Whatever stage you are in as an investor, be it just starting out, preparing to retire, or well into your retirement years, the decision to work with a financial advisor is a very personal and important one. Not only are you looking for that right person who will understand your unique financial circumstances, it is also very important to find an advisor and a firm who are focused on you as an individual and who will act in your best interest.
Understanding the intricacies of your life, your family dynamics, your professional history, what motivates you, these are all things that are important aspects of what make up your financial life. And when taken into account, these things help develop your personal investment philosophy. Working with a financial advisor can help define that philosophy and help develop an investment plan built around it that will suit your lifestyle and legacy goals. And as life changes, a good advisor will review your investment plan regularly and continue to develop and adjust it with you.
A financial advisor can provide a holistic approach that includes many aspects of your life and your future. They are able to see the big picture and help you stay focused through every market cycle. Investing can be complicated and challenging and often times highly emotional; A good advisor will be there to remind you of your goals and help you to stay the course. I believe building a lasting relationship may include:
- Acting as a neutral third party
- Including your family as much as you are comfortable
- Legacy Planning
- Philanthropy Planning
- Continuing Care Planning
- Tax & Estate Planning
- Coordinating with your accountant, attorney, and insurance agent
Many people believe that the best way to receive financial advice is through a fee-only fiduciary, someone who is legally obligated to put their clients’ interests first. A fee-only advisor does not accept fees or commissions based on the sale of investment products. This “fee for service” model was designed to reduce inherent conflicts of interest in selling investments for commission. Fee-only advisors believe that this structure is more transparent and aligns their clients’ interests with their own. Caveat emptor: Large commissioned based Wall Street firms have muddied the waters here by hatching the moniker “fee-based” advisor. This simply means that advisors using this model can charge a fee AND charge commissions as well.
Working with and building a relationship with a financial advisor should be a rewarding partnership built on trust, transparency, and where both of you are seated at the same side of the table. Part of your plan development involves knowing what makes you tick. How can any advisor act in your best interest without truly knowing you? Not only is it important for your investment philosophy to be determined but selecting a firm with a clear philosophy of their own that puts you at the center shows they are in business for the right reason—You!
Jack Davis is the founder and CEO of Navigation Retirement Group, an independent wealth management firm serving high achieving retirees and pre-retirees with investable assets between one and ten million dollars. For nearly three decades, he has been using his asset management and financial planning skills to develop and implement planning strategies that help pursue his clients’ unique goals. Passionate about education, he holds a Masters in Personal Finance and the CERTIFIED FINANCIAL PLANNER™ credential. He is also the author of Cash Out! Retire on Your Terms, Live Well and Die Happy, a book that gives pre-retirees and retirees planning tools and insights that can help them flourish throughout retirement. Based in Oro Valley, he and his team serve clients throughout the greater Tucson area and around the country. Learn more by connecting with Jack on LinkedIn.
Securities and advisory services offered through Navigation Retirement Group, a Registered Investment Advisor.
Navigation Retirement Group is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.
Investing involves risk and investors should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing piece to make decisions. The information contained herein is intended for information only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances. There are no investment strategies, including diversification, that guarantee a profit or protect against loss. Past performance doesn’t guarantee future results. Equity investing involves market risk, including possible loss of principal. All data quoted in this piece is for informational purposes only, and author does not warrant the accuracy, completeness, timeliness, or any other characteristic of the data. All data are driven from publicly available information and has not been independently verified by the author.