By Paul Roldan, CFP®
Long-term financial planning has never been more important than it is today. In times of economic volatility, working to attain financial stability takes center stage. At this point, having a wealth manager on your side can make a huge difference.
Despite their many benefits, wealth managers are retained by only a little more than a quarter of all Americans. Those who don’t consult with a wealth manager may believe these professionals are too expensive. They may be overly self-assured in their abilities to manage their finances. Some may think they don’t have enough financial assets to warrant hiring a consultant.
However, there are plenty of benefits a professional financial advisor can bring to the table—no matter what your financial status may be. Here are some advantages you may lack without one.
1. Strategic Financial Planning
A wealth manager helps you devise a custom roadmap for your finances. They concentrate on both long- and short-term goals, relying on past experience and current knowledge to craft a solid plan. Wealth managers balance your goals and resources to put you in the best position to grow.
Without a wealth manager, an investor may not come up with a comprehensive investment strategy. They may make reactive financial decisions based on limited information.
2. Guided Investments for Sustainable Growth
A wealth manager helps individuals build diversified investment portfolios. They consider your risk tolerance, estimated timeframe, and financial objectives. They also stay updated on market trends, economic conditions, and upcoming opportunities to put you in a position for continual growth.
Without a wealth manager, novice investors may focus on overly hot commodities that turn out to be fads. They may sell off shares in a panic in sudden market drops. They may fail to reallocate their capital to build a balanced portfolio.
3. Optimized Tax Planning
Tax planning is one of the most important, specialized services a professional wealth manager offers. They use strategies like tax-loss harvesting and tax-advantaged investment accounts to level out your tax liability. Most crucially, a wealth manager stays on top of relevant (as it pertains to personal and business investments) changing tax codes and regulations so you remain compliant.
A tax manager assists an individual with not overpaying taxes by forecasting returns and strategizing accordingly. A proper tax strategy can optimize your tax situation by intentionally offsetting capital gains with capital losses and possibly avoiding triggering a higher tax bracket.
4. Structured Retirement, Estate, and Wealth Transfer Planning
For many working individuals, saving for retirement is a primary goal. A wealth manager helps clients develop clear strategies for building wealth for retirement in a tax-efficient way. A wealth manager can also assist with estate planning and passing wealth down to heirs. They find opportunities for tax mitigation through charitable giving or structured partnerships.
On their own, individuals run the risk of outliving their savings, overlooking inflation, misunderstanding distribution requirements, or raising family disputes over their estates. They may not understand how trusts and other tools can preserve their legacy.
5. Wealth Managers: Steady Financial Guidance in Changing Times
Personal finances can be complex. With so much happening, individuals managing their own wealth may miss out on profitable opportunities, make erroneous decisions, or take on excessive risk.
With a wealth manager, you have heightened experience and knowledge in your corner. They can align your financial movements with your long-term goals. They make coordinated, tax-efficient moves that can put you and your family in a favorable position from now through retirement — and even beyond.
Comprehensive Wealth Management With the AllGen Wealth Managers
AllGen Financial Advisors, Inc. is invested in our clients’ success. We feel strongly about the role money plays in attaining financial and personal freedom. When you get in touch with AllGen, you can work with experienced fiduciaries who focus squarely on your financial goals and needs.
To schedule a complimentary meeting, call (407) 210-3888 or email advisors@allgenfinancial.com.
Important Disclosures: The information provided here is of a general nature and is not intended to answer any individual’s financial questions. Do not rely on information presented herein to address your individual financial concerns. Your receipt of information from this material does not create a client relationship and the financial privileges inherent therein. If you have a financial question, you should consult an experienced financial advisor. Moreover, the hiring of a financial advisor is an important decision that should not be based solely upon blogs, articles, or advertisements. Before you hire a financial advisor, you should request information about the financial advisor’s qualifications and experiences. Past performance is no guarantee of future results. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative (or “informational”) purposes only and not intended to be reflective of results you can expect to achieve. AllGen Financial Advisors, Inc. (AllGen) is an investment advisor registered with the SEC. AllGen does not provide personal financial advice via this material. The purpose of this material is limited to the dissemination of general information regarding the services offered by AllGen. The Disclosure Brochure, Form ADV Part II, which details business practices, services offered, and related fees of AllGen, is available upon request.
