Professional financial advice targeted toward you, your life, and your goals work much better than generalized, scattershot investing tips.
Have you ever received financial advice that didn’t fit your personal situation or goals? Many advisors will resort to rules of thumb to help explain and dispense advice. Unfortunately, these time-tested rules don’t work well for all investors.
Everyone’s investment and financial planning needs defy a one-size-fits-all planning strategy. Most financial situations are unique and require personalized, realistic and achievable advice – especially when working with clients from different professions and industries.
Advisors should ask specific questions about your financial goals. Do you want to save for retirement or a child’s college education? Retire early or later? Buy a business? Sell or buy your home?
One big question: What do you do for a living? Many professions require specific planning strategies due to certain employer benefits, insurance needs, debt management or retirement income. For example:
Life stages also often determine the need and perceived availability of specific financial advice. According to a recent survey, only one-third of Americans consistently take action after receiving financial advice. Age, gender, and circumstances of advising clients, however, often predicate who will take financial advice, as does the specificity of that advice.
The survey also found that the desire to seek advice and take action differed based on age, gender, and other individual factors:
When you’re talking to your financial advisor or interviewing potential planners, ask their specific experience with individuals in your profession and stage of life. Ask about strategies unique to your situation and settle for nothing less than advice personalized to your needs.