As we just watched the New England Patriots in another Super Bowl, many fans once again debated what makes a successful team – the coach or the quarterback. The truth is that sustained success doesn’t come from a single person; it comes from discipline, process, preparation, risk management, and shared accountability over time.

Financial planning works the same way.

Many financial advisors apply the same principles — disciplined decision-making, thoughtful risk management, and steady coaching through market and life transitions. Just as in football, long-term financial success isn’t about a single trade or a hot stock; it is about executing a dynamic plan over time that changes as your life circumstances and goals change.

Expertise Beyond the Internet

A Google search might tell you what documents are part of an estate plan, or when required minimum distributions begin, but it may not accurately tell you whether they are right for you, or whether you have implemented them correctly. Financial advisors bring professional judgment, experience, accountability, and a holistic approach when providing personalized strategies to help you achieve your goals. Unlike online content, advisors can:

• Ask the right questions you didn’t think to ask
• Identify nuances and risks specific to your situation
• Integrate financial planning with your taxes, retirement plans, insurance and legacy goals
• Help you translate your goals and wishes to your estate planning attorney

Certifications like the CFP® aren’t easy to earn for a reason – they represent rigorous training and a commitment to high professional standards.

Accountability and Motivation

Knowing what to do and actually doing it are very different things. Life gets busy, and financial tasks often get pushed to the back burner. This is where a financial advisor acts like a personal trainer — not only providing expertise but also holding you accountable.

We all know that saving for retirement, optimizing taxes, and securing proper insurance are important, yet many people delay these tasks. Advisors help prioritize these goals and keep you on track. For instance, if you’ve been procrastinating setting up a retirement plan, an advisor can simplify the process, motivate you to take action, and ensure the plan aligns with your long-term aspirations.

What Does a Financial Advisor Do?

A financial advisor provides comprehensive support across various aspects of your financial life, ensuring your plans are well coordinated and effectively implemented. Below are examples of services provided by Milestone Financial Planning, LLC to clients when appropriate:

Concierge Services

• Schedule regular meetings to review progress and update plans.
• Coordinate with other professionals, like attorneys and accountants.
• Maintain copies of important documents, including insurance policies, estate plans, and tax returns.

Cash Flow and Budget Management

• Analyze income and expenses for alignment with your goals.
• Plan for large or one-time expenses and help manage debt.
• Establish emergency funds and advise on lines of credit.
• Provide college planning guidance.
• Maximize your savings.

Risk Management and Insurance

• Review existing insurance policies and benefits to identify gaps.
• Recommend strategies to protect against financial risks.
• Coordinate with insurance professionals to review, update, and buy insurance.
• Help manage elder care planning.
• Offer Medicare planning.
• Guide annuity planning.

Investment Management

• Conduct portfolio reviews and assess asset allocation.
• Provide rebalancing strategies and withdrawal plans.
• Select and monitor investment vehicles.
• Manage concentrated positions and implement dollar-cost averaging.
• Coordinate your portfolio with outside investments not managed by the advisor.
• Discuss new investment fads, such as Bitcoin.
• Review risks in your portfolio and how to mitigate them.
• Talk about investment volatility when markets are not doing well.
• Help you stay invested when markets are volatile.

Retirement Planning

• Develop Social Security claiming strategies (and identify law changes, such as the recent increase in benefits that applies to people collecting some state or federal pensions).
• Advise on IRA contributions, Roth conversions, and employer-sponsored plans (401(k), 403(b), self-employed plans).
• Plan for required minimum distributions and other milestones.
• Assist you in developing a withdrawal strategy for retirement (i.e., your “paycheck”).

Tax Planning

• Review cost basis and employ tax-loss harvesting strategies.
• Track carryforward losses, deductions, and credits.
• Adjust estimated tax payments based on actual expected tax liability.
• If your advisor employs CPAs or enrolled agents, help coordinate adjustments.
• Review strategies to reduce tax liability now and in the future.
• Integrate tax planning with Medicare premiums for those aged 63 or older.
• Assist with monitoring income for those who receive subsidized health insurance (premium tax credit) are subject to IRMAA (income-related Medicare premium tax for those with higher incomes).
• Provide stock option planning, including for ISOs, NQSOs, RSUs, and ESPPs.
• Advise on changes to tax rules, such as recent changes to inherited IRAs.
• Maximize Health Savings Account deductions.
• Set up and fund a donor-advised fund.

Estate Planning

• Assist in finding an estate planning attorney familiar with your needs.
• Review estate documents and beneficiary designations.
• Facilitate discussions about incapacity planning.
• Confirm homestead beneficiaries and coordinate estate plans with other professionals.
• Attend estate planning meetings with you to make sure everyone is on the same page, then assist you in implementing the plan.
• Assist with legacy planning — gifting assets to children and grandchildren or charities in a tax-efficient manner, either during life or after death.
• Provide guidance on gift tax management and generation-skipping tax avoidance.
• Explain trust funding and monitoring.
• Help you understand your estate documents.
• Provide advice on second marriage with children planning.

