Working with a Financial Advisor

The world of 50 years ago was a lot different than it is today. An individual often worked at the same job all his or her adult life, lived in the same house, and stayed married to the same spouse. In those days, too, one spouse could support a family, paying for college ordinarily didn’t require taking out a second mortgage, and people could look forward to retiring on Social Security and possibly a company pension.

Today, your hopes and dreams are no different. Like most people, you probably want to buy a home, put your children through college, and retire with a comfortable income. But the world has become a more complex place, especially when it comes to your finances. You may already be working with financial professionals--an accountant or estate planner, for example--each of whom advises you in a specific area. But if you would like a comprehensive financial plan to help you have confidence in your investments, you may benefit from the expertise of a financial advisor.

Services a Financial Advisor May Provide

Even if you feel competent enough to develop a plan of your own, a financial advisor can act as a sounding board for your ideas and help you focus on your goals, using his or her broad knowledge of areas such as estate planning strategies and investments. Specifically, a financial advisor may help you:

• Set financial goals
• Determine the state of your current financial affairs by reviewing your income, assets, and liabilities, evaluating your insurance coverage and your investment portfolio, assessing your tax obligations, and examining your estate plan
• Make recommendations about specific products and services (many advisors are qualified to sell a range of financial products)
• Develop a plan to help meet your financial goals that addresses your current financial weaknesses and builds on your financial strengths
• Monitor your plan and periodically evaluate its progress Adjust your plan to help meet your changing financial goals and to accommodate changing investment markets or tax laws.

Some Misconceptions About Financial Advisors

Maybe you have reservations about consulting a financial advisor because you’re uncertain about what to expect. Here are some common misconceptions about financial advisors, and the truth behind them:

Most people don’t need financial advisors
While it’s true that you may have the knowledge and ability to manage your own finances, the financial world grows more intricate every day. A qualified financial advisor has the expertise to help you navigate a steady path towards your financial goals.
 

Financial advisors are only interested in comprehensive plans
Financial advisors generally prefer to offer advice within the context of a client’s current situation and overall financial goals. But financial advisors frequently help clients with specific matters such as rolling over a retirement account or developing a realistic budget.

All financial advisors are the same
Financial advisors aren’t covered by uniform state or federal regulations, so there can be a considerable disparity in their qualifications and business practices. Some may specialize in one area such as investment planning, while others may sell a specific range of products, such as insurance. A qualified financial advisor generally looks at your finances as an interrelated whole, and can help you with many of your financial needs.

Financial advisors serve only the wealthy
Some advisors do only take on clients with a minimum amount of assets to invest. Many, however, only require that their clients have at least some discretionary income.

Financial planners aren’t worth the expense
Like other professionals, financial advisors receive compensation for their services, and it’s important for you to understand how they’re paid. But a good financial advisor may help you save and earn more than you’ll pay in fees.

When is it Time to Consult a Financial Advisor?

In many cases, a specific life event or a perceived need may prompt you to seek professional financial planning guidance. Such events or needs might include:

• Getting married or divorced
• Changing jobs or careers
• Planning for your retirement
• Developing an estate plan
• Having a baby or adopting a child

• Paying for your child’s college education
• Buying or selling a family business
• Coping with the death of your spouse
• Receiving an inheritance or a financial windfall

You don’t have to wait for an event to consult a financial advisor. UMassFive has three on-staff Financial Advisors that serve our five branches. Our advisors will gladly review your current financial situation, give you a second opinion on your financial plans, and help chart a course for wise investing. It’s never too late—or too early—to get started. Schedule your complimentary review today!

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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. UMassFive College Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members. CUSO Financial Services, L.P. (CFS) and its Registered Representatives do not provide tax or legal advice. Clients should always check with their tax advisor before engaging in any transaction involving IRAs or tax-advantaged investments. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.