On sunny afternoons, my wife and I enjoy finding a patio at a local brewery to enjoy a cold beverage and play card games. Our favorite spot is Living The Dream Brewing in Highlands Ranch (Drink Local!). When there, I suggest trying one of their well-balanced IPAs, a smooth vanilla cream ale or one of their delicious fruit infused beers; you really can’t go wrong.
In addition to enjoying the tasty beers, sunshine and good company, whenever we visit I find inspiration. On every pint glass you will find a quote from Henry David Thoreau that says, “Go confidently in the direction of your dreams. Live the life you have imagined”. Those words cross my mind often, especially when it comes to envisioning the future.
As a financial advisor, I spend a great deal of time contemplating the future and helping clients define, as well as work toward, their ideal future. For anyone to achieve their dreams, there are three crucial elements. First, you need to know what your desired future looks like. Second, you need to have a plan for working towards that future and the ability to adjust the plan as life changes. Finally, you need an advisor to help you with the first two elements and countless other factors along the way.
Think about all the areas of your life in which a professional expert can offer you confidence, free up your time, and earn their fee. For example, you could choose to change your own oil, complete a kitchen renovation yourself, or self-diagnose a health issue on WebMD (yikes!). But do you complete all those tasks yourself? Of course not! Finding a reliable mechanic, a well-respected contractor and, of course, a trusted doctor gives you peace of mind, saves you time (and even money) for the services provided. Why should handling your financial life be any different?
Have you ever wondered what the value of working with a financial advisor actually is? To find out, I suggest reviewing the Vanguard study that seeks to quantify that value. According to Vanguard, who began studying this concept in 2001, advisors can add about 3% in net returns for their clients. Working with an advisor can add value in asset location, spending strategy, cost effective implementation, rebalancing and behavioral coaching. Interestingly, behavioral coaching is where Vanguard suggests advisors can add the most value. The importance of the last point cannot be overstated, so let’s talk about how an advisor can actually help you.
I would wager that when most people think of a financial advisor, their mind jumps to “the market”, someone who picks investments or, heaven forbid, someone who claims to know how to “beat the market”. Spoiler alert: no one actually knows what the market will do one day to the next, which investment is going to perform best this year or how to “beat the market”. Anyone who tries to convince you otherwise is lying. I would also wager those factors do not matter nearly as much to most people’s financial success as they think.
Don’t get me wrong; selecting and managing an intelligent and appropriate investment strategy for you absolutely is a critical way that a financial advisor can help you. There is no shortage of investment products and strategies available today, but which one is best for you? That is where a trusted advisor comes in and adds true value. Your advisor can then manage the best strategy for you by rebalancing, placing investments in accounts to manage tax liability, and periodically reviewing the strategy to make sure it remains the best for you.
Beyond the management of your investment portfolio, we start to see the real value of a financial advisor. For example, an advisor’s expertise allows them to help you by discovering your ideal future, increasing Social Security income, deciding between a lump sum or annuity from your pension, defining the appropriate level and type of insurance you need to manage risks in your life, setting savings goals and suggesting the right accounts to save into, planning for large purchases, meeting desired charitable giving and legacy goals…the list goes on and on.
I mentioned before that “behavioral counseling” is one of the ways advisors can add the most value. Simply put, an advisor can help keep you on track to meet your financial goals by helping you avoid by pouring money into that “can’t miss” investment (FOMO!) or bad decisions to sell your investment portfolio when you are fearful of a wiggly market due to the risk event du jour. You will likely experience either or both emotions more than once in your lifetime as an investor. Working with an advisor to avoid the emotional decisions and focus you on what is important to your financial plan can add the most value.
I love being a financial advisor and the most rewarding part of how I help people. The work I do allows my clients to go confidently in the direction of their dreams and live the life they have imagined. If you have any questions about your financial life or are curious to learn more about how a financial advisor might help you, I welcome a conversation. Cheers!
Hello! I am Danny Kellogg, an LPL Financial Advisor with Prosperion Financial Advisors. The best part about my job is using my experience and education to help clients discover how their financial resources can serve them. To deepen my knowledge and demonstrate my dedication to serving clients at the highest level, I became a CERTIFIED FINANCIAL PLANNER® and Retirement Income Certified Professional®. My wife Elizabeth and I are both proud Colorado natives. We live in Centennial, CO with our daughter Libby and golden retriever Aggie. I am an avid Colorado sports fan who enjoys cheering on the Rockies, Broncos, Avalanche, Nuggets and Colorado State University Rams. When I am not helping clients, I enjoy spending time with my family and playing golf.
https://prosperion.us/wp-content/uploads/2021/06/craft-brewery.jpg7251500Danny Kellogghttps://prosperion.us/wp-content/uploads/2017/02/whitelogosized.pngDanny Kellogg2021-06-25 11:08:502021-06-25 11:08:50Craft Beer & Why You Need a Financial Advisor
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