what is a financial advisor

What is a Financial Advisor & Why Do You Need One?

Finances are a very personal aspect of our lives. How we handle our money can be extremely revealing as to the type of person that we are. Because of this, having someone else involved in our financial lives can leave us feeling exposed and vulnerable. This is why having a financial advisor that you can trust is so important. A trusted financial advisor can be one of your most valuable assets.

What Is a Financial Advisor?

The term “financial advisor” can be a little vague. You might be surprised to learn that their duties reach far beyond merely choosing investments for your portfolio. In truth, this professional wears many hats. Sure, they help you to choose wise investments but they also educate clients in financial topics, plan and implement financial strategies, help select beneficial insurance coverages, and even assist in tax matters.

In addition to all of this, financial advisors are friends and neighbors. They have a vested interest in helping their communities to grow and prosper.

The Value of a Trusted Financial Advisor

Although there are no specific licensing requirements for financial advisors, professionals who build trust with the right licenses can help make your financial goals a reality. For example, a CERTIFIED FINANCIAL PLANNER™ has completed and passed relevant coursework and examinations that ensure their ability to apply their education to financial situations. A financial advisor with designations such as CFP®, CFA®, ChFC®, or RIA is worth the investment because you can trust that they operate with competency and ethics.

However, the true value of a financial advisor is in the person. You see, a trusted financial advisor only becomes such by forming personal relationships with their clients. After all, trust is formed in relationships. Therefore, the right advisor for you must also be the right person. Likewise, a good financial advisor must also be discriminating. They should only take on clients who are a good fit in both personality and expectations. 

As a client, you shouldn’t want to hire an advisor that compromises their integrity just to take on as many clients as they can. Nor should a financial advisor want to take on a client with an unscrupulous nature that might tarnish the reputation of the firm and anyone associated with it.

With all of these things in mind, the value of a trusted financial advisor isn’t simply measured in financial gains. It is measured in having peace of mind that your financial life is in the hands of an individual who cares about more than just your financial life. 

Local Roots and Personal Service

Heritage Investors understands the value of personal relationships. We work hard to make our clients feel like family. As a matter of fact, it isn’t uncommon for our Knoxville “client family” to drop into the office throughout the day just to say hello, show us photos of their new grandchildren, or even to tell us all about a recent vacation. Our team cherishes these moments because we are invested in our clients’ lives. Just like many of them, we have roots in East Tennessee and share common life experiences and values. 

There have been moments in our careers when we have held grieving wives, mothers, and children in times of loss. On the other hand, we’ve been very fortunate to have opportunities to celebrate many wonderful moments in the lives of our friends and neighbors. These relationships are something that we hold very dear at Heritage Investors. We are actively involved in their lives as they are in each of ours. 

This is something that you just cannot get with large national firms. Remember that the next time you search Google for “Certified Financial Advisors near me,” Heritage Investors is in your own backyard. However, do not confuse proximity with quality. The team at Heritage Investors has as much if not more experience, education, and national recognition than many of the people you might work with at the big-name firms. 

Why Do You Need an Advisor?

Trying to manage your investment portfolio, assets, and wealth in a way that actively and effectively works toward your financial goals is a bit like performing surgery on yourself. Although it’s possible, wouldn’t you feel better trusting it to the professionals? A financial advisor can provide you with a clear, objective path toward your financial goals that is rooted in education and experience. 

Keeping all of your assets aligned and moving in the same direction takes constant monitoring and adjustment. The task is daunting enough on its own but becomes exponentially more difficult when emotion enters the picture. You may be the most even-tempered person in the world but emotion has a huge impact on our financial decisions. This is why it’s so important to have an objective voice of reason helping you to achieve your goals. These are the reasons that you need to have a trusted financial advisor on your side. 

What Does a Financial Advisor Cost?

At the end of the day, there are always costs associated with having the best support team on your side. After all, they are providing you with a valuable service. The thing is, a good financial advisor will often yield financial returns that far outweigh the fees that they charge you. 

The cost of a financial advisor can vary but typically is around 1%. Factors can range from the type of financial services being provided to the number of assets being managed. Usually, more assets mean lower fees because there is a greater opportunity to earn. Some firms offer monthly or annual flat rates, while others operate on a fee-only basis.

My own firm, Heritage Investors, offers different fee structures for different services. For example, investment portfolio management fees are different from wealth management fees. Our reason for choosing this method is complete transparency. Because we have a fiduciary obligation, we wanted to ensure that our client-family knows exactly what they are being charged upfront. We are always happy to explain these fees at any time. 

Are you ready to begin your own financial journey? Schedule a call with us to meet with one of our certified financial advisors and find out how we can help you build plans that help make your financial goals a reality!