Financial planning has changed dramatically over the last 30 years. Financial planners, money managers, and brokers where once only reserved for the wealthy. Today this is no longer true. Services are now available to virtually all economic levels of clients. So, who should hire a financial advisor?
First things first: there are several types of advisors out there, and in my opinion (which is shared by an ever growing number of people) the advisor to seek out should be a comprehensive, fee-only advisor. It would take me several pages to fully explain my reasoning, but I feel I can break it down into two main reasons:
1. to be successful, I feel financial planning should be attacked from a big-picture perspective because every piece of the financial puzzle needs to work hand-in-glove.
2. Working with a fee-only advisor gives the client the best opportunity to receive unbiased advice…..advice that can be delivered to the client with the clients best interest in mind and not the back pocket (commissions) of the advisor dispensing the advice.
Who needs an advisor?The short answer to this question is very simple: virtually everyone could benefit from the right advisor. Not everyone will benefit from every advisor, but I feel strongly that everyone could benefit from the right advisor, regardless of their economic status.
My wife and I employ our own fee-only advisor. We do this not because I’m not good at what I do, but because I relish an objective opinion. Plus, my wife sometimes enjoys a perspective other than mine.