Filbrandt Reports

5 Reasons You May Need a Financial Adviser

Volume 17, Issue 7



Executive Summary

In this report, you will learn:

  • Professional investment expertise may reduce the missteps that can be associated with do-it-yourself planning
  • Universities typically have hundreds of investment options
  • An adviser can create a unified portfolio so you see all of your accounts in one statement
  • Advisers who work under the fiduciary standard are required to put your interests first
  • The effects of claiming Social Security before or later than age 66

Many university professionals have a need for a financial adviser for the same reason they need an auto mechanic.

You may enjoy driving and looking at cars, but do you know how to keep them operating in the most efficient and cost-effective manner? Most people leave that to a professional.

Likewise, a professional financial adviser has the training, knowledge and certifications to ensure your assets are properly positioned to meet your goals.

This report outlines five important benefits of having a financial adviser.

1. Professional Expertise

Professionals who put in years of work to earn credentials know how difficult it is to achieve a high level of knowledge and exper-ience. People in academia understand this as well as anyone.

It's no less of a challenge to be successful in managing financial assets, so why would you attempt to do it on your own?

Also consider that when you’re doing any task — professional or otherwise — there is the possibility of emotions interfering with solid judgment.

Surgeons almost never perform surgery on family members for that reason. A financial professional can point out emotional ties that may be counterproductive or even harmful to your future.


2. Hundreds of Investment Choices

Another challenge for professors is keeping track of all of their accounts. It's harder to do than it was even 10 years ago because there are more choices available, and there are more custodians. There used to be just one custodian at most universities, known then as TIAA-CREF. Now there are multiple custodians -- TIAA, Fidelity, Vanguard, and others. There are literally hundreds of choices through each of these custodians.


3. Numerous Quarterly Statements

Once you choose the investments, how do you keep track of them? You might have a statement from TIAA, one from Fidelity, one from Vanguard, and more from an outside account with a broker like Merrill Lynch and your bank. You're receiving multiple sets of statements. As many people get closer to retirement and markets are struggling, they get nervous. So having a consolidated statement, which we provide, is important for you to be able to see the “big picture” of your finances.

5 Reasons You May Need a Financial Adviser

4. The Fiduciary Standard

This means that the adviser must place the client’s interests over everyone else’s, even his or her own. Often you will find advisers working under the suitability standard who work for brokerage firms. The suitability standard allows them to sell you the product of the company with which they are affiliated, without going out to the marketplace to search for similar products that might cost you less. This is a big trap. Over the long term, it can mean missing out on the benefits of a specific equity or product you should have been made aware of.


5. The Filbrandt Total Solution

Decisions on investments affect income and estate transfer outcomes. A qualified CFP® professional will help the client achieve the best total solution for investment, retirement income and estate transfers. Our firm offers The Filbrandt Total Solution©, a process that integrates investment, retirement, and estate management services to help university professionals achieve their financial independence.

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Effective financial planning is a fluid process that changes as life circumstances change. We help our clients through major life transitions, including job changes, illnesses, disability, retirement, divorce, and the death of a loved one or spouse.


Volume 18 Issue 7

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