Ask anyone who has tried to manage the entirety of their investments and financial planning on their own, and you will find the work oftentimes chews up their limited time and may even prove quite frustrating. Though the DIY financial movement certainly has its merits, financial planning may not be the best “do it yourself” endeavor. Lean on a fee-only fiduciary financial advisor in Wilmington, Delaware for guidance and you will be liberated to focus on work, family, and leisure pursuits without worrying about your financial future.
Furthermore, a fee-only fiduciary planner is vastly superior to non-fiduciaries and those who rely on commissions to earn a living. Let’s take a quick look at why this is the case.
Comprehensive Financial Planning Done the Right Way
Financial planning that sets the stage for an enjoyable future should be centered on advancing your interest. This is precisely why you need the assistance of a fiduciary planner. A fiduciary has a duty of care to you, the client. Lean on a fiduciary financial planner to craft a comprehensive financial plan for your future. This professional can provide insightful guidance, ultimately helping you strategically invest your money and plan your financial future so you can generate cash flow through your retirement.
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Fee-only fiduciary financial planners employ a balanced approach which considers your cash flow needs, risk, and return. In short, they sweat the small stuff of your financial plan on your behalf so you are empowered to narrow your focus on your job, your loved ones, and enjoying life.
As an example, a fee-only fiduciary planner’s guidance ensures your portfolio withdrawal rate is at the right level. If this rate were too high, it would make it difficult or even impossible for your investment plan to set the stage for success throughout your life. Your fiduciary financial planner will gauge the extent of your cash needs prior to designing your unique portfolio. This might seem like common sense, yet a surprising number of investment advisors fail to take this essential step.
A Proven Process for Financial Planning
While some financial planners attempt to upsell products instead of providing comprehensive solutions, the best in the business implement a proven process for each client. This process includes collecting and studying each client’s nuanced financial documents at the start of the professional relationship. The best in the business will invest the time and effort necessary to gather all relevant information and develop a thorough understanding of each client’s distinct goals and objectives. An analysis of the client’s financial status at the current moment will be conducted.
The focus then shifts to creating and presenting financial planning recommendations and implementing those recommendations. However, financial planning is not complete after investing. These investments must be monitored regularly and adjusted when necessary. The overarching aim is for financial planning to set the stage for successful and sustained wealth expansion and management.
Truly comprehensive financial planning provided by a fee-only fiduciary who has your best interests in mind at all times may make the most sense. Comprehensive financial planning involves a careful review of each area that affects your personal financial health, whether it is retirement planning, insurance, estate planning, tax mitigation, debt management, employee benefits, and/or income planning.
The Right Investments for You
Once your financial planner executes the planning process and provides investment recommendations along with financial planning strategies suitable for your unique situation, a diversified investment plan will be designed with your unique goals in mind. Investment Policy Statement (IPS) guidelines are also documented at this time.
The advantage of an IPS is that it provides a written explanation of guidelines for investing. The IPS’s development is fueled by rational thinking that sets the stage for savvy, disciplined, and consistent investing, as opposed to investment management fueled by emotions. Establishing clear guidelines ensures portfolio alterations are made in accordance with facts, research, and an in-depth analysis; rather than a gut feeling, an emotional reaction, or simply guessing.
Strategies for Tax Mitigation
Comprehensive financial planning entails tax mitigation. Your fee-only fiduciary financial planner will assign the recommended investments to tax-free, tax-deferred, and taxable accounts with the overarching aim of reducing your tax burden. Once your unique investment portfolio is implemented, your financial advisor will monitor those investments, reallocating and rebalancing your portfolio in accordance with the dynamics of the economy while adhering to your IPS. Planning sections will be reviewed at specific intervals to identify new investment and financial planning recommendations as your unique financial situation changes.
An Objective Financial Planner With few Conflicts of Interest
Above all, the most important reason to hire a fee-only fiduciary financial planner to manage your money is that this professional has fewer conflicts of interest than those who are not fiduciaries. As noted above, a fiduciary owes you, the client, a duty of care.
Furthermore, a planner who works for a fee from you has fewer conflicts of interest because they are paid by you, the client, as opposed to an employer or a 3rd party provider of financial products. This means you will be dealing with a fair and objective financial planning professional rather than a salesperson who operates under the guise of being a supposedly straightforward financial planning specialist.
When you obtain assistance from a fee-only fiduciary planner, they do not have an incentive to sell you certain products. They have no potential for financial gain from promoting a specific fund or product.
Though a fee-only fiduciary planner certainly has a minor conflict of interest in that he or she wants your business, this is a clear and easily understood conflict of interest which is true of any business relationship. After all, professionals in all walks of life are understandably interested in retaining their clients’ business.
Financial Advice Worth Every Penny
Financial planners who are not fiduciaries and are not compensated through a fee-only structure are likely to steer clients toward specific products and services. Conversely, fee-only fiduciaries spend their time researching investment strategies and opportunities on your behalf. In short, this objective professional cannot receive a commission, so the focus is squared on pinpointing the optimal financial products for your unique needs.
At Clariti Wealth Advisors, located in Wilmington, DE, we have been helping our clients build sustainable wealth for over 30 years. We do everything with one result in mind, and that’s you achieving your life goals. Contact us today and start planning for a brighter tomorrow.