I love a little DIY. It’s so satisfying to finish a project with my own elbow grease and creativity. I’ve painted rooms, finished furniture, installed shelves, made curtains, and hung new lighting. The other day I made a fancy three-tiered dessert stand with the help of a power drill, some thrift store plates, and an instructional YouTube video.
As independent as I am, though, there are things I don’t want to do myself. That’s why I’ve got a handyman. So when the grout in the shower was looking nasty, I was happy to give him a call. And when I needed the floor shored up in my basement workshop, he and his table saw got the job done.
DIYing comes with knowing your limitations, and valuing your own time. If a project is way out of my skillset, it doesn’t make sense to struggle through it and end up doing a shoddy job. If I’m going to spend time on something, I’d like it to be fun and fulfilling.
Which brings me to a few other things I don’t want to do myself – taxes, retirement modeling, and investing. Not only do I find financial stuff un-fun, it makes me anxious. I know there are pros who can do it way better – people with the right skills, experience, and tools. And, with their help I’ll feel less anxious about my money.
Finding the right financial advisor
If you’re like me and would rather spend your time experimenting with sourdough starter or a new ice cream maker, you’ll want to find the right advisors for your financial matters. A good place to start is by understanding different types of advisors:
Fiduciaries: These advisors are bound by their licensing organization to act in their clients’ best interests. Their fiduciary responsibilities will be detailed in the agreements they provide when you begin working together. Fiduciaries include Certified Financial Planner® professionals (CFP®), Investment Advisor Representatives (IAR), and Chartered Financial Analysts (CFA). Arrivity’s team includes 5 Certified Financial Planner® professionals and 2 Investment Advisor Representatives who together to provide comprehensive financial planning services for individuals and families. Their services are priced based on an hourly rate. They will guide you in making a myriad of financial decisions and empower you to make financial transactions on your own without the requirement to manage your assets. In many cases, this keeps your costs much lower than if you pay an asset under management fee.
Non-fiduciaries: Registered Representatives working for broker-dealers are licensed to buy and sell securities on your behalf and usually earn commissions from each transaction. They have an incentive to maximize the value of your portfolio, but they may also steer investments toward trades that generate higher commissions for themselves. Many Registered Representatives are also Investment Advisory Representatives or Certified Financial Planner® professionals (CFP®). But those who are Registered Representatives are not fiduciary advisors. Their licensing does require them to adhere to a suitability standard – recommending investments based on your financial needs and circumstances.
Specialty advisors: Some financial advisors assist clients in specific areas like tax preparation, insurance, and estate planning. There are even concierge financial management firms that handle everything including bookkeeping and bill paying for clients who can afford that kind of thing. Your financial planner may recommend that you have specialized advisors on your team. Just be sure to look into their experience, licensing, and compensation policies.
Robo-advisors: If you are looking for a more DIY approach, there are automated tools available. Most financial institutions and investment firms have online tools you can use to model different scenarios. Stand-alone financial planning tools are also available. It can be fun to plug in different numbers and create predictions, but DIY tools tend to only scratch the surface. Nothing replaces a human when you need financial advice that aligns with your goals.
Look for an advisor that fits
If your main focus is to maximize the value of your money, you could conclude that the best financial advisor is the least expensive one. But admit it, you wouldn’t hire the cheapest plumber or roofer or auto mechanic unless you’re certain they’re going to deliver quality and stand by their work. The cost of failure is way too high.
Choosing a financial planner is a bit like choosing a therapist. They’re someone you’ll be talking to about your goals, your dreams, and maybe even your mistakes. In addition to feeling confident about their expertise, you’ll want to be comfortable with their approach, and even their personality.
Arrivity financial planners customize their advice for each client and maintain an ongoing relationship so your financial plan can evolve as your life changes. Arrivity planners also work as a team so you can find the right fit for your needs and more than one person knows your situation.
Questions to consider when you’re looking for a financial advisor:
What kind of financial advisor is best for you? You can learn how Arrivity approaches financial planning on our website.
Do you want to maintain control of your assets and get trusted professional advice? An advice-only planner may be a good choice for you.
Do you need a specialty financial advisor on your team? Your Arrivity financial planner can recommend professionals to help with taxes, estate planning, and other services.Please contact us at 206.217.2583 or info@arrivity.com if we can assist you or someone you know with financial planning.
The foregoing content reflects the opinions of Liz Behlke and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.