In 2024, more people than ever are wondering if they even need to use a financial advisor.
With vast amounts of information available at our fingertips and easy-to-access platforms making it simpler to invest, it seems like anyone can do it themselves. However, Chase Gordon, Wealth Advisor at Verus Financial, challenges this idea.
Despite the rise of low-cost alternatives and robo-advisor platforms, Chase firmly believes that there is still significant value in working with a human advisor that has real experience and expertise.
Here’s why a financial advisor could be right for you.
You Value your Time
Your time is valuable, we get that.
Many people who use robo-advisors or manage their investments independently often feel overwhelmed and confused due to a lack of expertise and the time needed to make informed decisions.
By working with a financial advisor, you can free yourself from these concerns. Let your advisor handle the research, planning, and strategy, so you can focus on enjoying your life, pursuing your passions, and spending time with those you care about.
You’re looking for Personalized Guidance for your Specific Financial Situation
Everyone’s financial situation is unique, and a one-size-fits-all approach rarely works. Robo-advisor platforms often rely on generalizations, placing you into broad categories based on common traits. This generalization can limit your investment potential and fail to address your actually needs.
By partnering with a financial advisor, you gain access to truly personalized wealth management solutions that evolve and grow alongside you.
In addition, financial advisors offer invaluable support when facing significant financial decisions, such as purchasing a home, funding your children’s education, starting a business or planning for retirement.
This personalized service and attention can make a significant difference in achieving your goals.
You want Expertise That Delivers Results
Financial terms and jargon can often be overdone or complex. Without the necessary expertise, it’s easy to make mistakes that could have long-term consequences.
A financial advisor brings invaluable expertise to the table, adeptly managing a diverse array of investment products, tax implications, and regulatory changes. Their deep understanding of financial instruments, market dynamics, and the intricate relationships between various financial factors is crucial in crafting strategies that drive meaningful results.
You Need Help Balancing your Emotions and Investments
Effectively managing your emotions is a key factor in successful investing. While many believe they have full control over their feelings, it’s often the case that emotions can strongly impact financial decisions.
Investor sentiment frequently drives the flow of capital, but it can lead to counterproductive behaviours. For instance, during market highs, some investors driven by fear of missing out (FOMO) may “buy the highs”. Conversely, as market volatility increases, these same investors might “panic sell” out of fear. This emotional approach to investing can have significant negative effects on your portfolio.
A financial advisor can help manage these emotional responses, ensuring your investment strategy remains focused on your long-term goals.
You value Active Portfolio Management
In recent years, low-cost passive ETFs have gained popularity, partly because many active strategies have struggled to match their performance over the past decade. While there is some truth to this, a handful of active strategies consistently outperform passive investment vehicles.
A skilled advisor and portfolio management team can identify and utilize these successful active strategies, offering advantages in risk management, diversification, and market navigation.
Research shows that investors working with advisors achieve higher annual returns and greater long-term savings compared to those who do not.1
Comprehensive Planning and Ongoing review
A financial advisor doesn’t just focus on your investments. They provide comprehensive financial planning that includes tax strategies, retirement/goal planning, estate and insurance solutions. This ensures that all aspects of your financial life are working together to support your goals.
Your financial situation and goals will change over time, and so should your financial plan. Financial advisors offer ongoing reviews and adjustments to your strategy, ensuring that it remains aligned with your objectives and adapts to any changes in your life.
You’re seeking Peace of Mind
Ultimately, working with a financial advisor provides peace of mind. Knowing that a knowledgeable professional is managing your finances and planning for your future allows you to focus on other important aspects of your life. It alleviates the stress of making financial decisions and helps you stay confident that you are on the right path.
The experts at Verus Financial know first hand how their experience and expertise are invaluable assets in achieving your financial goals. They provide tailored planning, strategic investment management, and objective advice that can make a significant difference in your financial journey. If you’re looking for a partner to guide you through the complexities of finance and help you build a secure future, consider leveraging the experience and expertise of a financial advisor at Verus Financial.
- Advisor’s Edge, “Advisors add 2.88% in value, study finds,” May 7, 2020, https://www.advisor.ca/my-practice/conversations/advisors-add-2-88-in-value-study-finds. ↩︎