Over 70% of Americans cite money as a significant cause of stress in their life. It’s no secret that financial decisions can be some of the most stressful decisions to make, but you don’t have to make them alone. Read on to see what a financial advisor can help you accomplish and the potential value they can add to your finances.

• Potential Portfolio Growth

A big reason many seek the guidance of an advisor is to help them grow their portfolio, and for good reason! According to SmartAsset, working with a financial advisor could add anywhere from 36% to 212% more value to an investor’s portfolio over their lifetime. While the exact amount depends on unique factors, advisors are trained and educated to help you reach your goals.

• Behavioral Finance Guidance

Whenever you’re making a big decision in life, it’s always good to bounce your ideas off someone else, especially if they’re a professional in that field. Making an emotional or uninformed decision on your finances can cost you big time, working with an advisor can help you avoid common, emotionally driven mistakes. Advisors help you manage risk tolerance, avoid biases, and make more rational, informed financial decisions that support your long-term goals.

• Technical Financial Knowledge  

It’s okay to not know everything about every topic. If you had a mysterious health issue, you wouldn’t try to solve it yourself, you’d go to the doctor. You should try to have the same attitude when approaching your finances. Advisors assist with navigating tax laws, market dynamics, new financial products, and investment strategies that can confuse folks who are not in the industry.

• Tax Minimization Strategies

The goal is not just about making gains when working with a financial advisor. Beyond investment gains, an advisor works to help you reduce and avoid unnecessary tax burdens, aiming to increase overall wealth retention.

• Long-Term Financial Planning

When you get an advisor, you’re forming a long-term, ideally life-long, relationship. Ongoing professional guidance can help you adjust to changing market conditions, life events, and economic trends. Your advisor will be someone who will see you through different phases of life, guiding you through all the ups and downs.

• Managing Fees vs. Returns

While financial advisors charge fees (typically 0.75% to 1% annually), according to SmartAsset, their services can result in annual wealth growth of 2.39% to 2.78% beyond what an average investor might achieve alone.

• Fiduciary Obligation

While it can be stressful letting someone make money moves on your behalf, knowing you’re working with someone who is obligated to act in your best interest can make it easier to trust their guidance. Advisors in particular are legally required to act in their clients' best interest when providing investment advisory services. This helps ensure their recommendations align with your financial goals.

If you want to learn more about what a financial advisor can add to your specific situation, Envisage Wealth Advisors is here to support your unique wealth journey! Give us a call today at (859) 277-6528.

Sources:

https://insights.smartasset.com/financial-advisor-value?utm_campaign=mbr__falc_content_favalue&utm_content=fa_value_worthit_jasper_primary&utm_medium=&utm_source=morningbrew&utm_term=morningbrew_nl_020725

https://pas.duke.edu/concerns/emotional/stress/money-related-stress/#:~:text=According%20to%20a%20recent%20CNN,of%20simple%20dollars%20and%20numbers.

All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful.

Although there is no assurance that working with a financial professional will improve investment results, a professional can evaluate your objectives and available resources and help you consider appropriate long-term financial strategies.

Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way Cincinnati, Ohio 45242 (513) 794-6794. Investment Advisory services offered through O.N. Investment Management Company.

This content, provided by a third-party resource, is believed to be accurate information. This information does not constitute legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information to their situations. The third-party resource is not affiliated with the named broker-dealer, state, or SEC-registered investment advisor firm. The material provided is for educational purposes only. Consulting with your financial advisor and tax professional is recommended to understand the specific implications of your situation.