Financial Advisors: What Do They Do and Why Hire One (Part 1), #201

Retire With Ryan

I’ve spent the last 18 months writing the first book, “Fiduciary: How to Find, Hire, and Establish a Trusted Partnership with a Fee-Only Advisor,” which will officially be published on May 28th. I wrote this book to help everyone find a financial advisor who will put their interests first. Why? I see too many bad financial advisors harming their clients.

With that in mind, I’m going to kick off a series of episodes on financial advisors that will run over the next five weeks. I’ll cover the different types of financial advisors and what they do. I’ll share why the fiduciary model is best. I’ll even cover how to find your ideal advisor, what to expect once you hire one, and how to ensure that your partnership is delivering value.

You will want to hear this episode if you are interested in...

• [0:40] Preorder a copy of my book!
• [3:02] What is a financial advisor?
• [4:34] What the term “fiduciary” means
• [8:06] What can financial advisors do?
• [10:59] Reasons to hire a financial advisor
• [12:35] Do you need a financial advisor?
• [18:13] What I’ll cover in the next episode

What is a financial advisor?

According to Wikipedia, “A financial advisor is a professional who provides financial services to clients based on their financial situation.” Forbes says that a financial advisor is a professional “Who is paid to offer financial advice to clients.”

Financial advisors can use many titles, such as financial planner, financial consultant, wealth manager, wealth advisor, investment manager—and so on. I’m guilty of this as I most often use the moniker, “Wealth advisor,” because I help clients with both investment management and financial planning.

Not all financial advisors are fiduciaries. “Fiduciary” is an important term that most people aren’t familiar with. A fiduciary doesn’t receive commissions. Instead, they’re only compensated by the fees their clients pay them to better represent their interests.

In essence, a fiduciary is a trusted advisor who acts in their client’s best interest. You’re legally obligated to put your client’s interests ahead of your own (and disclose any conflicts of interest you may have).

There isn’t a clear path or training to become a financial advisor. There are no higher education requirements. There’s no experience required. There’s no standardization of titles. My goal with this series is to educate you so that you can get what’s best for you—and your money.

What can financial advisors do?

Financial advisors can help with many different aspects of finances, which is also why they go by numerous titles:

• They give investment management advice or manage portfolios.
• They can help you with retirement planning, estate planning, and legacy planning.
• They can help you with tax planning by looking at projected income and helping you decide how you can minimize your tax burden.
• A financial planner can help you with insurance planning and deciding if you'll need disability insurance or long-term care in the future.
• They can help you decide how to save for your kid’s college expenses.
• They can guide you with overall budgeting and cashflow planning.
• They can help you with determining a plan for paying off debt.
• They can help you buy/sell a business and set up business retirement plans.
• If you need a financial coach, they can meet with you regularly to see how you’re progressing toward your goals.

These are just a few of the ways a financial planner can assist you. Financial advisors can help you navigate any major life decision. They keep their finger on the pulse of the financial industry. They have experience managing numerous life scenarios to help you avoid mistakes and take advantage of opportunities. A good financial advisor is an indispensable ally in the growth and preservation of your assets.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Preorder my new book on Amazon

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

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