Additional Services

• Assist with charitable giving, including appreciated stock, donor-advised funds, and gifting strategies.
• Offer guidance on education planning and funding.
• Provide support for elder care, and review options (including CCRCs, home healthcare, and long-term care policies).
• Deliver education on financial planning topics that impact your life.
• Work with a widow/widower who did not previously handle the finances or taxes and assist with tasks they are not familiar with.

A financial advisor’s role is to simplify complex financial decisions, provide personalized strategies, and ensure your financial goals are achieved efficiently and effectively.

Relationships

A great advisor acts as a sounding board, advocate, and positive resource for financial items that impact your life. Advisors have relationships with other professionals, and a referral to a trusted, vetted resource (for tax/estate planning, insurance, or a mortgage) is something that the internet can’t offer. A good advisor will bring you peace of mind and help make you feel comfortable regarding your financial future.

The Value of a CERTIFIED FINANCIAL PLANNER™

Not all financial advisors are created equal. A CFP® certificant brings a higher standard of expertise and accountability. Here’s why working with one can make a difference:

1. Fiduciary Responsibility: CFP® professionals are required to act in your best interest when providing financial planning services. This fiduciary duty ensures that their advice is unbiased and tailored to your needs. A CFP® practitioner is required to disclose all conflicts of interest and how they will be mitigated.
2. Comprehensive Knowledge: Becoming a CFP® certificant involves extensive education in areas like tax planning, retirement strategies, investments, and estate planning. Additionally, candidates must pass a challenging exam and meet strict experience requirements.
3. Experience: Beyond book knowledge, CFP® professionals are required to gain real-world experience, completing at least 4,000 to 6,000 hours of financial planning before earning the designation.
4. Ethics and Accountability: CFP® professionals are held to a strict code of ethics and standards. They must disclose any bankruptcies or legal issues, and their conduct is monitored by the CFP® Board, which investigates complaints and enforces compliance.
5. Ongoing Education: Laws, strategies, and financial products constantly evolve. CFP® professionals must complete continuing education to stay current, ensuring they provide up-to-date advice.

Choosing the Right Financial Advisor

Selecting a financial advisor is a major decision. While some advisors offer “free” services, they are often compensated through commissions on specific financial products, which could create conflicts of interest. Fee-based advisors, on the other hand, are paid directly by their clients and must act in their best interest, offering unbiased recommendations across all aspects of financial planning.

When choosing an advisor, look for qualifications like the CFP® designation and a compensation model that aligns with your priorities.

For even greater assurance, consider a fee-only advisor who is committed to your success without conflicts of interest related to investment or insurance products. An RIA (registered investment advisor) is a professional or a firm that provides financial advice and investment management services and is registered with the appropriate regulatory authorities, typically at the state or federal level. RIAs are held to a fiduciary standard, meaning they are legally required to act in their clients’ best interests at all times. They typically operate on a fee-only or fee-based model. This means they charge fees directly to their clients for their services, such as a percentage of assets under management (AUM), hourly rates, or flat fees, rather than earning commissions from selling financial products. RIAs are required to file a Form ADV, a public disclosure document that outlines their services, fees, potential conflicts of interest, and other key details. This document provides transparency to clients about how the RIA operates.

Success in Practical Terms

While a recent Vanguard study tried to put a dollar value on advisor advice, this better performance is highly specific to the client, advisor, and type of advice that is provided. Based on our experience, we have seen significant dollar savings for our clients by implementing the following strategies:

1. Personalized beneficiary planning in line with goals, as well as considering the client’s and their beneficiaries’ tax rates
2. Adjustment of beneficiaries for terminally ill individuals
3. Charitable planning combined with Roth conversions to significantly reduce future tax liability
4. Proper titling of assets in line with goals and estate planning documents
5. Correct documentation of your wishes in your estate planning documents
6. Turning a convertible term life insurance policy into a permanent policy for a terminally ill client, providing the spouse with hundreds of thousands in additional assets at their death
7. Assurance that clients are adequately insured for various risks, including death, disability, and long-term care, as well as overall liability
8. Roth conversions
9. Annual Roth contributions (or backdoor Roth contributions, for those with high income)
10. Review of your annual tax returns and identification of areas for future tax planning
11. Ongoing tax planning updated throughout the year

Closing Thoughts

The value of a financial advisor extends far beyond managing investments. They bring expertise, provide accountability, and help navigate the complexities of your financial life. CFP® professionals, in particular, offer a higher standard of care and competency, giving you confidence in your financial decisions.

“Success is not determined by whether you’re beating the market, but whether you put in place a financial plan and a behavioral discipline that are likely to get you where you wanna go.” — Ben Graham

There is a lot to consider when looking for a financial advisor, and your circumstances are unique to you. If you need assistance with your financial planning or want a second opinion on your portfolio, please reach out to our team.