When something is important to you – anything from your plumbing to a medical procedure – you want to make sure it’s done correctly. In most cases, you hire a specialist. But when it comes to finances, most Americans are hesitant to get help from a professional. In fact, 75 percent of Americans manage their own finances without help from a financial advisor or online service.1

What does a financial advisor do? A financial advisor can help you with most aspects of your finances. They have licenses and an additional layer of understanding of finances to help you make the most of your money. Financial advisors act in your best interest, as all financial professionals do, to understand your needs, goals, and risk tolerance.

Instead of going it alone, consider the benefits of working with a financial advisor. Here are a few reasons why finding a financial advisor makes good sense.

Finances don’t have to be stressful

According to research, most financially and emotionally confident people use a financial advisor.When you add that to research showing that 79 percent of working Americans have serious stress about their lives, with finances being a significant part of their anxiety, it’s clear there’s a large disconnect between people’s beliefs and their actions.When you work with a financial advisor, one of the main goals should be to lighten the stress associated with your personal finances and to help take the emotion out of investing.

Doing it yourself might not be the best option

Most people rely on their jobs to provide a financial foundation, including not only their salaries but also benefits like health insurance, disability insurance, life insurance, and a 401(k). But relying on your job alone may not be the best strategy to grow your money. Studies have shown that people who are working with a financial advisor to invest and grow their money have on average a 5% increase in results.4 

Other people may rely on your finances

If you have a family, you know that there are other people who depend on your income. And that can be stressful. The average cost of raising a child is $233,610.Then there’s college (if this is the path you choose). One year of college tuition currently costs anywhere from $9,970 to $34,740, depending on what type of institution you attend, and that price is forecasted to continue rising.6 On top of your everyday costs, you want to make sure your family is protected with protection like life insurance and disability income insurance. These products can be complicated, and a financial advisor will work with you to make sure you have the right coverage for your individual situation.

Planning for retirement is important

One estimate puts the annual cost of living when you’re retired at nearly $50,000.So if you live for 30 years in retirement, and compound the yearly amount by 3% to account for cost of living, you need to save up well over a million dollars to retire comfortably. Make sure you don’t get caught by surprise in your retirement years by planning accordingly now. A financial advisor can help you with guidance on investment and retirement products, such as annuities, that can provide guaranteed lifetime income for your fixed retirement expenses and help you plan for a retirement you can enjoy. It’s important to build a holistic strategy with a professional, and review things like risk tolerance, which may change as you get closer to retirement. An advisor can also share a variety of tools that you can tap into to help you save for retirement.

A financial advisor can help you plan for the future, understand how to protect yourself, and ease the stress and time it takes to manage your personal finances. The relief that comes with financial confidence is powerfully rewarding, which makes it far easier to continue making optimal financial choices once you’ve taken that important first step.

Disclaimer

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J.P. Morgan Asset Management; Dalbar Inc. Indexes used are as follows: REITS: NAREIT Equity REIT Index, EAFE: MSCI EAFE, Oil: WTI Index, Bonds: Barclays U.S. Aggregate Index, Homes: median sale price of existing single-family homes, Gold: USD/troy oz, In­ation: CPI. 60/40: A balanced portfolio with 60% invested in S&P 500 Index and 40% invested in high quality U.S. ‑xed income, represented by the Barclays U.S. Aggregate Index. The portfolio is rebalanced annually. Average asset allocation investor return is based on an analysis by Dalbar Inc., which utilizes the net of aggregate mutual fund sales, redemptions and exchanges each month as a measure of investor behavior. Returns are annualized (and total return where applicable) and represent the 20-year period ending 12/31/15 to match Dalbar’s most recent analysis. Guide to the Markets – U.S. Data are as of December 31, 2016.

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Kathryn Vasel, “It costs $233,610 to raise a child,” Jan. 9, 2017

6

Student Debt Relief. The Average Cost of College in 2018, October 21, 2019

Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRASIPC. PAS is a wholly owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY.

Not all Guardian Financial Representatives are licensed as Financial Advisors.

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