Do most investors actually need a financial planner? YES! Many individuals with more than a few hundred thousand dollars, those nearing retirement, or needing specific investment solutions such as life insurance should consult with a professional financial adviser.
What are the reasons to use a financial advisor and are they justified? First, investors who work with a financial advisor are likely to have better investment returns than those who don’t. A February, 2009 survey by Fidelity Investments of 1,000 households with at least $1 million in investable assets shows a big difference. The households who used a financial advisor reported a 4% drop in assets during 2008, while those who didn’t use an advisor (do-it-yourself investors), reported an 18% drop in assets during the same year. That difference means tens or hundreds of thousands of dollars, more than justifying the fees for financial advice.
Another reason for working with a financial planner is even more basic. You can’t reach your financial goals unless you know how to get there. Let’s take retirement planning for example. How many people on their own can model exactly how much they need to save each month for retirement with the following variables: years working, life expectancy, investment return, inflation rate, taxes, Social Security benefits, healthcare costs, long-term care costs and many other variables? However, a financial planner can help model your projected savings needs based on your target retirement date and other goals.
A financial advisor also brings a professional process to your financial goals so that you are investing according to a plan and not according to your emotions. Look at the biggest, smartest money in the world- Bill Gates, IBM’s pension plan, Warren Buffet. Do they forgo a formal financial plan and invest on a whim? No, they hire the best financial advisors they can. You should to.
About ClaroConnect (http://www.claroconnect.com): ClaroConnect makes it easy to find the right financial advisor for your specific needs. You can screen through criteria like location, qualifications and fees and then review the detailed profiles of the advisors who match your criteria. You can read who their target clients are to see if they focus on your needs like retirement planning or help for small business owners. Then you decide which advisors to contact to interview in person or over the phone. For financial advisors, ClaroConnect provides cost effective internet marketing and lead generation.
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ClaroConnect provides a free, unbiased directory of financial advisors, certified financial planners and registered investment advisors, allowing investors to find the right advisor. For advisors, ClaroConnect provides cost effective internet marketing.