If you are trying to manage your money without a qualified financial advisor or wealth manager, you could be putting your money and your future at risk. While today’s “robo-advisors” and online and digital financial planning tools allow you to be more engaged than ever in managing your wealth, going it alone can be a major gamble.
Here are three reasons you need a financial advisor or wealth manager in the digital age.
- The big picture. While wealth managers do help you choose investments and execute transactions, good advisors do much more than that. They will look at your big picture, assessing your financial situation and giving you a roadmap of strategies and investments to help you reach your financial and life goals. A portfolio does not stand on its own, and a wealth manager adds value well beyond portfolio management, guiding you through the complexities of retirement planning, investing strategies, tax issues, and more.
- Improved investment performance. Beyond getting your overall finances in shape, a good wealth manager can also improve your investment performance. Advisors earn their fees by acting as behavioral coaches, as well as money managers, helping you maintain an even keel and keep your long-term objectives in sight. A Vanguard study estimates that clients who work with a good financial advisor will receive on average a 3% increase in the value of their portfolios each year (Investopedia, “How Finance Advice Can Boost Your Returns,” June 2019).
- Simplifying your life. Properly managing your investments and making the right financial decisions on your own requires continuous time, skill, and effort. A good wealth advisor will save you time and help simplify your financial life. That includes implementing a strategy, staying on target with savings and retirement goals, making adjustments when life situations change, and reducing stress and keeping you on track during market fluctuations. If a financial advisor frees up your time so you can concentrate on making more money at work, or spending more time with your family, then that is advice well worth paying for.
The bottom line: You're more than just an investment portfolio. And while “robo advisors” and digital tools have improved the delivery of financial services, they cannot replace the wisdom, adaptability and peace of mind you get with a human advisor. Today’s wealth managers offer a hybrid system that takes the client-advisor relationship to the next level, where an interactive, digital platform is combined with the services of a qualified professional, helping you meet not only your financial goals, but also your life goals.
If you are looking for a wealth manager to help grow your wealth and protect your future, the Enterprise Wealth Management team can help.
Daniel Burke, JD
Senior Financial Advisor
Senior Vice President
Investment and Insurance products are not a Deposit, not FDIC Insured, not guaranteed by Enterprise Bank, not Insured by any government agency, and may lose value.