The Problem is we are in the DIY generation – my own home repairs, car repairs, computer coding, my self diagnosis of medical conditions. To our topic – my own investing, which somehow morphs into my own financial planning. According to the CFP Board, the use of financial advisors has increased significantly – from 28% in 2010 to 40% in 2015. Still, according to Society of Actuaries, only 48% of pre-retirees and 55% of retirees consult with a financial advisor or planner to help with financial planning or retirement planning.

 

WHY? We’ve heard all of the reasons:

• I “should” be able to do it
• I should be able to do it, so I shouldn’t pay for it
• I certainly don’t want to pay too much
• I don’t know how to pick or work with a financial planner

 

However, people who have advisors are more likely to achieve their goals:

• 70% of people who work with a financial advisor or financial planner (and presumably have a financial plan) are on track or ahead in saving for retirement. That compares with 33% of those who do not go with an advisor.

 

5 things an advisor does for you:

1. Can you keep your emotions out of it? This is your money, your future, your legacy. People make the biggest financial mistakes when they panic and sell low in a bad market or get greedy and buy high in a good market. And who’s going to stop you if you decide to take $10,000 out of your 401(k) to go to Europe on a whim? (And if it’s not about who’s going to stop you, who’s at least going to make a face and ask you if that’s really such a good idea and discuss the pros and cons of your decision?) If you’re on your own, you won’t have someone to talk you through those impulsive decisions.

 

1. Do you have the time? This isn’t just about talking to your brother-in-law and making some stock picks. To make good choices, you’ll need to do lots of research and read those prospectuses. Every. Single. Time. Is your spouse going to nag you when you get home from work, or give you a quick kiss on the cheek and disappear into the world of finance on your laptop? And what will your spouse do if something happens to you? Here’s a suggestion: If you really enjoy doing your own financial legwork, why not consider keeping control of 10% of your investments and letting an advisor take care of the rest? You’ll still get the mental stimulation, you can brag about your successes, but any mistakes you make won’t have as large of an impact on your overall retirement. (Another plus: Most professionals probably won’t mind discussing your do-it-yourself piece and bouncing around ideas if they’re managing the rest of your portfolio.)

 

1. You might not be as smart as you think you are. If you’ve been investing successfully on your own for the past few years, that’s great, but just about anybody can do well in a bull market. The tough part comes when there’s a correction. (Note: That’s when, not if.) How are you protecting yourself for the downside? Do you even know about the products that are out there to help safeguard your income stream? A good financial advisor attends classes and stays up to date on financial strategies, tax law changes and more. He also has years of experience. He’s seen hundreds of people come through his office door, and he’s probably helped several clients with problems similar to yours.

 

1. Every quarterback needs a coach. Tom Brady led the Patriots to a Super Bowl victory  but he had a whole lot of people on the sidelines helping him make those plays. When it comes to your financial future, don’t you want to have a team of coaches behind you? Your financial advisor can work with others — tax experts, estate attorneys, insurance professionals — to build a plan that helps you meet your goals. You’ll still be the MVP — but they’ll be there to support you on offense and defense to get you across the goal line.

 

1. It’s only going to get more complicated. Saving money was pretty easy when you were a kid. You just dropped your quarters into a piggy bank. Then came student loans and credit, and even a mortgage as well as the costs that came with having kids- and yet, all that doesn’t compare to planning for retirement. You might have been fantastic at the accumulation phase of your financial life, but the distribution and preservation phase can be a scary place to negotiate on your own. Sometimes, it’s just knowing what order to tap into your income streams that makes all the difference. It’s about understanding your risk tolerance as you get older vs. when you were young and fearless with your money. Even if you managed to build a pretty nice egg nest all by yourself, you may need assistance when it comes to making it last for 20 or 30 years in retirement.

To explore working with Wayne Firebaugh to fireproof your money, please call 855-WAYNE KNOWS or check out at fireproofyourmoney.com.