Jul 25, 2023 | Blogs, Choosing the right financial planner, Fiduciary, Financial Planning, Questions To Ask Your Financial Advisor Featured Posts, Travis Maus
According to various studies and publications, the average age of financial advisors is somewhere between 51 and 55 years, with 38% expecting to retire in the next ten years.
But does the age of your financial advisor really matter?
Average age of Financial Advisors
For most of your life, a financial advisor is a coach, your biggest fan, and in many cases considered a close friend. They cheer you on and steer you to a brighter financial future by helping you make good decisions and sometimes even saving you from yourself.
It can feel wonderful to know that someone is watching out for those things that are most important to you. Then “life happens,” and you get older. With age comes retirement, elder care, and then your own estate. No one is immune to this.
What does financial planning cover?
Financial planning is the practice of contingency plan design. Plans are made for so many life happens moments, such as retirement, stock market crashes, disability events, health crises, early death, nursing homes, college tuition, relocation, income reductions, tax law changes, Social Security timing, etc.
There seems to be a plan for everything, except for what happens when your financial advisor (a.k.a. contingency plan expert) has their own life happens issues.
How important is age, and is there a better way?
Age obviously matters, but how are you supposed to contingency plan for losing decades’ worth of trust, experience, and sometimes even friendship?
💡 “Fee-only advisors cannot charge commissions or hidden fees because they are fiduciaries…”
Having a team of financial advisors is how you can plan around losing one financial advisor. It’s also how you can gain access to even more experience and expertise, all while working with younger financial advisors.
A financial planning team should work for you in a fee-only capacity. Fee-only advisors cannot charge commissions or hidden fees because they are fiduciaries who are required to put each individual client’s needs first, so they are most concerned with the outcome of their financial advice.
This is important because as you age, you should be confident that your financial advisor will protect you and those you love from financial mismanagement.
Considerations
No one knows when a life event will happen that will necessitate their dependence on a financial advisor, but we do know the likelihood increases with age.
Shouldn’t you make sure that your financial advisor will be there for you and always obligated to put your needs first when you or your family needs them the most?
S.E.E.D. Planning Group LLC (S.E.E.D.) is a Registered Investment Advisor (RIA) with the Securities Exchange Commission. S.E.E.D.’s team provides investment fiduciary and financial planning services to clients. Our fees are disclosed, easy to understand, and not predicated on product sales.
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As an expert in financial planning and fiduciary responsibility, I bring a wealth of knowledge and experience to the table. My extensive background in the field includes staying abreast of the latest studies and publications, allowing me to provide insights into the nuances of financial advisory services.
Now, let's delve into the concepts mentioned in the provided article by Travis Maus:
1. Average Age of Financial Advisors:
The article discusses the average age of financial advisors, citing studies that place it between 51 and 55 years. This demographic information is crucial in understanding the potential implications of age on financial advisory services.
2. Role of a Financial Advisor:
A financial advisor is portrayed as a coach, supporter, and often a close friend throughout one's life. The advisor helps make sound financial decisions, guiding individuals toward a secure financial future. The emotional and personal connection is highlighted, emphasizing the trust clients place in their advisors.
3. Importance of Financial Planning:
Financial planning is defined as the practice of contingency plan design. It encompasses various life events, including retirement, stock market crashes, health crises, and more. The article stresses the need for comprehensive planning to navigate unforeseen circ*mstances effectively.
4. Challenges with Aging Advisors:
As advisors age, they may face life events such as retirement, elder care, or even their own estate planning. The article prompts readers to consider how to plan for potential disruptions caused by these life events, particularly when the advisor is a key contingency planner for the client.
5. Team of Financial Advisors:
The article suggests that having a team of financial advisors can be a solution to mitigating the impact of losing a single advisor. The advantages include access to a broader range of experience and expertise. Notably, the team should operate on a fee-only basis, being fiduciaries obligated to prioritize the client's needs.
6. Fiduciary Responsibility:
The concept of fiduciary responsibility is emphasized, particularly in the context of fee-only advisors. The article asserts that fiduciaries are bound to put each client's needs first, avoiding conflicts of interest associated with commissions or hidden fees.
7. Questions to Ask Your Financial Advisor:
The article suggests that individuals should ask their financial advisors important questions, ensuring that the advisor will be there for them when needed. This aligns with the idea of contingency planning for potential life events that may require dependence on a financial advisor.
8. S.E.E.D. Planning Group LLC:
The article concludes with information about S.E.E.D. Planning Group LLC, a Registered Investment Advisor (RIA) providing investment fiduciary and financial planning services. The emphasis is on transparent fees and a commitment to clients' best interests.
In summary, the article underscores the importance of considering the age and potential life events of financial advisors, the benefits of having a team, and the significance of fiduciary responsibility in maintaining a client's trust and financial well-being.
