Financial advisors come in all shapes and sizes. Some work with broker-dealers (such as Charles Schwab or Fidelity); others work with independent Registered Investment Advisors (such as FSA). When calculating the value in your financial advisor, it is important to factor in if they are giving advice across all subject matters of the financial planning process.
Traditionally, financial advisors’ sole domain was investments. But now, in a day and age of robo-advisors, the intrinsic value is their ability to discuss multiple topics. Aside from investments, your financial advisor should review your estate plan, tax situation, and the appropriateness of your insurance coverage. Advisors can give insight on education funding, as well as address your assets and emotional needs in retirement. Planners can give guidance on financial decisions and make sure you measure twice and cut once.
Financial planners have sophisticated software to help project the uncertainties of the future and stress test your plan. Ever heard of a Monte Carlo analysis? This process will illustrate how your retirement plan holds up in 1,000 different stock market scenarios.
As CFP®️ professionals, we have passed a comprehensive exam on the following planning topics: general, education, insurance, investments, tax, retirement, and estate planning. In addition to the exam, we must earn continuing education credits to keep our knowledge base up to date. We are happy to schedule a meeting to review all parts of your financial plan and make your retirement needs realized.