Real Reasons to Hire a Financial Advisor

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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.

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May Lose Value

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What to Do With a Tax Refund

It’s tempting to blow your tax refund on an impromptu shopping spree or the latest tech gadget, but don’t drop those dollars just yet. Before you spend your refund, think about where that money would really be best used.

Before you even think about splurging, put 50% of your tax refund toward paying off debt. Apply it to your mortgage principal, make a larger-than-usual monthly credit card payment, or pay off part of a student loan.

Another option: Nail down any big-ticket items coming up. A tax return can provide a nice chunk of cash to pay for that expensive dental work you’ve been putting off, overdue car repairs, or a semester’s worth of college textbooks. You even could use your refund as part of a down payment on a new car.

Saving money for the long term is another smart decision. Stash part of your refund in an emergency fund, share certificate, or IRA (individual retirement account) at Hopewell Federal Credit Union.

You also could use your return to add equity to your home. Tackle those repairs you’ve been meaning to get around to, or make over your yard with some landscaping. Using your tax refund as a base, you could even take out a small home equity loan from Hopewell Federal Credit Union to cover projects you need done now.

After you’ve covered your other financial bases, treat yourself. Put some of your refund toward a trip you’ve been dying to take, sign up for a gym membership, or enroll in a class to learn a new skill.

However you choose to use your tax return, think about it first, look at your options, and make the best financial decision you can. If you need help setting priorities, meet with a Hopewell Federal Credit Union financial adviser today.