5 Reasons to Work with a Wealth Advisor

It goes without saying that 2020 has been a difficult year. Since the end of January, it seems like we have gone from one crisis to another, scrambling to understand and adapt to a global pandemic and an election season among other events that have invited financial uncertainty.

Having a wealth advisor puts you in a position to consistently make prudent financial decisions over time – and can make all the difference during periods of uncertainty. Unfortunately, many investors miss this opportunity. One CNBC poll (from visitors to their website) indicated that 99 percent of investors don’t work with a financial advisor, mostly leaving the responsibility to a spouse, or going it alone.

If knowledge is power, then working with a wealth advisor is pure economic empowerment, and your wealth-building advantage.

Here are 5 reasons why:

1. Your Financial Life Can Be Complex and Complicated

Whether your financial needs are simple or complex, it’s important to have a strategy in place. Once you go beyond wanting to “make money,” your financial goals will ultimately require preparing thoughtful plans before taking action and putting your money to work.

Even the simplest financial situations require deciding between account types, investment vehicles, and planning years into the future. Your financial needs will most likely change over time, and very possibly increase in complexity. A wealth advisor can help you utilize a strategy at every step of your financial life, no matter what your situation may be.

Ongoing Retirement Planning

Planning for retirement is unique. It’s nearly impossible to know what the world will be like in a year, let alone in 30 or 40 years. If you are several years away from retirement, the very idea of it may seem more abstract than real. Nevertheless, saving and investing in advance for retirement is instrumental to securing your financial future.

Retirement planning, like investing, may present you with a whole new world of terminology, information, laws, and viewpoints. Linscomb & Williams' team of experienced wealth advisors helps clients filter through all this noise and create an actionable retirement plan that can simulate their potential financial outcomes decades into the future.

Easier Family Planning

The needs of your family are likely an equal priority to your own, if not higher. Therefore, financial planning must balance your needs with the needs of your loved ones, while utilizing a strategy that works for you across many fronts. A wealth advisor can help you manage this heavy lifting.

Life events, such as the birth of a child, paying for college, inheriting a ranch or family business, or otherwise protecting your family’s assets, through vehicles like trusts and estate plans, almost require a wealth advisor to help manage all of the moving parts.

Maximize Tax Savings

Talking about taxes may put you to sleep, but neglecting to actively seek tax efficiency can cost you potentially millions of dollars over your lifetime. Texas is named one of the most tax-friendly states in America, but roughly the top 50 percent of all taxpayers pay 97 percent of individual income taxes, while the bottom 50 percent pay the remaining 3 percent.

As your income increases, your tax burden will too. A wealth advisor can help you better manage your tax burden with your retirement accounts, investments and other wealth management strategies, potentially saving you thousands of dollars each year.


Linscomb & Williams has been helping families plan for the future for nearly 50 years. Contact us to schedule a free, no-obligation consultation.


2. A Wealth Advisor Can Take the Emotion Out of Your Finances

Many will agree that money is one of life’s most important resources, and it directly affects your quality of life. Because of this, money is an emotional topic, but money and emotion don’t mix.

For example, suppose you receive an inheritance. Losing a loved one is never easy, and the added whirlwind of administrative tasks, difficult conversations with family members, paperwork, and tax questions coming your way can be overwhelming. Blending a sudden, unexpected inheritance into your financial plan’s investments may represent a challenge you never anticipated.

Working with a wealth advisor in this scenario can bring clarity to all the financial ramifications of an inheritance, as well as a plan to effectively spend, save, or invest the money, as your goals require.

Failing to control your impulses when buying an expensive item, or ignoring the risks of a particular investment, can also severely damage your financial life. A wealth advisor can be an effective voice of reason to keep your emotions from clouding your judgment. Sadly, one thing we've observed more than once in our near 50-year history of helping families is the acquisition of a new client relationship where the family is reeling from a significant financial mistake and only belatedly realized the value of having a trusted source of advice and counsel. 

Worse, if markets are volatile, or even in the midst of a decline, your wealth advisor is a critical partner to help you stick to your financial plan and not fall victim to the herd mentality common in markets. If you fall prey to your emotions, you will likely sell low and buy high, doing just the opposite of prudent investing. This is a reality of human behavior that we witnessed being played out again in the market gyrations during the spring of 2020.

3. Assumptions Don’t Always Work

Past performance doesn’t guarantee future results.

Not only can assumptions about money be inaccurate, they can prove to be dangerous. It’s important to always question your assumptions and have a financial contingency plan just in case the market, your job, or your family situation changes.

A common cause of financial ruin is being blindsided by an economic event, like a recession or market downtown, without sufficient preparation in place, such as a diversified portfolio or an emergency savings. A wealth advisor can provide the proper perspective when making your financial plan, keep you aware of potential what-ifs, and plan accordingly.

Read these 7 investing assumptions that can hurt you.

4. The Current Environment Makes Things Even More Complicated

The year of 2020 isn’t over yet, and the ramifications of the pandemic and other factors won’t go away overnight.

Looking ahead, the Congressional Budget Office projects overall improvements in GDP growth and employment, reaching 4.2 percent and 6.3 percent by 2024, respectively. Good news, but no one surely knows what the future holds after this pandemic. On top of that, analysts are split between optimism and pessimism, as they look ahead.

Creating a comprehensive financial plan and managing it over time is challenging enough in any market environment. The additional onset of the current pandemic, a somewhat unprecedented new political climate, and many other factors demand effective planning and sensible decision making. Establishing a relationship with a wealth advisor gives you the best chance of successfully navigating these tricky financial waters.

At Linscomb & Williams, our credentialed and experienced wealth advisors have nearly 50 years of working together as a team, helping families plan for the future. We’ve experienced many different financial environments and markets. We invite you to use this experience to your advantage by scheduling a complimentary, no-obligation consultation with our team. Getting a conversation started is step 1.

5. The More Money You Have, The More You Can Lose

As mentioned earlier, financial success directly affects your quality of life. However, as your wealth grows, the more you stand to lose. The risks to your finances take place on many fronts as you increase your wealth. For one thing, you become liable for more taxes as your yearly income increases.

Additionally, investing a large sum of money can welcome a high amount of market risk if not invested or diversified properly. The world can be unforgiving at any income level, but having more wealth at your disposal means more opportunities, and therefore, more risk.

An effective wealth advisor can help you steer clear of common pitfalls as your income increases, and can provide a number of solutions to help you better protect your wealth and obtain the financial outcomes you deserve.

Don’t Go It Alone

There’s no need to manage all of the complexities of your financial life alone. Wealth advisors can help improve your finances on all fronts. They can help create a tailor-made financial plan to better manage your spending and savings, help you plan and invest for the future, and make recommendations that can help you save on your taxes and protect your estate for future generations.

Maintaining a relationship with a wealth advisor is one of your best opportunities to create your best financial life. Imagine the peace of mind that can flow from having a trusted partner in preparing and executing your plan.


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Lantz Bowman, CFP®

Lantz Bowman, CFP®

Lantz Bowman is a Director and Wealth Advisor for Linscomb & Williams.

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Investment Advisory Services are offered by Linscomb & Williams, an SEC registered investment adviser, and a subsidiary of Cadence Bank. Linscomb & Williams (L&W) provides financial planning, investment management, and retirement plan and investment consulting services. L&W is not an accounting firm, and does not provide tax, legal or accounting advice.

Information expressed herein is based upon opinions and views of L&W and information obtained from third-party sources that Linscomb & Williams believes to be reliable, but Linscomb & Williams makes no representation or warranty with respect to the accuracy or completeness of such information. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice.