The events of last year seem to have done one of two things with most people we come across. One, they have taken a toll on their finances, or two, it was a very prosperous year for their financial situation. For those who had a financial advisor during that time, they were guided through all the ups and downs of the market and their personal financial lives. If you've taken time to re-assess your own financial life, a financial advisor could be a valuable partner to work with in your journey. We’ve identified five ways that a financial advisor can be valuable to you during the transition to a post-COVID life.
Reason #1: They Can Re-Focus Your Financial Life
It’s possible the pandemic affected your financial life in some way - whether it caused a delay in meeting your savings goals, altered your income stream or drained your emergency fund. Millions of people were impacted by the unexpected events of 2020, and you are not alone on the road to getting things back on track.
On the other hand, you may be a business owner in an area of the economy that experienced a sharp increase in demand or you may work for a company that benefited financial during the pandemic and you're seeing it reflected in shares of the company you own, a bigger salary, or an unexpected bonus. A financial advisor can help you determine how to optimize your situations.
No matter the circumstances, a financial advisor can offer support and guidance to get you on track toward your long-term financial goals. Each financial journey is unique, and an advisor can provide you with personalized advice as you make changes to your goals and adjust your plan accordingly.
Not sure where to start with your post-pandemic financial situation? An advisor can help you identify your needs and create both short- and long-term goals.
Reason #2: They Can Help You Stay the Course
In March 2020, news of market crashes may have lead you to panic over your portfolio.
Last year was certainly a trying time for investors and times of economic uncertainty can often lead to panic selling, causing further market volatility. But for those who stay the course during times of turmoil, there can be two potential benefits - they make educated decisions based on their personal needs and they maintain a long-term focus.
If you did make an emotional decision and panicked last year, as many did, working with an advisor may be beneficial to chart out the best course moving forward and how to get your money back to work again.
When you’re worried about what you’re seeing on the news, your advisor can provide unbiased, educated advice that’s focused on your personal economy - not market trends. Besides, your advisor is the big thing standing between you and the Big Mistake.
Credit: Behavior | Gap, Carl Richards
Reason #3: They Provide Personal, One-on-One Advising
Today’s technology has brought about numerous, obtainable solutions for investors including robo-advisors, apps, and other easy-to-use resources. This is a great option for young investors, who may want to start out investing a small amount at a time and have little to lose. For someone looking to maximize their portfolio’s potential while tailoring it to their long-term needs, a robo-advisor’s cookie-cutter experience likely won’t cut it.
Working one-on-one with a financial advisor provides you with the opportunity to develop a customized financial plan and investment strategy, with service that is ongoing and personalized to flex with your needs. As we continue moving towards a post-pandemic life, a financial advisor can focus on your personal economy and growing concerns, while keeping your long-term financial health in mind and serving in your best interest.
Reason #4: They Can Provide Tax-Conscious Investment Options
When unaccounted for, your potential tax obligations can eat away at your returns. Your financial advisor may be able to help make investment decisions that keep potential tax obligations in mind. This can be especially important if COVID-19 affected your tax status for 2020, as your financial situation may have changed over the past year. They can also work with you in uncertain times and down markets when tax loss harvesting can enhance your long-term financial picture.
Reason #5: They Can Navigate Big Life Changes
Are you coming out of the pandemic with a significant life change, like a new baby, changed career path, retirement, divorce or a new piece of property? A financial advisor can be a source of guidance and expertise when navigating important events. While many life milestones are new and exciting, they can also be expensive, time-consuming and influential over your financial situation. Knowing that you’re in the right hands gives you more time to enjoy life’s changes, rather than stress about the unknown. Having someone to partner with, be a sounding board, and give you the information you need to make a decision may give you the peace of mind you need after an all-too-stressful year.
If you’re looking for help as you get back on course post-COVID, consider a financial advisor to help you see the full picture. And if you’re already working with a financial professional, check in with them to report any recent life events, career changes or fluctuations in income. All of these can affect your bigger financial picture and portfolio.
Investment Advisory Services offered through EnRich Financial Partners LLC, a Registered Investment Advisor.
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