Real Reasons to Hire a Financial Advisor

Image

Scott Webb
“Advice For Life”
Webb Financial Group LLC
“The Wealth Management Firm”

What is the biggest reason you hire a financial advisor? If you read and believe the media hype, you might think it is to outperform the stock market.  This is very difficult to do.  In fact, most fund managers can’t over a 10 year period.  I did a research paper back in 1988 and could not find any empirical evidence that a fund manager could outperform the indice they were trying to beat.

If a financial advisor can’t do this then why hire them?  Here are some compelling reasons from Sally Krawcheck(Former president of Smith Barney), Linked In, March 26, 2013.

1. Ask you questions you don’t want to talk about: How to take care of your aging parents? Do you have a will?  What would you do if you lost your job?  These are great questions you need to address by somebody that talks about this every day.

2. Put together a financial plan: When are you going to retire? How much life insurance is enough? Am I paying too much in taxes? How do all my investments work together?

3. Identify risks in your portfolio: You might own 5 investments all in one asset class.  You might have all your money in stocks at age 65 and not know how much risk you have.

4. Talk you through market volatility: Research has shown that historically the stock market has recovered over time.  It is important if you have long term goals to be patient on not sell at the bottom depending on your personal situation.

5. Identify your biases with objectiveness: This is a huge one.  In 1996 I met with a worker from Owens Corning with all his money in Owens Corning stock.  He would be a lot wealthier today if he would have diversified.  He had worked there for 30 years and told me the company wasn’t going anywhere…

These are some points that some people might not think about when they are planning their future.  My opinions are general in nature and not intended for any specific individual.  Hopefully you find a good advisor that addresses these concerns for you.

Webb Financial Group LLC and can be reached at scott.webb@lpl.com, (740)454-6113 or http://www.webbfinancialgroupllc.com.  Securities are offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

Not NCUA Insured
Not Credit Union Guaranteed
May Lose Value

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: