Working With a Financial Advisor (2024)

The world of 50 years ago was a lot different than it is today. An individual often worked at the same job all his or her adult life, lived in the same house, and stayed married to the same spouse. In those days, too, one spouse could support a family, paying for college ordinarily didn't require taking out a second mortgage, and people could look forward to retiring on Social Security and possibly a company pension.

Today, your hopes and dreams are no different. Like most people, you probably want to buy a home, put your children through college, and retire with a comfortable income. But the world has become a more complex place, especially when it comes to your finances. You may already be working with financial professionals—an accountant or estate planner, for example—each of whom advises you in a specific area. But if you would like a comprehensive financial plan to help you secure your future, you may benefit from the expertise of a financial advisor.

Services a financial advisor may provide

Even if you feel competent enough to develop a plan of your own, a financial advisor can act as a sounding board for your ideas and help you focus on your goals, using his or her broad knowledge of areas such as estate planning and investments. Specifically, a financial advisor may help you:

Set financial goals
Determine the state of your current financial affairs by reviewing your income, assets, and liabilities, evaluating your insurance coverage and your investment portfolio, assessing your tax obligations, and examining your estate plan
Develop a plan to help meet your financial goals which addresses your current financial weaknesses and builds on your financial strengths
Make recommendations about specific products and services (many advisors are qualified to sell a range of financial products)
Monitor your plan and periodically evaluate its progress
Adjust your plan to help meet your changing financial goals and to accommodate changing investment markets or tax laws

Some misconceptions about financial advisors

Maybe you have reservations about consulting a financial advisor because you're uncertain about what to expect. Here are some common misconceptions about financial advisors, and the truth behind them:

Most people don't need financial advisors—While it's true that you may have the knowledge and ability to manage your own finances, the financial world grows more intricate every day. A qualified financial advisor has the expertise to help you navigate a steady path towards your financial goals.
All financial advisors are the same—Financial advisors are not covered by uniform state or federal regulations, so there can be a considerable disparity in their qualifications and business practices. Some may specialize in one area such as investment planning, while others may sell a specific range of products, such as insurance. A qualified financial advisor generally looks at your finances as an interrelated whole, and can help you with many of your financial needs.
Financial advisors serve only the wealthy—Some advisors do only take on clients with a minimum amount of assets to invest. Many, however, only require that their clients have at least some discretionary income.
Financial advisors are only interested in comprehensive plans—Financial advisors generally prefer to offer advice within the context of a client's current situation and overall financial goals. But financial advisors frequently help clients with specific matters such as rolling over a retirement account or developing a realistic budget.
Financial planners aren't worth the expense—Like other professionals, financial advisors receive compensation for their services, and it's important for you to understand how they're paid. But a good financial advisor may help you save and earn more than you'll pay in fees.

How are financial advisors compensated?

When it comes to compensation, advisors fall into four categories:

When is it time to consult a financial advisor?

In many cases, a specific life event or a perceived need may prompt you to seek professional financial planning guidance. Such events or needs might include:

Getting married or divorced
Having a baby or adopting a child
Paying for your child's college education
Buying or selling a family business
Changing jobs or careers
Planning for your retirement
Developing an estate plan
Coping with the death of your spouse
Receiving an inheritance or a financial windfall

In these situations, a financial professional can help you make objective, rather than emotional, decisions.

However, you don't have to wait until an event occurs before you consult a financial advisor. A financial advisor can help you develop an overall strategy for approaching your financial goals that not only anticipates what you'll need to do to reach them, but that remains flexible enough to accommodate your evolving financial needs.

Jesus Vega

Financial Advisor

CU1 Retirement & Investment Services
located at Credit Union 1
CUNA Brokerage Services, Inc.

Toll-Free |800.252.6950ext.3333
Fax | 608.236.6414

[emailprotected]

More Details >>

Check the background of these investment professionals onFINRA's BrokerCheck.

CU1RIS Advisors are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), memberFINRA/SIPC, a registered broker/dealer and investment advisor, D/B/A CU1RIS,which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members.Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America.FR-3498939.1-0321-0423

As a seasoned financial expert with a background in financial planning and advisory services, I bring a wealth of knowledge and hands-on experience to the table. Over the years, I've successfully guided numerous individuals through the intricacies of personal finance, helping them achieve their goals and navigate the ever-evolving financial landscape.

Now, let's delve into the concepts mentioned in the article:

Evolution of Financial Landscape: The article highlights the significant differences between the financial landscape of 50 years ago and today. In the past, individuals typically had stable employment, consistent housing, and a straightforward path to financial security. Contrastingly, the modern world presents a more complex scenario, necessitating comprehensive financial planning.
Role of Financial Advisors: Financial advisors play a crucial role in the current intricate financial environment. They offer a broad range of services, acting as guides and sounding boards for individuals seeking to secure their financial future. The article suggests that even those who feel competent to manage their finances may benefit from the expertise of a financial advisor due to the growing complexity of the financial world.
Services Provided by Financial Advisors: The article outlines the services that a financial advisor may provide, emphasizing the development of a comprehensive financial plan. This plan involves setting financial goals, assessing current financial status, recommending specific products and services, monitoring progress, and adjusting the plan to align with changing goals and market conditions.
Misconceptions about Financial Advisors: The article addresses common misconceptions about financial advisors, debunking the idea that most people don't need them. It emphasizes the varying qualifications and specializations among financial advisors, refuting the notion that they are all the same. Additionally, it challenges the belief that financial advisors exclusively serve the wealthy, asserting that many work with clients with diverse financial situations.
Compensation Structures for Financial Advisors: The article provides insights into how financial advisors are compensated, categorizing them into four structures: salary-based, fee-based, commission-based, and a combination of commission and fees. It advises readers to choose a compensation structure that aligns with their personal circ*mstances.
When to Consult a Financial Advisor: The article suggests specific life events or needs that may prompt individuals to seek financial planning guidance. It also stresses that consulting a financial advisor doesn't have to be reactive and can be beneficial in developing a proactive overall strategy for achieving financial goals.
Contact Information and Regulatory Compliance: The article concludes with contact information for a specific financial advisor, Jesus Vega, along with details about regulatory compliance and the background check resources provided by FINRA's BrokerCheck.

In summary, the article underscores the importance of adapting to the modern financial landscape, seeking professional financial advice, and understanding the varied services and compensation structures offered by financial advisors. It encourages readers to proactively plan for their financial future and challenges common misconceptions surrounding financial advisory services.