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Having a Professional On Your Side is a Good Investment

The obvious assumption is that you are already working with a Hefren-Tillotson financial advisor. Congratulations.

When you made the decision to seek help from a financial advisor, you might have either been managing your own investments or working with an advisor elsewhere. The point is, at least someone was managing your investments, whether right, wrong or indifferent, and that put you a step ahead of a lot of others.

Now, who are the “others?” They are family or friends who do not have professional management. If you asked them why not, they might answer: “I don’t really think I need it.”

Prior to working with an advisor, did you also say that? What do you think about it now?

A Lot of People Think Like That

Doing what you’ve always done will get you what you’ve always gotten. It is not uncommon for people to avoid changes or to not take chances. It is also not uncommon for people to be fearful of investing their money. So much so, the Financial Industry Regulatory Authority (FINRA) did a study in 2021 called, “Financial Anxiety and Stress Among U.S. Households,” where they determined that people who experience long-term financial anxiety and stress are less likely to plan for retirement.

Researchers found that financial stress and anxiety are highly linked to low levels of financial literacy, problematic financial behaviors and decreased financial security.

Is there a remedy? “Financial therapy,” says Celia Hughes, a certified financial therapist. “There’s a real gap between emotional health and financial help and money.” The Financial Therapy Association was established in 2010 to help improve an investor’s thoughts, feelings and behaviors around money.

When it comes to easing fears, nothing replaces the confidence you feel when you work with a knowledgeable and trusted financial advisor who has the value-added quality of their firm and the professional teams that support him or her. You don’t have that with:

(1) Passive investing: a viable alternative to those who prefer a hands-off approach, to where there is no advisor and no advisor-client interaction

(2) Robo-advisor investing: where the online application provides automated financial guidance and services

(3) Pre-packaged mutual fund portfolios: that you research, select and manage 

(4) Self-Directed Brokerage Accounts: A survey found that 52 percent of investors use these. They pick their preferred investments, including mutual funds, ETFs, stocks, bonds and other asset classes, and carry out their own investment strategy.

The COVID-19 pandemic brought on a slew of self-directed investors. Typically, investors who like to trade at higher frequency are self-directed investors.

Managing All Phases of Your Life Can Be Quite Challenging

Why go it alone? Financial advisors are not hard to find. The Bureau of Labor Statistics estimates there are more than 275,000 personal financial advisors in the United States. Financial advisors compete with hundreds of thousands of other advisors and robo-advisors for clients.

But from the client’s perspective, there is nothing like having a trusted advisor, friend and partner to talk to about the best courses of action for finances, family and futures. Having an advisor that shares your vision, has the willingness to learn new things, and has the honesty, integrity and trustworthiness you desire is certainly worth paying for, isn’t it?

“People benefit when they have a partner and a safety net,” says Justin Grubisha, a CERTIFIED FINANCIAL PLANNER™ practitioner and Chartered Life Underwriter® at Hefren-Tillotson.

“This is especially true when one spouse handles the finances. If that person passes away or becomes incapacitated, a significant amount of responsibility and decision-making will land on the other,” said Grubisha. “That’s why a true client-advisor partnership is so important, as a safety net, to where there is an existing relationship with a trusted advisor that can be called upon.”

There are Always Risks to Contend With

Risk is inherent in all investments. There are factors that neither you nor your advisor can control—like high inflation or market downturn. Your advisor is there to remind and advise you that the more volatile an investment is, the more often it swings in value. If you take no calculated chances, you run the risk of coming out short.

It makes sense to stay informed about market conditions and economic trends, and to make adjustments accordingly … something you might not do, or be aware of doing, without the professional guidance of your financial advisor.

When you keep your financial goals in perspective and stick with your investment strategy, as they are spelled out clearly in your MASTERPLAN®, it means you keep a long-term perspective that enables you to stay the course even when markets are declining, because you face more challenges to meeting your financial goals than ever before.

Building a nest egg for retirement has always been a motivating factor behind investing. Why miss out by not having a financial advisor’s experience, reputation, expertise and compatibility? Expert advice can make investing easier—and more profitable.

So if you need help sorting out what is best for you, your family and your futures, contact us here at Hefren-Tillotson today. We would be happy to help.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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