5 Reasons You Need a Financial Advisor in 2022

In today’s world of investing apps and endless financial advice available online, it can be tempting to try to manage your investments and assets on your own.

However, contrary to the narrative pushed by flashy marketing and savvy social media campaigns promoting the next big finance app, the truth is more Americans than ever are turning to financial advisors to successfully manage their assets and investments.

44% of individuals surveyed by MDRT reported the major events of 2020 made them realize the benefits of working with a financial advisor.

Additionally, 28% of Americans who had a trusted financial advisor to guide them through the chaos caused by the coronavirus pandemic saw their household income increase in 2020.

This has created a compelling case for tried-and-true wealth management, particularly when you consider that over 33% of American families saw their overall income fall in 2020.

In this article, we’ll break down the top 5 reasons you should consider working with a financial advisor in 2022 to optimize your investment strategies and streamline asset management.

But, before we get into that...

What Is a Financial Advisor?

Financial advisors are investment and financial specialists, with deep knowledge of markets, trends, and financial analysis and planning. The best financial advisors provide insight and guidance on all matters related to their client's finances.

Whether you’re managing a stock portfolio, preparing complicated business and investment taxes, outlining a path to retirement, or seeking expert advice on investments like real estate and business acquisitions, having a skilled financial advisor in your corner affords the best odds of success.

Financial advisors may hold a variety of degrees and certifications related to finances, taxes, and analysis. Common certifications held by financial advisors include:

● Certified Public Accountant - To earn their certification, CPAs complete rigorous collegiate courses that cover finances, taxes, ethics, and of course, accounting strategies and best practices. They must also complete a rigorous certification and ethical exam before earning the title of CPA.

● Personal Finance Specialist - Personal Finance Specialists are CPAs that have a minimum of three years of work experience, and have undergone additional education and training in various areas of wealth management. Personal Finance Specialists must pass a certification exam that ensures expert-level knowledge and skill at retirement and estate planning, investments, tax management, and more.

● Certified Financial Planner - CFPs are similar to PFS and undergo over 1,000 hours of post-graduate education and training before taking an intensive certification exam. CFPs often specialize in insurance, taxes, and wealth planning.

Top 5 Reasons You Need a Financial Advisor in 2022

Now, let’s break down the top 5 reasons why droves of individuals are turning to financial advisors in 2022 to maximize returns, grow their wealth, and confidently plan for the future.

1. Financial Advisors Live, Eat, and Breathe Finance

Many individuals are hesitant to hand over the reins of their hard-earned investment portfolio to anyone, even a skilled financial advisor.

But keeping track of all of the details, trends, and developments that can affect the health of your portfolio is (oftentimes more than) a full-time job.

Trying to juggle your personal and professional life while also staying up to date with your portfolio is a recipe for burnout and lackluster returns.

By retaining a financial advisor, you gain the undivided attention of an experienced professional that has made tracking fluctuating market variables their career.

2. Financial Advisors Keep Client’s Emotions in Check

Emotional decision-making is a natural phenomenon humans just can’t seem to shake, especially when it comes to money.

Emotional investing can lead to a cycle of harmful behaviors that impact the health of your portfolio. Emotional investing diverts investors from their established plans and goals and exposes them to unnecessary and unaccounted for risk.

Failing to keep emotions in check when investing also leads to attempts to time the market, revenge trading, and impulse trading, which can all be devastating to long-term financial growth.

3. Financial Advisors Offer Comprehensive Wealth Management

Financial advising isn’t just about stocks and futures. Financial advisors are also skilled tax professionals, estate planners, and insurance and regulatory compliance experts.

4. Financial Advisors have Extensive Education and Experience

It’s true there is more financial advice and information than ever before available online. However, that may not be an entirely good thing.

Misinformation, bad actors pushing self-serving agendas, and sensationalized videos chasing clicks for ad revenue muddy the water when it comes to sound financial advice available online.

Financial advisors have a deep personal understanding of the intricacies of wealth management from their extensive education and experience and access to the most current and reputable sources for trading and financial information.

5. Financial Advisors Decrease Stress, Increase Confidence

Managing your assets can be overwhelming, and when markets turn or unexpected circumstances like the coronavirus pandemic arise it can even be downright scary.

In a survey completed by Fidelity, 77% of respondents reported that if they had a financial advisor to help them invest, it would make them more confident about their financial future.

The decrease in stress associated with having investments managed by a professional was even more significant. A shocking 86% of individuals surveyed reported feeling less stressed after working with a financial advisor.

To learn more about financial advising, investment strategies, wealth management practices, and more, check out our blog. You can also contact one of our financial experts directly to learn more about the benefits of working with a financial advisor in 2022.