When it comes to your retirement, college savings, or your investment goals, there’s a lot to know and understand. Many people bring in a financial advisor to help them get educated, strategize, and make thoughtful decisions about their financial future.
Have you considered bringing on a financial advisor? Here are 5 ways to determine whether it might be the perfect move for you.
5 Reasons To Consider Hiring A Financial Advisor
1. You Admit It: You Just Don’t Want To Deal With Money
Many people simply find it stressful or even a bit boring to manage their own money. Why not get a pro financial advisor to handle all of this this for you? To make this happen though, you’ll need enough investable assets (anywhere from $50,000 to $1 million or so) to make it worth it for a financial advisor taking you on. If you have less than the required amount invested, your best bet is to place your money in low-cost index funds.
2. You’re Nearing (Or In) Retirement
There is a lot to consider when you’re getting ready to retire, and a financial advisor can offer you a third-party opinion. Are you financially ready to retire? Should you file for Social Security, and when? How should you withdraw from your retirement accounts to meet your needs and make sure your money lasts?
Most people can benefit from at least a one-time meeting with a financial advisor when they reach this stage of life.
3. You’re Getting Married Or Starting A Family
Joint finances. The costs of having kids. Life insurance. Estate planning. Saving for college. These are just a few of the financial concerns that come into your life if you’re getting married or having children.
A talented financial advisor will help you strategize and prioritize all of these new responsibilities to create a secure and enjoyable life – now and in the future.
4. You’re A High Earner/Have A High Net Worth
As a high-income earner, it’s possible to save plenty of money but still not take full advantage of the many available tax breaks. From organizing large balances across several types of accounts, to advanced estate and tax planning strategies, it takes a lot of know-how to efficiently manage a large amount of money.
A good financial advisor helps you make those decisions and recommends tax-savings strategies while also overseeing some of the implementation and management responsibilities for you.
5. You’re Self-Employed
As a self-employed person, you might have a different set of financial concerns as well as opportunities. You’ve likely got several different retirement accounts to choose from, an unpredictable income, employees to think about, and plenty of questions about your business structure – just to name a few!
A financial advisor (particularly one who often works with the self-employed) can help you build a more successful business and hold onto more of your money.
Who Doesn’t Need a Financial Advisor?
Financial advisors are an incredible resource, but there are still many instances in which you should hold off on hiring one.
1. You’re Working With A Limited Budget
It can be tough to fit the cost of a financial advisor into a budget that’s already tight. Plus, there’s not always much a financial advisor can implement without extra money available. In the meantime, however, you might find a financial advisor to consult with you on a one-time basis for a reasonable fee to help you get a handle on your priorities.
2. You Need To Pay Off Consumer Debt
If paying off your credit card debt or other debt is front and center in your financial life, it’s often better to consult with a qualified credit counselor instead of a financial advisor.
3. Your Financial Situation Is Straightforward
Most financial advice is actually fairly simple! If your own situation is straightforward but you love getting educated about personal finance, there’s never been a better time to jump in and do it yourself. Take advantage of all the information and the quality tools at your fingertips!
Now that we’ve gone over how you can be sure you need a financial advisor, how exactly do you find and hire a good one? Next week we’ll be sharing tips and tricks for connecting with the perfect financial advisor for you!
*Disclaimer: Citywide Home Loans does not provide financial planning services or any other service apart from lending. You should always consult with your legal, tax and financial advisors to determine which strategy is the most suitable for your specific circumstances.