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A Financial Professional Can Be An Asset

A Financial Professional Can Be An Asset

February 29, 2024

A Financial Professional Can Be an Asset


It’s tempting to manage your own finances, but should you? Financial professionals pack a rich toolkit that can help manage your wealth.

Affluent investors have substantial portfolios that deserve full-time management. A financial professional can help you allocate your assets to balance returns with risk, but they also add value by providing guidance that can help you avoid costly mistakes.

Refining an investment strategy. A logical investment strategy aims to reduce risk while providing an investor’s required return. Spreading your investments around through diversification is important to managing volatility. A diversified portfolio can help support stability during down markets potentially benefitting from long term growth trends. Risk/reward tradeoffs evolve as retirement age approaches, requiring a slow but steady reallocation of assets across different asset classes.

Taming investor emotions. Bear markets can be terrifying, but terror is an emotion that often causes investors to sell assets at the worst possible time. Conversely, a surging market triggers greed that can result in the acquisition of overvalued assets. Financial professionals are objective observers of market conditions and can help you withstand the emotional turmoil accompanying short-term volatility. Rather than trying to time markets, a financial professional can concentrate on the logical allocation of assets that optimize long-term results.

Exploring options to minimize taxes. Few would deny making maximal contributions to advantaged retirement accounts, including 401ks and Individual Retirement Accounts (IRAs). But affluent investors are dealing with substantial wealth that requires a more expansive approach to tax minimization. A financial professional can guide you through various tax-advantaged investment vehicles, such as municipal bonds. Tax considerations can figure into the use of trusts, foundations, and home offices to reduce income, property, and estate taxes without sacrificing flexibility and liquidity. Consult with your legal professional as well when considering these options.

Promoting the big picture. Perhaps the most fundamental advantage offered by financial professionals is their holistic approach to your wealth, which is much more than stock picking. A professional can help you create an integrated set of plans to cover all aspects of your wealth. Once your plans are established, your fiduciary advisor can take care of their day-to-day management in a dispassionate way that allows you to devote your attention to other parts of your lifestyle.

Financial professionals can be cost-effective. Enlisting the help of a financial professional can have a profound impact on your wealth. For many wealthy investors, the potential benefits of professional management may outweigh the costs. If you would like to discuss ways to conserve and grow your wealth, contact me for a consultation. Together, we can map out a course of action that addresses your long-term goals.


Call today for more information or to schedule a consultation.

Municipal bonds interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply. If sold prior to maturity, capital gains tax could apply.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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