Managing your finances can be cumbersome, especially if you are a high-net-worth individual or a seasoned investor. One of the factors we have seen to be almost unanimously true is this…most wealthy people are very busy and complete a ton inside of their day! To say that another way, I assert that most wealthy people are some of the hardest working people! Inside of that sort of schedule, it can be hard to create “excellence” in every area of their lives. As it should be; not one of us can conquer every responsibility with perfection.
Tencap’s role as a financial advisor is to help our clients make great decisions around money and investments so they can focus on all of the other areas of life where their direct attention is needed. By creating “excellence” for our clients around their savings plan, spending plan, investment plan, tax plan, insurance plan, and estate planning, we help our clients feel secure and confident around their money, exposure, and their capacity to build and secure their wealth. We gain a lot of satisfaction in making dozens of decisions every year to help our clients in this specific category!
It is not just about tracking spending, but about making informed decisions that align with your long-term goals. Fortunately, a financial advisor can support you in this regard. They can help you make better financial choices and develop a solid plan to help you build and secure your wealth. While this is done in several different ways, the primary way this is done is by helping our clients reduce risk and maximize returns! Often people think of this as only being done with investments, but for a professional firm like Tencap, investment management is just the beginning! As an example, we review each of our client’s tax returns every year, looking for ways to be more compliant (avoid audit risk) and most importantly, to optimize the tax return by surrendering as little as possible to taxes (maximize return).
After helping thousands of clients over our career we can proclaim that it is very rare that someone comes to us where we cannot find significant ways for our team to maximize returns and reduce risk in several areas of their financial world!
This post will further explain how financial advisors can help you stay accountable so you can build and secure your financial future.
The Role of Accountability in Personal Finance
Financial accountability involves consistently tracking your expenses, checking your investments’ performance, and staying focused on your goals while not making emotional decisions. As a high-net-worth individual, accountability means staying disciplined across complex portfolios and resisting the urge to make impulsive decisions that can disrupt long-term plans.
One recent example of this is almost every election year, we have a single client that chooses to liquidate their money and move to cash, perceiving and citing reasons they believe the economy will fail and they will lose all of their money. We have yet to witness these fears become reality and we have yet to see that be a wise decision. Rather, it has proved to be a terrible decision with very severe consequences for a financial plan! Yet, someone will step forward at the end of nearly every election cycle and choose to move to cash.
The role of an excellent financial planner is to help you see the emotional decisions you want to make and to help you make better, informed, evidence-based decisions. While this is one example, there are many other ways financial advisors add value.
Other clients, might overspend, save inconsistently, or make poor investment choices without accountability or coaching. You might be considering a fraudulent opportunity or you might be taking on way more risk than you even know! You may be poorly diversified or have subpar bonds in your portfolio. These types of mistakes can prevent you from hitting more significant financial milestones as you approach retirement. Being responsible with your finances means committing fully to your financial plan and making prudent decisions at every junction! Remember, it only takes one terrible decision to wipe out decades of savings and growth.
While managing finances independently is possible, people have more success with a team effort. Sharing responsibility with a trusted partner, like a financial advisor, helps you focus on your goals and stay accountable to a financial plan. Aside from supporting your strategy, they can also guide you in making informed decisions and coach you on various options you may not be aware of!
But know this: after 14 years in this business, my company has never reviewed an independently managed (do it yourself) financial plan, without spotting several important decisions that could have been made, but were not. My assertion here is simple. You can be all sorts of brilliant, but regardless of your brilliance, you will almost always miss things that a professional, living in the space of investments and money management, will be able to see. Stay brilliant in your lane and know that we are pretty capable and intelligent in ours.
How Advisors Enhance Accountability:
- Unbiased, professional insights – Unlike family or friends, an advisor offers objective insights so you can decide on high-stakes investments without the influence of emotions. This viewpoint provides a clear strategy, so you would not have to make decisions based on your bias or passing market trends.
- Goal setting and refinement – A financial advisor can help you set measurable and actionable goals for emergency savings, spending plans, or investments. They ensure your objectives align with your lifestyle.
- Regular check-ins – An advisor can regularly review your progress, address any changes, and make timely adjustments. This steady support helps you stay on track with your goals, even when life’s demands might pull you away.
- Financial education – They simplify complex financial products and market trends. With this knowledge, you can actively improve your financial journey.
Choosing the Right Financial Advisor
Finding the right financial advisor is critical to ensure a successful accountability journey. Some factors you should consider are:
- Solid credentials, like a Chartered Financial Analyst® (CFA) or Certified Financial Planner® (CFP) certification
- Experience and life experience in areas that align with your financial goals
- Fee structure (commissions, flat fees, or a percentage of assets they manage)
- Specialties based on your specific priorities and goals
- Financial planners focus on personal finance issues
- Registered investment advisors manage investment portfolios
- Life insurance agents address particular protection needs
After choosing an advisor, build a relationship based on open communication, transparency, and mutual respect. When you trust your advisor, you will feel comfortable discussing your finances. Finding someone you personally and professionally get along with makes accountability a positive experience and helps you stay committed to your financial plan.
Building Financial Discipline with Expert Guidance
Accountability is a powerful force when managing finances. Working with a financial advisor can motivate you to stick to your financial goals and be accountable for the future you have declared you want to create. From strategic goal setting to maintaining regular check-ins, the right advisor will guide you through complicated decisions with clarity and confidence.
In addition, working with a trusted advisor means investing in expert guidance and a partnership that holds you accountable for your financial ambitions. Ultimately, you can achieve more disciplined spending, wiser investments, and peace of mind with a sound financial strategy tailored to your goals.
Life rarely goes the way you think it might! Since that is how it is for nearly everyone, you can be left feeling confident your financial advisor will not be surprised if life goes differently than you expected. To say that another way, we build the financial plan and work towards various milestones, but we know life is complicated! So we stand ready to help our clients amend their planning with life’s twists and turns.
Regardless of the surprises life throws your way, know we still want to maximize returns and minimize risk in your financial world. We stand prepared to coach you on all the ways this is done!
Schedule a time to meet with one of our advisors. We offer to hold a no-cost consultation where you can meet our team, interview us, and find out if we would be a good fit for your goals. Too many people spend egregious amounts of time wishing for a financial plan – taking little action. I implore you to start actively and intentionally creating your financial plan today! If you don’t do it now, how or when will it ever be done?
