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What Does a Financial Advisor Do?

Many people wonder what a financial advisor does and if it is worth it. In general, these professionals help you make decisions about what you should do with your money. This may include investments or financial products that will benefit your nest egg over the long term.


A financial advisor is your financial planning partner. Let’s say you want to retire in 10 years, or send your child to college. To accomplish your goals, you may need a skilled professional with the right licenses to help male these plans a reality, and this is where a financial advisor comes in.


Together, you and your advisor will cover many topics including the amount of money you should save for retirement, the type of accounts you need to set up and when, the kinds of insurance you should have (including long-term care, term life, disability, Medicare, etc), and estate and tax planning.


Your financial advisor should also be your educator. They will help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics, where the financial advisor can sit you down, ensure you understand the topic and perhaps send you away with materials to review in depth. As you advance in your knowledge, your advisor will assist you in understanding complex investment, insurance and tax matters to get you where you need to be.


Services Provided by Financial Advisors

  • Investment advice: Financial advisors offer advice on those investments that fit your style, goals, and risk tolerance and goals, developing an investing strategy and making adjustments as needed.

  • Debt management: Financial advisors can create strategies to help you pay down your debt and avoid debt in the future.

  • Budgeting: A financial advisor will provide tips and strategies to create a budget that helps you meet your goals in the short and the long term.

  • Saving for college: Part of a budgeting strategy may include strategies that help you pay for higher education.

  • Retirement planning: Likewise, a financial advisor will create a saving plan crafted to your specific needs as you head into retirement.

  • Estate planning: Financial advisors will create a plan and help you identify the people or organizations you want to receive your legacy after you die.

  • Long-term healthcare and insurance: A financial advisor will provide you with the best long-term solutions and insurance options that fit your budget.

  • Tax planning: Financial Advisor Tax Planning Services include:

    • Tax return preparation.

    • Maximizing tax deductions.

    • Scheduling tax-loss harvesting security sales, usually around year-end.

    • Ensuring the best use of the capital gains tax rates.

    • Planning to minimize taxes in retirement.

Anyone can work with a financial advisor at any age and at any stage of life. You don’t have to have a high net worth, you just have to find an advisor suited to your situation.


The decision to enlist professional help with your finances is a highly personal one, but any time you’re feeling overwhelmed, confused, stressed out, or scared by your financial situation, it may be a good time to look for a financial advisor. Better yet, finding one when you are feeling financially secure can help boost you to the next level and they will be there should any stressors arise. They can help ensure that you are on the right track and may offer possible improvements or suggestions to your plan that you might not have thought of to help you achieve your goals.


Reach out to us at Penny Lane Financial today for help with your financial plan. Call us at (253) 327-1177 or send us an email at vip@pennylanefinancial.com.



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