By: Dan Miller, CFP®
The events of last year may have taken a toll on your 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 are getting back into the swing of things, a financial advisor could be just what you need - even if you might not realize it now. We’ve identified five ways that a financial advisor can be valuable to you during the transition to a post-COVID life.
Way #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.
A financial advisor can offer support and guidance as you get back on track towards your long-term financial goals. Each financial journey is unique to an individual and family, 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 and strategize how to reach them.
Way #2: They Can Help You Stay the Course
In March 2020, news of market crashes may have had you panicking over your portfolio.
Times of economic uncertainty can 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.
When you’re worried about what you’re seeing on the news, your advisor can leave emotion out and provide unbiased, educated advice that’s focused on your personal economy - not market trends.
Way #3: They Provide Personal, One-on-One Advising
Today’s technology has brought about numerous, obtainable solutions for investors including robo-advisors. This is a great option for young investors, who may want to start out investing a small amount at a time. For someone looking to maximize their portfolio’s potential while tailoring it to their long-term needs and coordinate income strategies for retirement, 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.
Way #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.
Way #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, 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.
If you’re looking for help as you get back on course towards your goals 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 to report any recent life events, career changes or fluctuations in income. All of these can affect your bigger financial picture and portfolio.