6 Lesser-Known Ways Financial Advisors Can Help You Achieve Your Money Goals

Consulting with a financial advisor is a great idea, especially if you don’t know where to start with managing your finances. With an advisor on your side, you’ll never have to make big financial decisions alone. Life’s different stages call for advance planning and it’s not always easy to figure out the right steps on your own.

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According to Northwestern Mutual’s 2024 Retirement and Planning Study , three-in-four Americans with an advisor believe that they will be financially prepared to retire. That’s compared with just 45% of Americans without an advisor who feel the same way.

What’s more? Americans with a financial advisor are about twice as likely to have a long-term plan that factors in the economy’s ups and downs over time, feel financially secure, and have enough funds to leave behind a charitable gift or inheritance as compared with Americans who don’t have a financial advisor. They also have more money saved for retirement and expect to retire earlier.

When you think of a financial advisor, you might just be thinking of retirement and estate planning, investing tips, and wealth management. A good financial advisor should offer all of these things, but an even better financial advisor can offer more.

Here are six lesser-known ways financial advisors can help you achieve your financial goals and get ahead , according to Charles Schwab , New York Life , and Plancorp .

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1. Eliminate Debt

Whether it’s a credit card or student loan debt, an experienced financial advisor can help you reduce and eliminate debt. Think about a situation where you might have multiple high-interest debts. A financial advisor might suggest consolidating your debts into one lower-interest loan which you can pay back over time without being overwhelmed by crushing interest payments. Debt management should be a key element of a financial advisor’s job.

2. Create an Emergency Fund

You might be wondering how a financial advisor can help you create an emergency fund. Well, with help creating a strategic financial plan that eliminates unnecessary expenses and better manages your cash flow, you can free up funds to contribute to your emergency fund every month. A financial advisor would likely advise that you keep 3-6 months of monthly expenses in a high-yield savings account — more if you can.

3. Save for a Specific Goal

You might be looking to take a big family vacation, buy a new car, or purchase a vacation home. A financial advisor’s professional guidance can help you plan your finances accordingly to reach your short-, medium-, and long-term goals on time.

4. Improve Your Financial Habits

If you’re lacking when it comes to positive financial habits, a good financial advisor should instill confidence and spark inspiration to change your habits for the better. Financial planning isn’t just about investing. It’s also about increasing your quality of life and overall financial security. Developing good financial habits with the help of an advisor, such as reducing unnecessary expenses and saving money as often as possible, can lead to long-term financial success.

5. Protect and Support Loved Ones

Life can throw you curveballs: an unexpected job loss, an illness that puts you out of work, or your death. Serious life events like these can have devastating financial consequences on your family, especially if you’re the breadwinner or if you’re providing 100% of your family’s finances. A financial advisor can walk you through life insurance and other income protection products available and plan your finances so you’re saving and investing enough to protect your family in the long term.

6. Tax-Loss Harvesting

Tax-loss harvesting is a smart way to offset your capital gains liability. For example, if you cash out on an investment that you made a substantial return on, you’ll be on the hook for short or long-term capital gains tax depending on how long you owned the asset before selling. If you sell an asset that you’ve lost money on at the same time, you’ll realize a capital loss which will offset the tax liability on your realized capital gains. If your capital losses are greater than the gains, the excess will reduce your gross income by up to $3,000. In some cases, that reduction might also result in a tax decrease which will allow you to take advantage of available tax deductions .

This article originally appeared on GOBankingRates.com : 6 Lesser-Known Ways Financial Advisors Can Help You Achieve Your Money Goals