Managing Your Financial Future

6 January 2020
 Categories: , Blog

Making smart financial choices can be one of the most important things that you do for your future. To help you make the right choices for your current financial needs and future goals, there are fee-based financial planning professionals that can provide you with guidance and advice throughout this process.

What Can Make Fee-Based Financial Planning Services The Right Choice For You?

Individuals assume that performance-based fee structures are what every financial planning service will utilize for charging clients. While this is one of the most common types of fee structures, there are many professionals that will operate on a flat fee. These services can be ideal for those that want to pursue a more conservative investment plan. Conversely, individuals that are wanting to take a more aggressive approach to their finances may wish to opt for a service that utilizes a performance-based fee structure. These professionals will be incentivized to be more aggressive in their recommendations while remaining thoughtful and careful in their assessments.

Will You Have Much Say Over The Investments That Are Made?

One assumption about working with a financial planner is that they will take control of their clients' finances. However, this is far from the case, and the client will typically retain as much decision-making power as they wish. Generally, these professionals will not make a financial move or investment without first consulting with the client and receiving approval. Some individuals may wish to give these professionals full control over their finances, and if this is the case for you, it may be necessary to find a full-service and fully managed financial service.

Should Your Investment Strategy Change Over Time?

A major challenge with effectively managing your finances will be changing and adjusting your strategy over the course of your life. For individuals that are younger, it can be advisable to pursue a slightly more aggressive investment strategy. This is due to the reality that these individuals will have longer to recover any losses that are incurred by short-term market volatility. Conversely, those that are older and approaching their retirement age may need a more conservative approach so that they can reduce their risk of major financial losses as they may not have the time to recover major losses from risky investments. An experienced financial advisor can assist individuals with making these changes and adjustments as they progress through life so that their financial strategy is optimized for their current needs and goals.