By Krista McBeath, McBeath Financial Group
Today’s financial climate is drastically different than it was 50 years ago. Now, most households are run on two incomes, people often take out second mortgages to put their kids through college, and future generations fear Social Security won’t exist when they’re ready to retire. So, how do you face these challenges? You may already be working with a financial professional such as an accountant or estate planner, but in order to get a comprehensive financial plan you should tap into the expertise of a financial advisor. This is NOT the same as visiting a broker or brokerage firm.
Many people have reservations or misconceptions about financial advisors and what they do. Even if you have a good grasp of what it takes to manage your finances, the fact is that the financial world grows more intricate every day, and a financial advisor can be there to help you navigate the unsteady waters to your financial goals.
Are All Financial Advisors the Same?
Overall, financial advisors are not covered by uniform state or federal regulations. So, there can be significant differences in their education and business practices. However, registered investment advisors (RIA), by law, are held to a fiduciary standard of care so you can be sure that they will work in your best interest. Under the Investment Advisers Act of 1940, RIA’s must make all investment recommendations in your best interest, and inform you should a conflict of interest arise.
What Can a Financial Advisor Do For Me?
A good advisor will, first and foremost, get to know you and your personal financial goals. They will then take a look at your current financial state, evaluate your insurance coverage, investment portfolio and assess your tax obligations. Then, they will create a plan that will help you meet your goals by addressing any financial weaknesses and highlighting the strengths. The greatest service a financial advisor can provide is the monitoring and periodical evaluation of your plan and its progress. Your advisor should be there every step of the way to help you make any adjustments to enhance your current plan and help you reach your goals.
When Should I Seek the Help of a Financial Advisor?
While you don’t have to wait for a major life event to start planning your financial future, the following may be good times to reach out to someone who can help you make an objective decision, instead of an emotional one:
- Planning for your retirement
- Developing a supplemental income plan for retirement
- Developing an estate plan
- Coping with the death of a loved one
- Receiving an inheritance or a financial windfall
- Having a child
- Paying for college
- Buying or selling a family business
People work with financial advisors for many reasons. What is most important is that you have confidence in your advisor’s ability and strategy; that they really understand you, your family situation, and your personal financial goals; and, that you have the utmost trust in this person. When you find such a person, your financial future will be in good hands and will not cause you any added stress.
Krista McBeath is the founder and president of McBeath Financial Group in Normal, which is a registered investment advisor firm. The firm covers all areas of financial management, specializing in retirement and financial planning solutions. For more information, you may call 309-808-2224, email krista@mcbeathfinancial.com, or visit their website McBeathFinancialGroup.com.
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