Gerhard Herrera-Pahl Highlights 5 Reasons Why Everyone Needs a Financial Advisor
Many people believe that they will only need the services of a reputable and experienced financial advisor if and when their portfolio value hits the magic 7-figure mark, or when they reach the end of their career and start thinking about things like organizing their estate and establishing a legacy. However, the fact is that virtually everyone would benefit from working with a financial advisor — including people just starting out on their careers and embarking on their wealth building journey.
According to experienced financial advisor Gerhard Herrera-Pahl, here are the five key reasons why everyone needs a financial advisor:
1. Financial Advisors Create and Optimize a Personalized Investment Plan
The foundation of building wealth, achieving lifestyle goals, and minimizing taxes and other avoidable costs is a robust personalized plan. Comments Gerhard Herrera-Pahl: “Financial advisors not only help build a plan with their clients, but they monitor, re-balance and optimize the plan throughout various life stages and situations.”
2. Financial Advisors Open the Door to More and Better Options
There are numerous options available on the investment landscape, including many that are unknown to most retail investors. Financial advisors open the door to beneficial and relevant products that would otherwise not be easily available or accessible.
3. Financial Advisors Provide Clarity and Perspective
Investing for the long-term is a challenge for many people, because they react emotionally to market and economic news; especially if it is negative. For example, during the Great Recession that erupted in 2008, many people fled the stock market to stem the financial bleeding. Gerhard Herrera-Pahl says financial advisors provide clarity and perspective, and they help clients make informed decisions based on hard data instead of gut feels or guesstimates.
4. Financial Advisors Save Time and Effort
Most people barely have enough time to balance their checkbook — let alone invest hours a week researching everything from mutual funds to tax strategies to regulatory changes, and the list goes on. Comments Gerhard Herrera-Pahl: “Financial advisors help clients save time and effort, and also ensure that they have the latest and best information. Things are always changing in the financial services industry.”
5. Financial Advisors are Accountable
Last but certainly not least, financial advisors are accountable to their clients — not the other way around. If they fail to deliver results and provide responsive and professional communication, they will find themselves on the chopping block. Gerhard Herrera-Pahl thinks that some individuals are nervous about working with a financial advisor, because they fear that they will lose control over their finances and investment decisions. Actually, the opposite is the case. They will gain control and be empowered.
The Bottom Line
The moral to this story is simple: people of all ages, including young adults who are starting out their careers, should work with a reputable and experienced financial advisor. It is not a relationship that only benefits the ultra-wealthy. Indeed, it is a relationship that helped them get there in the first place.