3 Reasons Why a Financial Professional is Better than the Do-It-Yourself Approach

Edward Goldstein |



When it comes to managing your personal finances, paying someone else to decide where to put your money may feel counter-intuitive. After all, who knows and understands your financial needs and goals better than you? Well, the truth is that a financial professional with the appropriate background, experience and credentials is far better suited to the task. It is also extremely important that the planner legally serves as a Fiduciary.

Hiring a financial professional could be one of the best financial moves you make this year. Their utility is far greater than your capacity to manage your own finances, regardless of how well you think your do-it-yourself approach is working. Here are just a few reasons why you should choose a financial advisor like Edward Goldstein, CFP going forward:

Long-Term Planning Support

When it comes to investing your current and future financial resources, the key to success is long-term planning. While you may be able to do this on your own to an extent, only a financial professional can ensure that all your financial moves are well-aligned to your financial goals. In this way, Ed can be a crucial, unbiased resource when planning and executing a retirement savings account.

Emotional Poise and Expertise

Investing your own money in stocks, bonds, or even a retirement plan can be challenging work. A great deal of this challenge, however, arises when the markets turn sour. When this happens, an inexperienced investor might pull out their investment, causing them to lock in their loses. In fact, according to Financial Planning magazine, 33% of Investors over age 65 sold all of their stocks this year. That was a costly mistake based on the 2020 2Q Market Performance.  An experienced financial professional, on the other hand, can practice the emotional poise needed to stay the course through an unexpected downturn. That does not necessarily mean just buy and hold. It means always trying to best manage risk/return propositions. 

A financial professional can also provide you with financial insights that are more than just hype. In other words, they can provide you with advice regarding your investments that are based on their experience and the facts, rather than speculation alone. This can help you chart a more prosperous path forward without incurring nearly as much risk.

Tax Optimization

Regardless of your income or how much you invest, you’ll need to pay taxes on your financial assets each year. Completing taxes for your complex financial assets on your own can take weeks of your time; that is, if you are able to fill out all those forms without making any errors.

A financial professional, by comparison, can help you plan for and complete your financial asset-related taxes without trouble. Also, Ed even goes the extra step of working with the client accountant when requested to help manage Future Tax Liability. Better yet, they can help you complete those forms and submissions correctly on the first try, thus preventing the headache of an audit. Taken together, if your financial advisor has the proper background they could save you enough in taxes to easily pay for their own services.

The Bottom Line

Suffice to say, it’s in your best interest to hire the right financial professional. These trained professionals are able to provide you with invaluable insights that can make the difference when it comes to managing your personal and professional finances. They can also pay for themselves in time, especially when it comes to your savings during tax season.

Don’t wait to hire your own financial professional, though! Lastly, it is also extremely important you fell comfortable with the advisor and they are compatible with you. The best way to measure that is to first have an initial consultation to start the process! These experts are always in high demand, so you should act fast to team up with a skilled financial professional in your area today.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. 

Edward C. Goldstein, CFP®, MBA, President
Financial Life Planning, LLC
10,000 Lincoln Dr. East, Suite 201
Marlton, NJ  08053
Phone: 856-988-5480
Fax: 908-292-1040