What Financial Advisers Do

Most financial advisers want to look at your whole financial picture – all your income and liabilities. They want a complete picture of where you are financially so they can draw a map from where you are to where you want to go. Here are some of the benefits of using a financial adviser:

* The Big Picture – A financial adviser will develop a comprehensive profile of your financial status. This profile will identify areas of strengths and weakness.
* An Unemotional Assessment – The financial adviser will give you an unemotional assessment of what needs to be done. Money is an emotional topic for many people, which often leads to bad decisions.
* Allocate Resources – It is likely you have competing priorities, such as sending the kids to college while building a retirement fund. A financial adviser can help you allocate resources so both goals receive the appropriate share of dollars.
* Minimize Taxes – Most investment decisions carry some type of short or long-term tax implication. Your adviser can help you shape your investments in a manner that keeps taxes to a minimum and more of your dollars invested.
* Estate Planning – Careful planning will help ensure that your estate passes to loved ones in a manner that protects as much of its value as possible.

In broad terms, your adviser will cover these areas. More specifically, your adviser will focus on these areas:

* Retirement accounts such as 401(k)s, IRAs, and so on
* Insurance including medical, life, disability, liability
* Educational goals for how many children at what ages
* Taxes both personal and business if self employed or own a business
* Other financial goals such as second home, buy a business, retire early