SYM-21-64 Employer Advisor

Working with a Financial Advisor to Make the Most Out of Your Employment

A few decades ago, an individual, family, or business owner would seek the services of a financial advisor primarily for investment planning and insurance needs. Today’s financial advisor provides much more value — and not just at retirement time. One of the hallmarks of a professional financial advisor is the CERTIFIED FINANCIAL PLANNER^TM designation. A CFP® professional must complete a rigorous education program, pass a grueling exam, perform ongoing education, and be committed to serving their clients’ best interests.

Small businesses also benefit from the knowledge and services of a financial advisor. Among the eight principal knowledge topic categories in the CFP®program are Tax Planning, Risk Management, and Insurance Planning.[i] These facets of operating an independent business are critical to running a successful firm. Employee benefits is another area in which many small business owners are not well-versed.

SYM Financial Advisors also serves individuals and families. Selecting the right retirement account contributions, adequate insurance coverage, and other employee benefits provides confidence that you are making the most out of your compensation package.

Benefits of Working with a Financial Advisor

A financial advisor can help a client builda well-diversified portfolio with an asset mix tailored to each client’s needs and goals. At SYM Financial, our long-term focus and commission-free structure are designed for the best interests of our clients. While younger individuals who are just starting in their careers may be able to manage it on their own, those who are more established can benefit from working with a trusted financial advisor.

There have been several studies performed to quantify the value of a financial advisor. Vanguard[ii] concluded that an individual can earn up to 2.4% per year of additional return from working with a financial advisor versus the “DIY” approach. Not all benefits of working with a financial advisor are immediate or quantifiable — but over time, they can accumulate to put the client in a better place financially. For example, staying on track with a financial plan, making regular contributions to retirement savings, and having a budget through good and bad times can be tremendously valuable.

A proper financial plan is holistic. It considers strategies to help clients accumulate assets, fund retirement accounts, choose the right fund mix, and ensure diversification. Diversification can be difficult to maintain at times, particularly in today’s social media culture where flaunting a winning stock trade is so common. This “fear of missing out” often leads to poor investment outcomes for those who do not follow a disciplined approach to investing. That’s where a fiduciary financial advisor can step in and add value. Think of it as having an experienced coach on your team.

If you are employed, one of the best ways to build toward a secure retirement is through maximizing your saving and investing strategies. Many employees have access to a 401(k) or similar program and even a Health Savings Account (HSA) through their job. These accounts offer tax-advantaged savings with an investment feature. SYM Financial Advisors helps clients review and optimize these plans.

What Are Your Employee Benefits?

The best place to begin is withdigging into your benefits package. It is estimated that 31% of total workplace compensation comes in the form of benefits, according to the U.S. Bureau of Labor Statistics.[iii]A financial advisor can help assess the strengths and weaknesses of your employment benefits. This starts with understanding what you are entitled to, figuring out which benefits are being underutilized, and helping you make the necessary changes.

The potential rewards of working with a financial advisor go beyond a simple one-time benefits check. Annual tax optimization, insurance planning, and risk management reviews can also be performed using employment benefits. We help clients set the proper retirement account contribution and choose the optimal insurance coverage as their personal situations change. Making the most of a client’s salary and benefits is a critical service, because too many employees “set it and forget it” when it comes to their benefits.

How Do I Know If I Need a Financial Advisor?

Imagine the first day at a new job. You are excited, a little nervous, and optimistic that you have found the right place for your skills and passions. You may be asked to do many tasks to get ready for starting work: get your ID card, set up your computer, figure out your passwords and access to files… and yes, among the many Day 1 tasks is completing the paperwork from the HR department.

You quickly look through the list. The idea of getting the most out of your benefits is simple — but putting it into practice can get complicated. Signing up for the 401(k) seems like a no-brainer, but how much should you contribute each pay cycle? What investment funds should you choose? Are the fees associated with those funds reasonable? Should you do regular or Roth contributions? How much should you put toward the HSA? The insurance elections can be even more overwhelming, particularly if you have a family and have to coordinate benefit selection with your spouse.

Imagine the peace of mind of working with a knowledgeable financial advisor in this scenario. The advisor can review your employment package, discuss your goals and situation, and explain the difference between the options available to you — so that you can make confident, well-informed choices for yourself and for your family. ­­

For those not working with an advisor, a few haphazard employee benefit selections can lead to years of missed chances. Paying too much in taxes or being under (or over) insured can prove to be costly over time due to the compounding effect.

Working with SYM Financial Advisors

SYM Financial is here to help. We can be your trusted team to help you optimize your salary, cash flow, and employee benefits. We also advise small business owners on how to best structure a benefits package and retirement plans. We provide 401(k) and retirement guidance for plans, sponsors, and participants. In addition to employee education, SYM Financial collaborates with third-party administrators, attorneys, CPAs, and compliance professionals.

[i] https://www.cfp.net/-/media/files/cfp-board/cfp-certification/education/2015-principal-knowledge-topics.pdf?la=en&hash=2F9FE4A8D72047B8658C87A87B492693

[ii] https://www.vanguard.com/pdf/ISGQVAA.pdf

[iii] https://www.bls.gov/news.release/ecec.nr0.htm

Disclosure: Past performance is not indicative of future results. The opinions expressed herein are those of SYM Financial Corporation (“SYM”) and are subject to change without notice.This material is not financial advice or an offer to sell any product. SYM reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. SYM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about SYM including our investment strategies, fees, and objectives can be found in our ADV Part 2, which is available upon request.

from SYM Financial Advisors https://www.sym.com/sym-21-64-employer-advisor/
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