’ll have from having a trusted financial professional to lean on.
Should I Get a Financial Advisor in My 20s?
If you’re a young person with a high-earning job but have not yet built up your assets, you may still want to consider hiring a financial advisor. At Delta Wealth Advisors, we have created the Trailblazer Path for people just like you. If you’re a High Earner, Not Rich Yet (HENRYs) who has less than $1 million but has a bright future and needs help with more than retirement, this program is designed specifically for you.
Do I Need a Financial Advisor for My 401k?
You may want to consult a financial advisor for your 401k. They can help you make a saving plan, reduce your fiduciary risk by helping you understand how to use your 401k as intended, and educate you on how to make the most out of your retirement investment. Advisors, after all, are there to help you in all aspects of your financial standing.
Do I Need a Financial Advisor Quiz
As promised, here is a brief quiz to help you determine if you might benefit from hiring a financial advisor through Delta Wealth Advisors:
ロ ロ Do I have at least $1 million in liquid financial assets?
ロ ロ Am I a HENRY (High Earner, Not Rich Yet)?
ロ ロ Do I want to increase my investments?
ロ ロ Am I making financial decisions based on emotions?
ロ ロ Am I close to retirement?
ロ ロ Do I need to plan for my children’s education?
ロ ロ Do I have a big event or purchase coming up?
ロ ロ Do I need a plan for my future care?
ロ ロ Do I need a plan for my estate or any inheritance I may pass on?
If you’ve answered yes to one or more of these questions, you may want to consider hiring a financial advisor.