7 Times You Need to Talk to a Financial Advisor

It is a common thought for many people that a financial advisor isn’t for them, that they don’t make enough money in order to benefit from the advice of a financial advisor or that they can mange their money on their own. While you may be doing a great job at managing your wealth, there are 7 times in a person’s life when they should absolutely talk with a financial advisor.

  1. When you get your first job as an adult. High paying jobs aren’t available like they used tobe, and that’s fine. Whether you are barely making $30,000 at your new job or clearing $250k a year, sitting down with a financial advisor is an important next step. It’s never too soon to begin planning for retirement, learning how to payoff your debt (school loans, anyone?), and how to best utilize your employer benefits.
  2. When you get married (or divorced). Making decisions during an emotional time, good or bad, can lead to poor decision making. Having an unbiased third-party, such as a financial advisor, review your financial situation during a divorce or after, can help you to minimize your financial loss. As for newly engaged couples, conversations about money, debt, and combining assets can feel awkward and aren’t always addressed (which can lead to marital stress down the line). Speaking to a financial advisor can help you have a healthy form of communication about important financial matters.
  3. When you receive a large sum of cash. Many of you may think that this will not ever apply to you, but it actually can. Your employer may offer you a bonus, you may receive an inheritance, or get a hefty raise one day. Too often, people do not plan for an increase in their income and squander the opportunity. A financial advisor can help you determine the best use of that money such as investing it or paying off some or all of your debt. They can help you see the big picture so that they new funds aren’t wasted on an unnecessary purchase or a shopping splurge.
  4. When you are thinking about retirement. Like planning a vacation, planning for retirement is best done in advance. Seeing a finincial advisor is a wise step in retirement planning. They can help you ensure that you set aside enough assets for retirement while still making the most of your current wealth. At a minimum, you should see one 10-15 years before your expected retirement age in order to make sure you are on the right track, but that doesn’t mean you can’t plan sooner – you’ll just have more time to save.
  5. When you need to take care of aging parents. Its common for people to want to stay in their home as they age and as we all age, additional care may be needed. An in-home nursing aide can cost over $40,000 – are you are your parents financially prepared for that additional expense? A financial advisor can help you plan ahead for the additional costs of caring for aging parents
  6. When you are planning to pass on your wealth. Certified financial planners have extensive knowlege of tax laws and can show you how to best prepare your estate plan in order to minimize estate taxes.
  7. If and when you reach $250k in assets. Between your annual income, real estate equity, and other personal assets, if your total net worth accumulates to $250k or more, then not only should you see a financial advisor, you should consider ongoing support from them as well. They can help you make sound investment decisions, create a lasting retirement plan, and make the transfer of your funds to your benecificaries smoother.