When Is It Time To Hire A Financial Advisor?

July 21, 2020
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Paul Petersen
Posted in Featured
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If you feel overwhelmed by your finances, an experienced financial advisor can help simplify things and provide direction. But how do you know it’s time to hire one?

Hiring a financial professional has never been more affordable than today. But are your financial struggles serious enough to justify hiring a financial expert?

In this article, we’ll help you find out when is the right time to hire a financial advisor and whether you should hire one now.

You Need an Objective Take on Your Finances

Let’s say you have a business idea and plan on spending your money on this startup. While the idea might sound terrific to you, perhaps it’s not viable at all. A third-party objective opinion can make a world of difference.

A financial advisor can be impartial when talking about your finances and will give you an honest opinion. It might be a good idea to hire one when planning on starting a business. They can save you from a bad decision that could ruin you financially.

You Want to Grow Your Wealth

If you have some money in your savings account and you want to invest it and grow your nest, you could use professional advice on how to do it. An experienced financial advisor is familiar with all the risks associated with investing and will, therefore, analyze the market to recommend the best investment opportunities for you.

That is not to say that investment planning can’t be done by individuals on their own. On the contrary, people across the world are independently investing their money as we speak. There are countless sources of information and finance magazines that can help you stay up to date with investing.

However, if you want to minimize the risks and invest your hard-earned money into something low-risk, there’s no one better to help you than a trusted financial planning firm like Opes Fidelio, for example.

You Want to Plan For Your Financial Future

Maybe you’re young and inexperienced in money matters or you’re planning on achieving some long-term financial goals. Young people who have just landed a good job usually don’t know where to start when it comes to financial planning. They feel overwhelmed by all of it or they simply don’t want to deal with money issues.

It’s entirely new to them and a bit scary too. They could surely benefit a lot from hiring a financial expert to guide them.

A fee-based financial advisor would be the best option in this case. However, young inexperienced adults who don’t have any savings yet but need some help creating and sticking to a budget could use robo-advisors. It’s a cost-effective option with basic features that allow you to manage your finances and stocks and bonds.

You’re Near Retiring and Want to Ensure Financial Stability

Another case where you could use professional help is retirement planning. If you’re near retiring or plan on retiring in 10 years or so, you want to ensure that you don’t run out of money at some point (the biggest fear of all retirees).

Perhaps you have a plan in place and you’ve invested money to secure financial stability, but what if you’re not on the right track? What if you do run out of money in your golden age? The saying “it’s better to be safe than sorry” applies perfectly here because once you’re retired, you should not be worrying about money. You should be enjoying your days comfortably.

A financial advisor can help revise your retirement strategy if necessary and provide useful advice. Together, you can work to adjust your plan to meet your goals.

You’ve Experienced a Major Life Event and Need a New Strategy

People often need some financial planning help when they’ve experienced a major life event such as getting married, graduation, changing career path, divorce, or the death of a spouse.

For example, getting married, starting a family, and buying a house come with significant financial implications. This changes your whole life and the way you think about money.

To be able to buy a house and raise a family, you will need to change your spending habits, start saving as soon as possible, find alternate sources of income, etc. All this requires careful planning. For young couples, this means entering a field of the unknown and a financial advisor can guide them in the right direction.

The same goes for recent graduates who need to figure out ways to pay off their student debt or for divorcees who need to reinvent their lives and singles.

If you find yourself in any of the abovementioned situations, hiring a financial advisor might be the best decision you ever make.