When to Hire A Financial Advisor in 2023

Financial advisors are professional financial planners who help their clients to solve many of the difficult issues relating to personal money and wealth management matters. Financial advisors study a degree in business and they receive their qualification from a financial service board (an independent board) which enables them to dispense financial advice. Taking advice regarding finance from just anybody is a very risky affair, and if you want to depend on someone else to take charge of your money, then you must make sure that the person is experienced, competent and a qualified financial advisor. These individuals can help you make a wise and intelligent decisions about where and when to spend your money. They give you advice on investments, and can also give an outlook for the future depending on your current income level and expenses. Other roles of a financial advisor includes coaching you as you encounter financial issues, set up investment accounts/Invest money for you, develop a plan that addresses your main areas of concern (insurance, college planning, avoiding estate tax, retirement, and so on), finds financial vehicles like mortgages or insurance policies for you, and also help you assess your financial situation and goals.

Venturing into money management world all by yourself can be intimidating and risky, if you don't have a previous knowledge and experience with building a financial plan or investing funds. Then it is better you employ the expertise of financial advisors who are qualified, competent and knows exactly what they are doing. Hiring them will help you navigate the terrain of international and local finance. Their knowledge and skills is neccesarry to examine your expenses and income. If you want to make a purchase and you are having trouble making a good decision, call your advisor for their input. With financial advisors managing your financial affairs, you can sleep well at night knowing fully well that your finance is in safe hands.

List of Best Times to Hire A Financial Adviser in 2023

When is it time to hire a financial advisor? Below are a few examples.

When you are starting a family

Starting a new family and having kids both brings about new financial challenges. From managing the cost of having children, to thinking about life insurance, to joining finances, to college savings and estate planning. Young families have several financial responsibilities on them and most times, it can be very hard to balance them. A competent financial advisor will help you prioritize and navigate all the responsibilities, so that an enjoyable and secure financial life can be created for you and your family both now and in the future. A very good platform to look for financial advisors that focus on individuals in this stage of life is the XY planning Network.

When You Are a High Earner

If you are earning high, you may find it easy to save a lot of money but you may not really have the knowledge and experience to prioritize things and benefit from the various tax breaks that are available to you. A qualified financial advisor can help you make those wise decisions and also recommend strategies of tax-savings. They can also take over many of your management responsibilities so as to allow you focus your energy and time on making money and also enjoy your life. Irrespective of the stage of life you are in, NAPFA, alliance of comprehensive advisors and XY planning network can all be a great place to look. The alliance of comprehensive advisors have a very strong focus towards tax planning.

When you don't want to deal with cash

Many persons don't like managing their money. And that is understandable; what is of importance is that you recognize it, and get a competent individual to do it for you. In this instance, hiring a qualified financial planner is recommended. All that is needed is enough assets for your financial advisor to take you on. Talking about investment advisors, many of them cannot afford to work with clients who have less than $100,000 investments. Some may reduce that to $50,000 whereas other will not take clients with less than $500,000 or even $1,000,000 to invest. So you may have to look around. Although the $100,000 level looks good, but you are better off keeping your cash in a low cost index fund if you don't have up to that amount to invest.

When you experience a life event

Anytime a life event occurs, it is always accompanied by a financial impact. For example, having a child implies that you need to plan for their cost of education, when you get married, it means that you will merge finances with your partner. Getting a professional financial help should depend on personal comfort level and life event rather than any level of asset or income. An individual who just graduated from the University and got his first job would definitely benefit from financial advisors help with budgeting tactics, debt management, and basic advice. Life events such as changing jobs, starting a family, kids going to school, and buying a home all have financial implications. As a result, hiring an experienced and qualified financial advisor is very important. These advisors can help you draw an unbiased financial plan.

When you need help with planning your financial future

For many of us, this may actually be true when we are starting out. There are many goals that are competing for our low financial resources-funding a retirement account, buying a house, paying off Student Loan, getting married, saving an emergency fund, taking a vacation and so on. This is why money is quite overwhelming at 20 and 30 somethings. However, it's comes down to the cost of financial plan. And another extra money paid to a financial advisor is also a competitor for your already limited financial resources.

Nevertheless, if you have an emergency fund and you can afford the fee of a financial advisor without going into debt, then hiring a qualified financial advisor might turn out to be a good investment. And in fact, the advisor's fee may pay itself in a few months if he/she makes a good financial decisions.

When You Have a Very Specific Financial Need

Some certain situations needs special knowledge that people and many major professionals don't have. For instance, dealing with a huge student loan debt may require a very strong understanding of the several repayment options and many other rules that overlap each other in a quite confusing but specific way. Having a baby requires a long-term special financial need and it involves a very different set of plans than many people encounter. If you are in a situation like this, hiring a good financial advisor with a special knowledge in that particular situation can be helpful in making the right decisions.

When You are Near or in Retirement

There are 3 major questions regarding finance that near-retirees and retirees have to answer: there questions are

1. When and how should I file for social security?

2. Am I financially ready for retirement?

3. What is the best strategy to withdraw from my retirement accounts in order to make my money last and also to meet my needs?

All of the questions above have a huge impact on retirement lifestyle and none of the questions are easy to answer. Each of them have a number of strategies and nuances that may be difficult to implement or understand without the assistance of a professional financial advisor, who have an in depth knowledge about financial plans for retirees and near-retirees. Many persons in this particular phase of their life could leverage on the knowledge and skills of a financial advisor who specializes in retirement planning. NAPFA and garrett planning are two great places to look.

When You Have a High Net Worth

Individuals with high net worth also have several set of financial issues. From advanced tax and estate planning strategies to coordinating large balances that spread across different types of accounts. There is a specialized skill set that is required in effectively and efficiently managing a large amount of money. There are so many financial planning firms that charges low fee who can actually help you plan your finance effectively. These firms are focused primarily on helping individuals with high net worth make wise decisions, with NAPFA being the best place to look.

When You are Self Employed

People who are self employed often have various sets of financial opportunities that are available to them. They also have questions around business structure and ownership. There are many different financial accounts to pick from, employees to take care of, and more variable income. A financial advisor who specializes in working with people that are self employed have a good knowledge of all these issues and can have a unique plan for the opportunities that are available to you. A true professional will help you ensure that you are actually getting the most out of your enterprise, thus giving you the flexibility to build your business to be more successful and also helping you save more of the money you are working very hard to earn. Also, irrespective of your life stage, NAPFA and XY planning network would be good places to look.