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 likely 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. I’ve identified five of the many ways a financial advisor can be valuable to you during the transition to a post-COVID life.
Way #1: Re-Focusing Your Financial Life
It’s possible the pandemic affected your financial life negatively 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 recovery.
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, and an advisor can provide you with personalized advice as you make changes to your goals, adjusting 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.
Way #2: Helping 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 provide unbiased, educated advice that’s focused on your personal situation - not market trends.
Way #3: Providing Personal, One-on-One Advice
Today’s technology has brought about numerous, obtainable solutions for investors including robo-advisors. This may be a good option for young investors who 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, 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, personalized and flexible to meet your needs. As we continue moving towards a post-pandemic life, a financial advisor can focus on your personal situation and growing concerns, while keeping your long-term financial health in mind.
Way #4: Providing 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 when selecting not just investments, but account types as well. This can be especially important if COVID-19 changed your tax status for 2020, whether temporarily or permanently.
Way #5: Navigating Big Life Changes
Are you coming out of the pandemic with a significant life change? Perhaps 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 impactful towards your financial situation. Knowing that you’re in good 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 post-COVID, consider a financial advisor like me 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 as all of these can affect your bigger financial picture.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.