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How do you even know if you need a financial adviser? With so many titles, financial adviser, planner, wealth manager, broker. It’s confusing even for the most educated. And don’t even get me started on robo advisors and insurance brokers. Where do you begin? Let me help you cut through the noise. Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies. Here to guide you to a successful, stress-free retirement while spending more and avoiding being killed in taxes. Today, I’m going to help you figure out if hiring a financial adviser or planner or wealth management or whatever they’re calling themselves is the right move for you. Let’s break it down into three broad categories of financial advice. Robo advisers and stock brokers. These are services or individuals who take some basic info from you and invest on your behalf or help you invest on your own. They’re usually on the lower end of the cost spectrum, but don’t expect much in terms of personalized advice or high value beyond investing on your path. Insurance brokers. These folks might call themselves financial planners, but all they do is sell insurance products like annuities. Now, I’m not here to bash insurance. They can be useful tools in certain situations. For example, a SPIA can bridge income gaps in retirement or specific insurance products can be part of a larger legacy or tax strategy.
But selling you a product and walking away is not financial planning. Comprehensive financial planners. These are the people who combine your life values and goals with technical financial strategies. They review your tax returns yearly to implement long-term tax strategies, craft retirement income plans to handle bare markets and rising costs of living, develop estate and legacy plans, and yes, manage your investments as part of the bigger picture. If you’re looking for someone to address every aspect of your financial life, this is the category you should consider. So, how do you know if you need a financial adviser? Ask yourself these questions. Are you someone who could benefit from tax strategies? Are you unsure how much of your savings you can withdraw without running out of money? Do you feel overwhelmed by the idea of managing your investments, retirement income, taxes, and legacy planning all on your own? If you answered yes to any of these, you’re likely someone who could benefit from a comprehensive financial planner. When considering a financial adviser, ask these important questions to protect yourself and find the right fit. What is their regulatory status? Are they a fiduciary, meaning they act in your best interest? What’s their fee structure? And then dig deeper. Ask them to explain all of their fees in plain English. What’s their planning process?
What technical documents like tax returns or estate plans do they use to craft your financial plan? What access will you have to your money and are there any lockup periods? What areas of your financial life will they address and how do they help you across all of them? Here’s some red flags to watch out for. As a general rule, if you ever feel rushed or pressured to make a financial decision, whether it’s to sign on the dotted line or buy a product, that’s a huge red flag. Take a step back. A good adviser will educate you, explain the recommendations in plain English, and give you the time you need to make informed decisions. At the end of the day, if the value of the service exceeds the fee, hiring an adviser makes sense. For example, if an adviser who charges 1% of a portfolio can add 1% more to your bottom line than you could on your own, save you 1% in costly mistakes, save you 1% in time, or reduce 1% in stress that comes with managing it all, then hiring that adviser becomes a no-brainer. If you’re ready to explore working with a financial adviser or just want a list of the questions to ask a financial adviser, email us at contact@bocaretirement.com and say question list, please. Bye.
