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Why a Long-Term Relationship with Your Advisor Can Help You Build Wealth

retirement, financial advisor San Antonio Jul 21st, 2020 by: Darryl Lyons

The advent of new technology has introduced a whole new world of tools to the everyday investor. However, today’s newfound investing power may also be a curse.

Many DIY investors feel confident with the amount of online assistance available to them – with robo-advisors, retirement calculators and trading opportunities right from your Smartphone, is it worth hiring a financial advisor and working with a retirement planning group? The reality is, you can still make bad investment decisions. There’s no online tool that prevents you from making an emotional decision. Lacking a full understanding of the markets can destroy your portfolio.

Unfortunately, many people found this out the hard way, as they made decisions based on fear stemming from the Coronavirus pandemic.

What can help you position yourself to build generational wealth is to enlist a financial advisor and reap the benefits of a long-term relationship.

It’s estimated that 99 percent of Americans don’t use a financial advisor, and with current technology, some may think the traditional financial advisor relationship is obsolete. In truth, a relationship with a human financial advisor is more important than ever.

 

Is It Worth Hiring a Financial Advisor?

A long-term relationship with your financial advisor and retirement planning group helps ensure that your portfolio is designed to your needs right off the bat. The average investor says they’re investing “to make money.” While this is true, a financial advisor can help you articulate and prioritize your financial goals fully. From college savings to retirement planning, clearly defined financial goals have a significantly better chance of being reached.

A financial advisor can also help you maximize your finances at any income level. Of course, your income is very significant to your financial health, but salary isn’t everything. Advisors can help you understand and craft a budget and savings routine that works for you and help you establish the right tax strategies, one of your primary vehicles to reach your wealth building goals.

The national retirement age is scheduled to increase to 67, showing that your wealth building strategy has to go farther than simply relying on wage increases. It’s crucial to have a comprehensive financial plan and a financial advisor you can trust.

 

Ready to take your financial plan to the next level? Contact PAX Financial Group to see how we can help.

 

Start on the Right Foot with a Solid Financial Plan

A strong relationship with a financial advisor starts with a discovery conversation. At PAX Financial Group, we look at your full financial picture, including assets, liabilities and your budget. We get to know you, learn about your financial goals and help determine a suitable time horizon for each of your goals.

Most importantly, we learn your comfort level regarding risk. Risk is critical to developing a portfolio that’s truly right for you.

 

Getting a Handle on Portfolio Risk and Time Horizons

Usually, if an investor wants to be aggressive, their portfolio will have a higher proportion of stocks. Conversely, when investors are nervous about the stock market and fear that stocks will decline, they lean toward bond investments, which are typically seen as a conservative, “safe haven” category. Your time horizon for a particular financial goal heavily influences your risk level as well.

For example, if you plan to retire in two years, your investments may need a more conservative leaning. Should markets decline within that two-year period, an aggressive portfolio likely won’t enough have time to grow and recover before you sell the investments and withdraw your money.

If you are planning to retire in 10 years or more, you may want your retirement portfolio to be invested more aggressively. It’s important to review your portfolio at least once a year. Your risk level may change as you get closer to retirement. Advisors manage this timing for you.

 

Portfolio Protection and Peace of Mind

One of the biggest benefits of having a long-term relationship with a financial advisor you trust is having a dedicated professional to watch and manage your portfolio for you. When a financial advisor understands your situation, your goals, your concerns and your income streams, he or she can help create a plan that works for you. Financial planning is not a one-size-fits-all solution.

A financial advisor can help take the emotion out of investing and can watch and manage your portfolio daily. This keeps your portfolio aligned with your financial goals and works to keep you on a wealth-building trajectory. A long-term relationship with your financial advisor is critical to your investing success.

 

An Ally for Life’s Changes

Planning is the foundation of great portfolios. Any time your financial priorities change, your portfolio should also be reviewed and potentially updated. Often, the biggest changes to your financial goals come from major life events, such as the birth of a child, an unplanned financial expense or the death of a loved one.

If you have a financial advisor during a major life event, you have a significant ally to restructure your financial plan and portfolio. This is where a long-term relationship works in your favor. A financial advisor can guide you through the what-ifs of your situation, avoid major pitfalls and complete the heavy lifting needed for account and investment management.

 

Retirement Planning

Retirement planning is an important part of a comprehensive financial plan. Having your financial advisor on your retirement planning team who understands your lifestyle can help you reach your goals.

When you have a long-term relationship with your financial advisor, he or she knows your long-term goals and can help you adjust accordingly. Your financial advisor can review your current investments, and help avoid unnecessary financial mistakes in the future. A relationship with a financial advisor can help you throughout all stages of your financial life, helping you build wealth and secure your financial success.

If you’re looking for a financial advisor to help you plan for the future, contact us. We’re here to help.

Retirement Guide - PAX Financial

This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such.

 

Darryl Lyons

Darryl Lyons

CEO and co-founder of the PAX Financial Group, Darryl Lyons has been a licensed professional in the financial services industry since 1999. A lifelong Texan, Darryl began his career in the financial sector just one day removed from earning his bachelor’s degree in corporate financial management and accounting at St. Mary’s University. Throughout his career, he has won awards for recruiting and development from Fortune 100 companies. In January 2007, he chose to begin and develop his independent practice. He joined Andres Gutierrez and Joseph Schuetze to form the PAX Financial Group. Darryl also served as the Chairman for Brooks Development Authority. Shortly after his service, Mayor Julian Castro, named a park “The Darryl W Lyons Park” in honor of his service. He was named to the 2010 San Antonio Business Journal’s “40 Under 40 Rising Stars,” which honors people making a difference in business and in the community.