This article was updated on January 18, 2023.
Finding the right financial advisor can be a challenge. With so much information available online, some question whether they need one at all.
People who want to work with a professional also might not be asking the right questions. Should you just find the advisor with the best historical performance of picking investments? Is historical performance a reliable predictor of future results? What else is important beyond investment performance?
What to Look for in a Financial Advisor
Hiring a financial advisor comes down to finding someone who can strategically deploy plans that provide value, whether that’s time savings, an adaptable strategy, or managing the assets in your portfolio to best align with your financial and personal goals.
The role of a financial advisor is much more than selecting a strategy and allocating a portfolio. The right financial advisor can help you achieve your goals by maximizing opportunities and reducing risk.
Often, they do this not through specialized investment talent or insight, but by helping clients manage their emotional responses to volatility and keeping them focused on their objectives. Advisors who can integrate investment management with appropriate tax strategies can do a lot to help you preserve what you’ve made. Avoiding unnecessary taxes can have a surprisingly positive effect on overall investment returns.
Strategic advice from a financial advisor could help increase the impact of the assets at work in your portfolio. And with time, the compounded value of strategic advice can make a dramatic difference on your estate.
Four Examples that Demonstrate the Compounded Value of Strategic Advice
Browse the articles below to learn more about how strategic advice could help deploy existing assets more effectively or increase the overall resources available for implementing financial plans.
- Charitable giving. If you’re charitably inclined, explore tax-efficient ways to accomplish your giving, such as donating to a donor-advised fund.
- Qualified small business stock (QSBS). Learn how strategic planning could be the difference between paying 23.8% federal tax and no federal tax if you meet the requirements for QSBS.
- State income taxes. State income tax rates can range from 0% to over 13%, so your state residency can take a big bite out of your portfolio. Explore strategies around timing a change of residency to align with financial and personal goals.
- Stock option planning. If you have stock options, explore how proper planning can mean the difference between paying income tax at the 37% ordinary tax rate or the 20% long-term capital gain rate.
Keep in mind that you aren’t limited to one or two of these strategies but may find the combination of multiple strategies most powerful.
We’re Here to Help
For an integrated approach to investment strategies, taxes, and estate planning, contact your Moss Adams professional. You can also visit our Private Clients Practice or Individual Investment Services pages for additional resources.
Moss Adams Private Client services may include investment advisory services provided by Moss Adams Wealth Advisors LLC, an SEC-registered investment adviser, and/or accounting, tax, and related services provided by Moss Adams LLP. The information referenced herein is provided for informational purposes only and should not be considered legal, accounting, tax, or investment advice, nor an offer to buy or sell any securities or financial instruments. The services, or investment information, mentioned herein may not be available to or suitable for you. Although these materials have been prepared by professionals, you should not substitute these materials for professional services. Consult a financial advisor before acting on any investment information mentioned herein. Consult a tax professional before acting on any tax information herein. Past performance does not guarantee future performance. All investments may lose money. Moss Adams LLP and its affiliates assume no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.