There are many things in life that you can do for yourself, but sometimes you need assistance from a qualified expert. This principle is especially well illustrated in the field of health care and medicine. For example, taking care of one’s body through proper diet and exercise is something that many people do without expert guidance. On the other hand, deciphering chest pain and dizziness should not be anyone’s next do-it-yourself project. In that situation, a qualified medical professional is necessary to rule out an emergency and develop a treatment plan.
When it comes to your financial health, an adviser can fill the role of expert and offer guidance and experience that may not be otherwise available. A trusted adviser will get to know you so that he or she can offer personalized advice based on your goals and limitations. In a nutshell, a good adviser will help you develop, execute, and benefit from a good wealth accumulation plan.
Develop a Plan
Developing a wealth accumulation plan is one of the most important financial decisions a person can make, and an adviser plays an invaluable roll in this process. Am I saving enough money and are my investments earning a sufficient rate of return to reach my retirement goals? How should I allocate my income between debt repayment and making investments? Will my pension and Social Security be enough? At what age can I afford to retire? Everyone is likely encounter these questions and others like them at some point in their lives. Just like a good doctor will review a patient’s medical history, a good adviser will take a holistic look at a client’s financial situation to help him or her chart a path forward. Benjamin Franklin is often quoted as saying “By failing to prepare, you are preparing to fail.” If you don’t develop a plan for reaching your financial goals, it will be impossible to know whether you have reached them.
Stick to the Plan, Even in Times of Turbulence
A well-developed plan is the strongest defense against the anxiety and turbulence produced by market volatility. Large swings in the markets often cause big investment mistakes. For example, many investors that adopt a DIY approach pull their money out of markets long after it has started a large decline and don’t reinvest until after it has made a substantial recovery. This market mistiming represents a missed opportunity. Everyone has a tendency to react emotionally when they witness large declines in the investments made with their hard-earned money. However, having an independent, objective adviser can help a person stick to the plan (where appropriate) and prevent emotional mistakes.
Maximize the Rewards of Your Plan
When a person finishes accumulating wealth at retirement, he or she will still need assistance in distributing the wealth to maximize its impact. Persons that reach retirement often have many different investments and brokerage accounts. Which accounts should I draw from first? Can I continue my charitable giving without increasing the risk of running out of funds? Do I have enough money to pay for my children or grandchildren’s college education or home down payment? These are questions an adviser can help you answer so that the money you’ve (literally) spent your entire adult life accumulating is put to optimal use.
Do You Have a Trusted Source of Advice?
Like a game of chess, a financial plan requires thoughtful trade-offs and planning moves well in advance. Black Cypress advises its clients on investments and guides them in preparing a wealth accumulation and distribution plan. For its Select clients, Black Cypress goes even further, taking a holistic approach to a client’s financial well-being and offering guidance on charitable giving and estate and legacy planning. If you would like more information about Black Cypress, our investment results, or our Select program, please contact us at firstname.lastname@example.org or 843-259-2009.