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When should you hire a financial advisor?

When you see the number of people who would rather discuss things like "how to lose weight" rather than talking about money-related issues, then, you wouldn't be surprised to discover why so many people haven't even considered hiring a financial advisor yet.

From financial planning and savings goals to everything in between, people are often reluctant to engage in such conversations because they all know deep down that they are bad at money management. But what many fail to grasp is that good money management is actually a skill in itself, and without the right know-how there is little anyone can do about managing their finances well. In comes a financial advisor! Financial advisors are trained professionals who, unlike you, have the right experience and skill-set required in handling any money-related situation. They are renowned for their abilities to recommend strategies that will help you save well, invest wisely, clear off your council tax arrears, meet up with your debt obligations, and live within your means.

Popular advice people seek out from a financial advisor

Many people seek the help of a financial advisor in order to deal with specific issues in their lives. The questions and issues may vary from individual to individual, but can include:

  • I'm nearing retirement, but I want to ensure that I'm on the right track
  • I've just inherited a sum of money from my parent, and I would like to get some advice on how to invest the money
  • I'm struggling to keep up with my debt repayment, how can I stop bailiffs from coming to my home?
  • I enjoy financial planning and investing, but I want a second opinion to see if I could do it better.
  • I have been struggling to stow enough funds away in my savings account, how can I go about it?

These are some of the many popular issues people confront their financial advisors with, and each time they get answers that are always helpful. So, what are you waiting for?

This then brings us to the question:

When should you hire a financial advisor?

This is one tough nut to crack, especially if you've never worked with one before. Should you hire him or her for a one-time issue, or maybe you need to hire one for an on-going project? In an ideal world, everyone should have financial advisors with whom they can check in once a month or call before making a big purchase or investment decision. But we will now highlight some of the ideal situations when you need to call in a financial professional.

Nearing Retirement

The least retirees or near-retirees could do to secure the next couple of years, after leaving their jobs, is seek out the help of a financial advisor. If you are nearing retirement or maybe you are already retired, it is essential for you to meet up with your advisor in order to get answers to questions like:

Am I financially ready to retire?

How and when should I file for social security?

What's the best strategy for withdrawing from my various retirement accounts?

Starting a family

Getting married and raising kids introduces a new set of challenges, one you might find difficult to handle without the right advice and assistance. Indeed you will have various responsibilities and obligations to attend to, some of which could put a hole in your purse if not handled well. A good financial planner, however, will help you navigate and prioritize all of these responsibilities so that you can create a secure and enjoyable life.

You're a high earner

If you are one of the few lucky ones that get some rich pay from their jobs, then you should consider hiring a financial planner. When you earn high, chances are you have the ability to save a lot of money but don't know how to go about it. But with the help of a good financial planner, you will be able to prioritize your expenses and monitor your cash flow, thereby giving you the liberty to put some cash away in your savings account.

You're self-employed

Self-employed individuals tend to have a different set of financial questions and opportunities available to them. There are different retirement accounts to choose from, more variable income, employees to attend to, and questions around ownership and business structure. All of these are questions a financial planner can help you with.

You have a specific planning need

Indeed, special situations require special attention. Certain situations call for specialized knowledge that many people, including some professionals, don't have. If you find yourself in a unique financial battle, finding a financial advisor with specialized knowledge in that specific situation can help you make the right decisions.

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