If you haven’t worked with an advisor before, it can be difficult to know when you should actually start working with one. It’s similar to starting that new gym routine. You keep telling yourself “I’ll start on Monday”, and then a year passes and you still haven’t gone to the gym.
Here are three references to when it might be a good time to have a conversation with a financial advisor:
You don’t have the time or desire to manage your personal finances
Keeping up with your personal finances takes time. There’s no way around it. If you’re a young professional or have a family, your free time is probably very valuable to you and it could be spent better ways than trying to learn about your finances and then actually executing the correct strategies.
Sometimes it’s just boring. Unless you’re weird like me and have a love for numbers and solving problems, creating a whole financial plan for yourself or your family doesn’t sound too enjoyable. The time and headache a financial advisor may be able to save can pay for itself many times over.
A lot of personal finance isn’t too complicated, it just requires the upfront work of learning the information and knowing how to determine what the right or wrong decisions are for YOUR situation.
You don’t have any savings
If you know you should be saving but haven’t done it yet, it might be time to have a talk with an advisor.
One of the first steps of tackling your personal finances should be to establish an emergency fund. If you haven’t completed this step, an advisor will be able to help identify why and how to get you going in the right direction.
A common misconception about financial advising is that you have to be rich to work with an advisor. Fortunately, this isn’t true! It may seem that only rich people have financial advisors, but that’s because they tend to the value in them and they understand that their time is better spent other ways than managing their own personal finances.
You’re starting a family
Starting a family can be one of the most exciting times of your life, but it can also be one of the most expensive. There are countless different expenses that will start to come up such as life insurance, housing expenses, childcare, normal child costs, medical expenses, education savings, etc.
When your job is to be the best parent you can be all while maintaining your career and personal life, there’s not always enough time in the day to learn personal finances to the extent needed to be successful.
No, I’m not saying that you can’t manage your own money. It just requires a lot of work and attention, and one question that I always ask is - how do you know if you’re doing it right?
For example, if you were to choose one type of retirement account over another - the tax implications could be hundreds of thousands of dollars at retirement that you didn’t know about.
While not everyone needs a financial advisor, those who do have one tend to see the benefit in returns along with the peace of mind knowing that your money is being handled by someone you trust.