4 Things Your Financial Advisor Should Be Telling You

Article about 4 Things Your Financial Advisor Should Be Telling You

Published by

Aug 3, 2021

You dont need a financial advisor Glenview expert to tell you what will happen in the short term. That information is out there in the market and can be found at your bank, online, and elsewhere. At the same time, you need to know how to secure your financial dreams using sophisticated tools that consider market fluctuations, required contributions, and other factors. This is not as easy as it sounds.

So, are you suffering from financial planning fatigue? These are four things you need a financial advisor to tell you:

1. Financial Planning is not Guaranteed

Financial planning Glenview services help guide you through the hard times and even boost your confidence when things go well. However, these decisions come at a personal cost.

For example, a planner can tell how much money is being deposited into retirement accounts each month or how much interest each investment will earn. Thats all beneficial information. But, are you ready to envision a future where your goals are not met? As such, your advisor paints an accurate picture of what failure could mean for your future.

2. Timing is Everything, but so is Research

Good financial advisors will tell you timing is everything, but theres more to this than just knowing when and what is happening in the market. Its also about knowing when you should make a change and when you shouldnt. Sometimes that means sticking with a plan even when the market doesnt look good.

Its all about playing the odds, and if your financial planning Glenview advisor is skilled, theyll be able to tell you what the odds mean for your current situation. A good financial advisor will tell you but keep an open mind while also encouraging you do your research.

3. What You Own Could be Greater Than What You Owe

The biggest asset for most people in terms of their finances is their house. They want to know if they can afford the home theyre trying to buy or if they can afford to stay where they are. They dont think about the fact that their retirement plan, investments, and other assets could be worth much more than what they owe on their mortgage.

Your financial advisor should help you figure out what your debt means to your overall financial health and how to plan for the future.

4. Plan Based on What You Need

Your financial advisor Glenview expert should be helping you decide how best to reach your financial goal. They will explain different types of investment vehicles and options, but they should also explain the risks associated with each one. Most importantly, your advisor will make sure you have a plan that works for you, whatever your unique situation and goals are.

Additionally, advisors should be discussing your risk capacity, as well as your risk tolerance. Risk capacity is the maximum amount of risk that you can take without jeopardizing essential things in your life, such as family, career, and lifestyle. On the other hand, risk tolerance refers to your emotional and psychological makeup when dealing with financial loss.

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Articles authored by Diane Schrantz