Whether you're launching your career, navigating a major life change, or preparing for retirement, it's never too early or too late to benefit from working with a financial advisor.
But what exactly does a financial advisor do? More importantly, what don't they do?
This article outlines the facts with no fluff and no hype so you can make an informed decision about how to use professional financial planning to your advantage.
Financial planning is the process of evaluating your entire financial picture and creating a coordinated strategy to help you meet your short- and long-term goals. It covers every area of your financial life, including:
Every financial decision you make falls into one of these six categories. A qualified financial planner helps you navigate them in a way that aligns with your values, risk tolerance, and lifestyle goals.
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Investors who follow a written financial plan are significantly more likely to achieve their goals compared to those who rely on gut feelings or react to market news.
A strategic plan doesn't just cover retirement planning; it includes tax planning, investment allocation, insurance needs, charitable giving, and estate planning considerations.
A good advisor acts as a filter, helping you distinguish between noise and signal. With constant headlines about inflation, interest rates, elections, or geopolitical tension, it's easy to feel overwhelmed.
Your financial planner can help you focus on what actually affects your portfolio and your goals — not just what's trending on social media or financial news sites.
"Fear has a greater grasp on human action than does the impressive weight of historical evidence." – Peter Bernstein
Emotions are the enemy of sound financial decision-making. During uncertain times — COVID-19, inflation spikes, market corrections — many investors panic. A financial planner acts as your behavioral coach, helping you stay disciplined and avoid costly mistakes driven by fear or FOMO.
Whether you're figuring out how to minimize taxes on Restricted Stock Units (RSUs), analyzing cash flow during a medical fellowship, or optimizing a portfolio for inflation protection, your planner helps you understand the why behind every recommendation.
No one, not even the so-called experts, can consistently forecast short-term market movements or economic conditions.
"The only function of economic forecasting is to make astrology look respectable." – John Kenneth Galbraith
As shocking as the quote above from a mid-twentieth-century economist is, the economy cannot be consistently forecasted. Market volatility is normal. Your plan shouldn't hinge on predictions but rather on a disciplined, long-term strategy designed to weather all types of market environments.
Past performance is not only not a guarantee of future results—it may not even be a useful indicator. No advisor can predict which mutual fund or stock will outperform over the next quarter or year.
"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves." – Peter Lynch
Financial planning is about managing risk, not eliminating it. Market, inflation, tax, and longevity risks are real. A comprehensive plan is designed to reduce exposure to unnecessary risk while positioning you for long-term growth.
Here are some of the goals we help clients tackle at various stages of life:
These goals don't have to be complicated, but they do need to be clearly defined. A goal without a plan is just a wish.
| What Financial Planners Can Do | What Financial Planners Can't Do |
| Build a comprehensive financial strategy | Predict short-term market movements |
| Provide unbiased, personalized advice | Time the market |
| Offer behavioral coaching and clarity | Guarantee investment returns |
| Help you make tax-efficient decisions | Eliminate all financial risk |
Whether you're earning your first paycheck or reevaluating your withdrawal strategy in retirement, the right advisor helps bring clarity to complexity and confidence to your decisions.
Have questions about how financial planning fits into your life? Reach out to start a conversation.
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As the Director of Planning & Strategy for Spaugh Dameron Tenny, Jordan applies his academic and practical experience in the creation and maintenance of the firm’s financial plans, as well as coordinating research efforts for products and strategies that may benefit clients. Originally from Canada, Jordan came to Charlotte on a golf scholarship where he attended Queens University of Charlotte. In addition, Jordan has a Master’s degree in Wealth and Trust Management.
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