Can You Afford to Go It Alone?
The difference a qualified financial adviser can make
Many of us hire an accountant to help manage our taxes or look to an estate agent to help with a property sale. And we all rely on medical experts when it comes to our own well-being.
Why should our financial health be any different?
Investing is an area where drawing on the expertise of a dedicated professional—one who understands the market and knows how to design a plan that meets your needs—can have a profound impact. That impact can be measured both in monetary terms and in peace of mind. An adviser can also help with things like estate planning, designing a savings plan for your children’s or grandchildren’s education, and making tax-informed investing choices. An adviser can also fulfil another simple but crucial role: helping you navigate the complicated, often emotional, world of investing. They can do this by providing thoughtful, reasoned advice when economic conditions and hyperactive headlines may distract you from your goals. An adviser can temper expectations when markets surge and offer reassurance when they fall.
If you’re still not sure an adviser is right for you, consider some key questions.
Do I have the expertise?
Having a diversified portfolio—one that holds investments that follow what financial science has taught us—can help manage risk and put you in position to capture returns when and where they appear. It takes expertise to build a global portfolio of stock and bond investments that is right for your circumstances, whether that’s looking toward retirement, scheduling charitable donations, or considering estate planning.
Do I have the time?
Crucially, it’s an adviser’s role to follow the markets so you don’t have to. They track the latest research to help you make decisions that are informed by data and backed by years of academic scholarship. They monitor changes in your asset allocation over time and advise on rebalancing, so you can keep your portfolio on target. They review changes in tax laws and financial regulations to make sure you’re taking advantage of new opportunities and keeping your accounts positioned for the best outcomes.
When you’re adhering to an established plan developed with an adviser, that’s time saved every day—time you don’t have to spend tracking financial news for fear of missing something important. An adviser can free you from much watching, wondering, and worrying.
Do I have the discipline?
The benefit of a trusted professional keeping you on course isn’t measured just in hours spent managing finances. There’s also the freedom from anxiety and stress over whether you should do something and when. If you have an established plan, the answer, more often than not, will simply be: “Stay the course. Let the plan work for you.”
But that can be hard when the media is buzzing about the latest tech firm on the rise or attention-seeking crypto asset. It’s hard when your portfolio suddenly dips—or pops to a record high—and the voice in your head urges action.
Because, at the end of the day, perhaps the most valuable thing a financial adviser has to offer is calm. The calm that comes from knowing your investments are backed by financial science. The calm that comes from the confidence that you’re on the right track to meeting your goals, no matter the headlines. And the calm that comes from the reassurance that someone with clarity and objectivity is looking out for your best interests, especially when the ride gets rough.
That’s why the choices you make about an adviser—someone who understands markets and can help you navigate both tranquil seas and rough waters—can be as important as your choice of investments. Quality advice can have a profound impact on your overall financial experience, delivering in ways that go far beyond a simple rate of return. Because a successful experience ought to be defined by both the destination and the journey.
Diversification does not eliminate the risk of market loss.
Dimensional makes no representation as to the suitability of any adviser, and we do not endorse, recommend, or guarantee the services of any adviser. Individuals should carefully evaluate any adviser whom they may consider hiring. Individuals are responsible for monitoring their adviser’s investment performance.