It may seem like hiring a financial advisor is a waste of money if everything in your life is going well. However, you should know that you will have to make hard decisions sooner or later. For example, you could encounter an amazing investment opportunity. You may also run into some financial problems that you are completely unprepared for. When you find yourself in these situations, a person that can help you is a financial advisor. Therefore, you should know when the right time to hire one is.
Unfortunately, many people don’t even know what financial advisors do and what some of the reasons for hiring them are. In most cases, people hire financial advisors when they can’t seem to plan their financial future properly and need a roadmap. On the other hand, some folks are simply very bad with money and need someone to tell them how to spend it. However, there are also people that are good when it comes to handling their money, but know that a third-party opinion would help make their financial plans stronger. If you’re not really sure whether you should hire a financial advisor, here is how to determine whether you should.
You’re in Retirement
“It’s a good idea to hire a financial advisor if you’re either in retirement or are approaching it,” advises Merrill Lynch private wealth advisor Patrick Dwyer. When you’re near retirement, you’ll be faced with some important financial decisions. First of all, you will have to determine whether you’re financially ready to retire. You will also need to come up with a plan to spread your money so that you’re able to meet your needs and make the cash last. It can be extremely hard to answer these questions on your own, which is why you should consider consulting a professional.
You Don’t Want to Deal with Money
It’s no secret that a lot of people are simply bad at handling their funds. If you’re one of these people, then you shouldn’t have anything to be ashamed of, since it’s totally normal. Nevertheless, it’s extremely important that you realize and admit you’re bad at managing your money as soon as possible. If you’re aware of the fact that you’re not good with money, it will be a no-brainer for you to hire a financial advisor.
You are Self-Employed
Self-employed people tend to need financial advisors more than other people. This is mostly because they have a lot of different opportunities and financial questions. Self-employed individuals have to worry about business structure, variable income, their employees, and different retirement accounts. By hiring a financial advisor who specializes in working with these people, you won’t have to stress about certain problems anymore.
In some cases, certain people get lucky and become rich all of a sudden. Some of the reasons for sudden wealth include winning the lottery, getting a huge insurance payout, inheritance, and a big divorce settlement. Unfortunately, people who get this type of money suddenly tend to spend it very quickly. Knowing that you have a lot will tempt you to spend it on things that you don’t really need.
You are Planning Your Financial Future
Coming up with a good financial plan for your future is very important and should not be taken lightly. You will encounter many obstacles that you will need to face with limited resources. Some of the biggest decisions that you’ll have to make include paying off your student debt, getting married, buying a new car, purchasing a house, and funding a retirement account. In order to ensure that you won’t run into any problems later on, you will need to come up with a solid plan. Of course, you probably won’t be able to do it alone, which is it’s a good idea to hire a financial advisor.