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When to Seek a Financial Advisor

It isn’t easy to admit that you may need help with your finances. You may even believe that you have been investing properly without any advice. For the sake of your family and your future, you should consider asking a professional for a second opinion. A financial advisor directs you on how to save money and helps you invest so that you reach your goals. Whether you are saving for college, retirement, or just trying to minimize your debt, a good financial advisor will listen to your needs and help you construct a detailed plan. He or she can tailor their advice specific to your situation. They should also help to educate you on your investments, so you’ll be a better partner once you understanding their investment decisions.

How do you know you need a financial advisor? First of all, you must get in touch with a financial planner if you need help outlining your future. Most people who have just finished high school or are now entering college should seek advice for their financial future. It’s best to understand how money works and how you can possibly make it work for you while you’re young. In addition to just starting out, if you have a specific goal you’re aspiring to reach, you may need to seek an advisor for help. For example, if you have a large amount of debt that you’ve accumulated, a planner could walk you through a reassuring strategy that will help you repay the debt in a timely manner.

Next, you’ll need to seek advice from a financial professional if you’re not in a good position to handle money. Just like some people might hire a housekeeper because they don’t want to clean their own house, you can hire a financial advisor if you don’t want to deal with your own money. Advisors can create a portfolio so that your money is invested safely with little to no risks. You should also note that advisors who fully invest your money would cost more. It would probably be worth it if you were able to invest more than $100,000. If you have less than that, it may not be feasible to hire a money manager. In this case, you could look for low-risk money market or securities investments.

Another reason to look for financial counsel is if you’re not sure that you are saving enough money for your retirement. Many people start to consider their retirement after the age of 50. They begin to think about their lifestyle and wonder what they should do to plan for the future. A financial advisor would be able to dedicate their time to discuss retirement issues and formulate a reasonable plan of action. This plan should contain items that you currently own, your revenue, taxes, and anything else that could contribute to a successful retirement plan. Relying on your 401K may not be enough. In life, unexpected events occur that you may not have prepared for and that is why you should always have a backup plan. Your advisor would go over details where you could invest in EFT’s (electronically traded funds), fixed annuities, mutual funds, bonds, or CDs.