The Real Reason You Need A Financial Advisor

Posted December 06 2017
by PenFed Your Money
The Real Reason You Need a Financial Advisor

Is this the year you vowed you’d get around to organizing your retirement investments and long-term finances? How’s that coming — it is coming, right?

Knocking out a long-term financial strategy may lie well within your interests and your capabilities, but for many people, the available time to make it happen remains just beyond their schedules and energy. It’s one thing to check up on your accounts and long-term investments on a semi-regular basis. It’s another thing to weave those together into a comprehensive plan for the future that covers your needs and helps you build your assets.

A financial advisor brings fresh insights and solutions to your financial landscape with time and energy to spare. A dedicated professional can give you long-range perspective right here, right now, with a plan that preserves, manages and builds on what you already have.

What’s your long-term plan?

If your company has a retirement plan, you may feel like you’re ahead of the game, but have you considered how any 401(k) plans from previous employers and other pension plans will figure in? Have you thought about college funds for the kids? How long will you need to work to support the retirement lifestyle you’ve been hoping for? Have you been planning to invest in stocks someday?

An effective long-term financial plan weaves together a number of concerns.

·      Investment planning

·      College funding

·      Tax savings and additional income

·      Federal Employee Retirement System (FERS)

·      Civil Service Retirement System (CSRS)

·      Thrift Savings Plan (TSP)

·      401(k) rollovers and IRAs

Slow and steady wins the race

You may have assumed that once you got older and have more money, you could make some smart investments and really reap the big benefits. The truth is that often the smartest fund managers can’t beat the market. Only about one in 20 actively managed domestic funds beat index funds, according to recent research published from Standard & Poor’s.

So if professional advisors can’t even beat the market, you may wonder, why should you hire one at all?

One of the most important ways a professional financial advisor can help is simply by making your long-term finances a priority. It’s hard to implement a long-term plan carved out of time snatched from evenings and weekends. Put a seasoned professional in charge, though, and watch your financial plans whirl into motion — and backed by regular, long-term follow-up, too.

A financial advisor won’t recoil from the inconvenient questions you’ve put off answering for too long, like what you would do if you lost your job next week or who’ll take care of your spouse’s aging parents in another 10 years. Your advisor will help you stop talking about it and actually work out the answers. It’s the same kind of accountability you get from having a personal trainer or coach, only this is for your personal finances. Isn’t it worth hiring someone to finally make it happen?

A licensed financial professional can also open the door to investment opportunities that aren’t available to individual investors. If you’re concerned about diversifying your investment base, using a professional can get you access to these broader strategies that can produce a smoother ride for your money.

Planning your financial future

What should be on your long-term financial planning agenda? Try out our life stage calculators to see where you stand on retirement savings, investments, 401k and TSP plans, college savings, IRA options and insurance coverage. The calculators can help you spot where you fall short or where there are holes in your long-term plan.

Don’t put off creating a long-range plan because you don’t know where to start. PenFed Wealth Management available through CUSO Financial Services, L.P. (“CFS”) can help. Register for a seminar, use the life stage calculators, or connect with a CFS financial advisor to help you create an investment strategy that fits your finances. Because the rest of your life starts right now at PenFed.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Pentagon Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. PenFed Wealth Management is the marketing name for non-deposit investment products and services provided at Pentagon Federal Credit Union through CFS.


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