Financial advisors play a role in investing by offering guidance on strategies, risk levels, and account choices that may align with a person’s financial situation. While approaches vary, advisors may help clients understand different investment options, build portfolios, and stay informed about market changes.
Investing may feel complex, especially if you’re new to it. Many people turn to financial advisors for support in making decisions and organizing their long-term approach.
Below, we’ll look at how advisors may help with investing, including both strategy and account-related considerations.
How Financial Advisors May Support Investment Decisions
Financial advisors help clients create a strategy for investing that fits their financial situation and retirement goals. This includes conversations about risk tolerance, investment timelines, and account types.
Some advisors use planning tools and research to build portfolios that combine different asset classes. Others may focus on helping clients understand the impact of inflation, taxes, and broader economic changes on their investments.
Here are some of the ways advisors support investing:
- Explaining investment basics, such as stocks, bonds, and funds
- Building portfolios based on a client’s risk tolerance and goals
- Adjusting investments as life circumstances or markets shift
- Providing information about retirement accounts and other tax-advantaged options
Investment Accounts and Advisor Involvement
Financial advisors may also guide clients through the different types of accounts available for investing. Each account type has its own rules for contributions, withdrawals, and tax treatment.
For example, some people invest through employer-sponsored retirement plans like 401(k)s, while others use IRAs or brokerage accounts. An advisor can explain how these accounts differ and what role they may play in a client’s overall financial picture.
Contact Vantage Point today to learn more about how our team approaches investing and how we can help you live retirement boldly and on your terms.
FAQs
1. What is risk tolerance?
Risk tolerance is your ability and willingness to handle fluctuations in the value of your investments. It reflects both your financial capacity to absorb potential losses and your emotional comfort with market volatility over time.
2. Can financial advisors pick investments for me?
Some advisors may offer specific recommendations, while others provide education and guidance.
3. Do financial advisors only work with wealthy people?
No. Financial advisors may work with people at different income levels, depending on their services.
4. How often should I review my investments?
Many people review investments annually, though advisors may suggest more frequent check-ins during life changes or market shifts.
Investment advisory services are offered through Vantage Point Financial, a registered investment adviser. Registration with any regulatory body does not imply any particular level of skill. This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Working with a financial planner does not ensure financial success or prevent loss. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The scenarios presented are hypothetical and are intended for illustrative purposes only. They do not reflect actual client results and are not guarantees of future outcomes. Individual results will vary. Certain financial strategies may offer tax advantages, but outcomes depend on individual circumstances and are subject to change due to tax laws and other external factors. Vantage Point Financial does not provide legal or tax advice. Consult a tax professional. Retirement outcomes depend on a variety of factors, including individual savings behavior, market performance, health events, and other considerations. Certain statements herein may reflect the firm’s current views, expectations, or beliefs, which are subject to change without notice. For additional information about our services, fees, and disclosures, please refer to our Form ADV Part 2A, available at https://vantage-point.mwdevsite.com or upon request at no cost.
