What Exactly is a Financial Services Professional? Do I Need One?
Financial Planner, Money Manager, Wealth Manager...it can be confusing to decipher what each of these financial services professionals provide. It can be even more confusing if you are looking to work with one. While many of these are interchangeable terms for a professional financial advisor, not all advisors provide the same services.
When selecting a financial advisor, consider whether you are just looking for only investment management, or if you also need comprehensive financial planning and consulting. You may have questions that need to be thoughtfully addressed with options offered to solve problems. Holistic advisors provide investment management, as well as financial planning, tax strategies and important relationship management services.
An asset manager gives direction on how your existing investable assets should be allocated based on your financial goals and your ability to cope with risk. Even amongst investment-focused advisors, they do not all operate the same. While fees vary, so does the investment process, investment strategies, and style of the advisor. Some advisors use the same investment model for each of their clients, while others take more consideration of individual needs, desires, and personal values. Some advisors trade on discretion, meaning that they make their best decisions on behalf of their client, while others collaborate with clients who want to be more hands-on. An advisor with a complete discovery process is more likely to have a personalized approach to their investment strategies.
Say you want to retire to a tropical island, buy a dream home, or leave something of significance to family or charity. Professional financial planners help their clients experience their greatest aspirations and meet essential needs – both short and long term. They do this by analyzing your current financial situation and creating a roadmap of major decisions to help get you there. They help you think about money making or saving opportunities that you may not have thought of, including tax savings and retirement and social security strategies. While fees and value adds such as access to financial planning dashboards factor in to choosing a planner, there is one distinct designation that sets some above the rest. The CERTIFIED FINANCIAL PLANNER™ designation requires education, experience, ethics, and comprehensive examination.
Often overlooked, the value of an advisor that truly knows you is immense. They have a wealth of experience from working with other clients and their own personal experiences to help guide you. At times, they even help couples navigate financial disagreements and adult children get started on their own financial journeys. Of major concern are information security breaches. Advisory teams that are familiar with your style of communication can often identify fraudulent attempts to access your accounts.
There are other factors to consider when choosing a financial advisor. Ask about their investment philosophy, their credentials and certifications as well as the demographic of their clients. If these are a match, the advisor should understand your life goals and financial objectives.
McGee Wealth Management, Inc.
12455 SW 68th Ave.
Portland, OR 97223
D. Linette Dobbins, CFP® is a Wealth Manager, President, and Co-Branch Manager of McGee Wealth Management, Inc, offering securities through Raymond James Financial Services, Inc. Member FINRA/SIPC. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of D. Linette Dobbins.