How to Know If You Need a Financial Advisor

At some point in your life, you have likely wondered, ‘Do I need a financial advisor?’

According to most professionals in the financial industry, the answer to this question is a resounding, ‘yes’.

To figure out whether financial planning is right for you, ask yourself the following questions.

Has My Life Situation Changed Recently? 

Major life events, like getting married, having a child or buying a house, can have a big impact on your finances.

The best time to start planning for these events is before they occur, so it is a good idea to seek out financial advice as soon as you know that these events are on the horizon.

For example, if you are in a relationship and things are becoming serious, you and your partner should visit a financial advisor to discuss your strategy for the future.

An advisor can assist you in blending your finances when you get married and help you make the most of all the tax benefits that go along with marriage.

Similarly, you should see a financial advisor regarding your children as soon as you know you are expecting. This way, you can start preparing for the additional expenses a child will add to your monthly budget.

How to Know if You Need a Financial Advisor

Your advisor can also help you strike the perfect balance between saving for your retirement and your children’s education.

Even if these events have already happened in your life, you can still take advantage of the services of a financial advisor.

An advisor can help you adjust your strategies for repaying your debts, saving for the future and still living a fulfilling life today.

Have My Finances Recently Increased or Decreased? 

Changes to your financial situation, like starting a new job or your spouse leaving work to take care of your children, certainly require a visit to a financial advisor.

When your finances improve, you’ll want to ensure you are using that extra money wisely, whether to get out of debt or invest for your future.

A financial planner can help you spend that money most effectively.

If your level of income has decreased, an advisor can assist you with modifying your budget to accommodate the reduction in monthly funds.

While it may seem challenging at first to trim your expenses, your financial planner can help make the process as painless as possible.

With proper planning, you may not even notice the difference in terms of your comfort and lifestyle.

Can I Handle the Ups and Downs of Investing? 

When you invest in the stock market or other speculative avenues, you expose yourself to financial risk. A number of factors influence the markets from day to day, and you’ll have little to no control over them.

What’s more, you’ll need to commit to doing plenty of research to identify stocks and funds that make sense for your needs and life situation. The markets are always changing, so this requires ongoing effort on your part.

Instead of trying to go it alone, enlisting a financial planner can make investing much easier. Your advisor should be well-versed in the various investment types so that they can make tailored recommendations for you.

An advisor will also be able to avoid the emotional distress that often accompanies market downturns, resulting in many people making poor financial decisions based on fear and emotion.

Because your advisor is not personally connected to your assets, they’ll be able to make decisions based on fact and reason.

Do I Need a Financial Planner? 

In the past, financial advice from a qualified advisor was reserved only for the wealthy. These days, on the other hand, this service is much more accessible, even to those of modest means.

If you have any money left over each month after paying your regular bills, you can make use of a financial planner’s services. In many cases, advisors charge only a small percentage of your assets under their care, so you don’t need to worry about exorbitant fees.

Be sure to check with a potential advisor about their rates before you sign any agreements.

It is important to note that not all financial planners have your best interests at heart. In some cases, planners may recommend a particular investment because it nets them the largest commission, not because it is the best choice for your needs.

It is always a good idea to have a prospective advisor sign a fiduciary agreement to ensure your needs, not theirs, will be the top priority.

Get Started with Financial Planning 

If you still have questions about your finances or need assistance managing your debt, get in touch with the financial experts here at Debt Negotiators.

We’ll be happy to help you evaluate your circumstances, and we can offer free advice to help you make your decision. Call now to get started.


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