Do You Need a Financial Adviser?
Determining the need for a financial adviser can be a tricky proposition. That’s because each one of us have unique financial situations, and we don’t always have the same goals, needs and outlook in life. When you’re young, you probably don’t need a professional financial adviser. You can read up on your own, question the older members of your family about managing your finances, and perhaps consult your boss about your salary and benefits.
But there will come a point when a financial adviser will truly come in handy.
- You’re thinking of a career change. A career change will bring about a huge change in your financial situation. A quick consultation with a financial adviser can help you plan accordingly. With the FA’s help, you can make sure that you maximize your company benefits and leave no money on the table, so to speak. You have to make sure that you’re not leaving or ignoring any retirement account. Your FA can then help you predict your future job growth. You can then plan for a different income level and change your lifestyle accordingly.
- You’re starting a business. While the FA is not there to tell you how to make your business successful, they can tell how to go about it in a general way. Essentially, you need to learn how to set up your goals, manage your cash flow, and figure out how you will pay yourself. Then you need to figure out your insurance needs, as well as your retirement plan.
- You’re getting married. Now this is one event that’s really a life-changer. There are too many details to think about such as taxes, debts, and spending habits, and there is quite a bit of paperwork as well. This can get very complicated, and in a marriage it can get a bit ugly too when financial planning doesn’t involve someone knowledgeable and objective. Benefits, retirement plans, and investments need to be figured out, and even the question of joint (or separate) bank accounts must be addressed.
- You’re buying a house. This is perhaps the biggest purchase you will make in your whole life, and it will surely affect your finances. Your FA can help you understand the implications and consequences of your purchase, and they can also help you realize what your budget should be for your home.
- You’re about to become a parent. A growing family means new changes to your financial plans. You don’t just need to account for the baby’s needs in your budget. You also have to plan for your baby’s future especially if something happens to you or to your spouse (or God forbid, to both of you).
- Your financial situation is a mess. Simply put, if you can’t keep track of where your money is and where it’s going, then your FA can help you organize your portfolio so that you can monitor your finances more effectively.
To sum it all up, you need a financial adviser if your financial situation is facing a significant change. With the help of a financial adviser, you can get a very accurate idea of your current situation and what the situation would look like after that change. You can then develop a financial strategy for your new circumstance. You are still responsible for your own financial decisions, but your financial adviser can give you options and can spell out the possible repercussions of your decisions.
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