Is It Worth the Money? Six Undeniable Benefits of Hiring an Investment Advisor
Delwin Graham & Eric Brown - Nov 19, 2020
. . . for those in a position to plan for investments, a registered investment advisor may be just what the financial doctor ordered. Here are six reasons why hiring an investment advisor makes total sense.
If you look at the financial health of most Canadian households, you'll find they are looking lean—and we don't mean the good kind. Across the internet, you can find source after source indicating that Canadians are starving when it comes to retirement savings.
According to CIBC reports, one-third of Canadian households have no retirement savings at all, and only 19% of Canadian households have $50,000 saved for retirement. Seniors are feeling the pinch when the average retiree age is 63½ years old. Meanwhile, the full retirement age is 65.
Need an Investment Advisor?
When many people struggle to meet their basic expenses due to rising debt, hiring a financial advisor may be down the list of priorities. Nonetheless, for those in a position to plan for investments, a registered investment advisor may be just what the financial doctor ordered. Here are six reasons why hiring an investment advisor makes total sense.
What Is an Investment Advisor?
An investment advisor is also known as a financial advisor. Investment advisors make investment recommendations, or they conduct securities analysis in return for a fee.
Investment advisors work with high-net-worth individuals to manage their assets. They have a fiduciary responsibility to act in the best interest of their client and are held to high standards of moral obligation.
Due to the nature of their business, investment advisors must always work in the best interests of their clients and recuse themselves from any dealings which could be considered a conflict of interest.
One way that investment advisors are ensured to uphold their fiduciary duties is that their success with investments is linked to their compensation structure. In short, their pay is directly linked to their success as an investor for you.
1. Advice on Saving
I think it's safe to say that when it comes to savings, most Canadians could use a makeover.
According to online reports, a new study from The Daily:
- The average Canadian has $854 in their savings account.
- The top 20% have savings of up to $41,393 per household.
- There is a large gap in savings between wealthy and low-income households.
When it comes to savings, most families are financially anemic. While hiring an investment advisor may come with a cost, it's better than the alternative of not saving at all. An investment advisor can provide advice on setting up a budget to help you save and stash away a little each month, which in the long term could pay off dividends.
Their fiduciary duty allows them a level of discretionary authority over your assets, as they are legally bound to work in your best interests. Any breaches in their fiduciary duty come with penalties and loss of their license.
2. Provide Investment Opportunities
An investment advisor can offer suggestions about investment opportunities like investing in a project, an idea, or a piece of property. Advisors have an extensive background in making financial decisions. They can help you weigh the risks for investment opportunities and evaluate where is best to invest for a maximum return on investment.
If you or your spouse are unclear as to where to invest your money, an investment advisor can help offer some clarity on the types of investments that may be best for reaching your unique financial goals.
3. Help Reach Specific Financial Goals
If you're a business owner or an accredited investor, it makes sense to hire an investment advisor to help you reach your short-term and long-term financial goals.
If you're a business owner, you may be leaving money on the table. Investment advisors are experienced professionals who can help you reduce complexity, help you plan for the future, and preserve your hard-earned wealth.
For those fortunate enough to be an accredited investor, an investment advisor can help you navigate the risky waters of private equity and ensure you're making the best financial decision with your assets.
4. Saving for Education
When you have young children, it's important to know that you're taking the necessary steps to secure their educational future. With the rising cost of education, it's crucial to start saving early.
Investment advisors can help you navigate the right resources and help you set up a plan to reach your goals for saving for your child's education. In some cases, some savings plans can only be used for education purposes, while other plans can be used for education or some other life event, like buying a house. An investment advisor will know the best plans to save, depending on your needs and interests as a family.
5. Creating a Retirement Plan
No matter where you are in your journey towards retirement, it's important to know that you have a plan. Your plan will be heavily dependent on your retirement goals, dreams, and aspirations.
Another factor that will go into your retirement planning is your current age and how aggressively you should save. A couple in their late 20s will invest in a completely different way than a couple in their 40s.
It's important to know the best investment options for you and your family to meet your retirement goals. An investment advisor is an expert in helping you plan for retirement, so it only makes sense that they would be a go-to resource for retirement planning.
As many families enter retirement, downsizing may become an option to put a little more money away for their retirement, as well as a way of reducing the complexity of their lifestyle. An investment advisor can help plan for investments based on the money you acquire from downsizing your home. Downsizing can bring a windfall of cash, and it must be invested wisely for your financial future and retirement.
Are You Ready to Contact an Investment Advisor?
If you're ready to contact an investment advisor, consider Graham Wealth Partners. Our team of experienced professionals is here to help you meet all your financial goals, no matter where you are in your investing experience. Whether you're just starting or closer to retirement, we'll always provide the same quality service, ensuring you get the best return on all of your investments.
Contact us today for the best in investment advisory services and everything in between.