How a Financial Advisor Can Help You (Finally) Make Sense of Your Money

You’re serious about saving, but how can you turn that 50k into 500k before you hit your big 50th b-day? An advisor might just be the answer.

Advisors don’t just help you invest your money anymore; often advisors are referred to as “financial planners” nowadays due to their wide array of services. Here are our top five reasons people work with financial advisors – let’s dive in. 

5 Ways Financial Advisors Help Their Clients

Financial advisors have tools and expertise to offer you in your financial planning journey, from retirement planning to tax optimization and everything in between. Today, we want to talk about the five most popular reasons people choose to work with financial advisors.

1. Save toward goals

You’ve got goals, ambitions and dreams, right? Maybe you’ve always wanted to climb Mount Everest, or open your own pet grooming business on wheels. Or perhaps your dream is as simple as a nice home for you and your ten dogs.

Whatever your goals are, you’re probably going to need some money to get there – and a financial advisor can help. 

With inflation rates at historical highs, you’re likely noticing that your cash isn’t stretching quite as far as it once did. In that same vein, the money stacked away in your savings account is likely also losing value. Over time, inflation rates outpace the interest rate your savings are earning – making it hard to stay ahead financially or to reach your long-term goals. 

The average savings account in a traditional bank earns a measly 0.1%. As of June of 2022, the national inflation rate is 9.1%. Those dollars in your savings account don’t stand a chance. In contrast, the S&P 500 boasts an average annual return of about 10.5%.

The numbers don’t lie: Investing your money is a powerful weapon you can use to combat inflation. From outlining your savings plans to investing responsibly, a financial advisor has the know-how to get you from point A to point B. 

2. Find investment opportunities aligned with risk tolerance

There’s a whole host of investment options out there for you to explore: stocks, bonds, real estate, art, crypto, even wines. It can be tough to know where to put your money to optimize your portfolio. 

In addition to what you invest in, you should also consider something called “risk tolerance.” Your risk tolerance is a delicate balance between how much money you hope to gain in a certain period of time and the amount of money you’re willing to risk losing along the way. 

For example, someone with a higher risk tolerance and a long-term goal might have a portfolio based heavily in stocks. In contrast, a low-risk investor would likely invest in more stable securities like bonds. Most people probably land somewhere in the middle with a mix of both. 

Financial advisors have the technical and real-world experience to help you decide which investment opportunities best align with both your goals and your risk tolerance. 

3. Create an estate plan

A lot of financial planning revolves around your personal goals like a house or retirement. But you also need to decide what to do with your money after you pass away. Your money doesn’t just disappear after you’re gone. 

Will you leave it to your children? Donate a portion to charity? Would you like to just be buried with all that cash and call it a day?

The entire process of planning out what will happen to assets after your death is called estate planning. Financial advisors can work closely with your lawyer to ensure your financial plan and your estate plan match up. 

If you have specific goals, questions or requests concerning your estate plan, you’ll probably want to connect with a financial advisor or other expert to help you navigate the legal processes. 

4. Optimize taxes

There’s more to tax planning than just filing your return every spring. In fact, optimizing your taxes can make a huge difference in your wallet for years to come. 

Where and how you spend and invest your money can impact your income bracket and thus your tax withholdings. A financial planner can help you look long term to make the most of your taxes both now and in the future. Just make sure to find an advisor that specifically offers tax planning services, as not all advisors do.

5. Find proper insurance 

Lastly, a financial advisor can work with you to make sure your money and other assets are properly insured. Just like you purchase insurance for your home or car, you’ll also want to find a solid insurance plan for your most valuable assets.

Likewise, an advisor can also help you explore life insurance policies to help protect your loved ones in the event of your passing or incapacitation. 

A great financial advisor works with you to explore how your finances can support all your goals, saving you time and money as you create a plan for the life you want to live.

Connect with an Advisor in Lasso

With Lasso, you can filter and browse hundreds of financial advisors totally anonymously (and free of charge). Click here to download the Lasso app and get started today. 


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