7 Life Moments When You Should Hire a Financial Planner
Have you ever thought about hiring a financial planner? Do you know anyone that has one? Have you heard great things? Did you wish you had your own?
You are, of course, free to hire a financial planner at any point in your life, but I wanted to give you some flags that might indicate that the help of a financial planning expert would make a massive difference for you right now.
1. You are just starting out.
I started That Wall Street Guy because of my desire to ensure that an ‘everyday Joe or Jane’ could access the same type of advice, help, and guidance, that Wall Street firms pay millions to access.
My goal is to share advice with a sprinkling of hacks, tricks, and cheats that give you an edge. Keeping in mind that common sense, at least when it comes to investing, is not that common.
When we are investing, we can only pull so many levers to improve our long-term performance.
Can you make better returns on your investments? That’s a tough one; even experts get it wrong.
What about placing more money into the market? Well, that’s not easy given all the other day-to-day expenses that require cash.
So, what can you do?
The biggest lever you can pull is ‘time in the market’.
And the only way to pull this lever is to start early — as early as possible. The sooner you pull this lever, the further ahead of the competition you will be.
A fantastic way to do this is by hiring a financial planner.
2. You’re at, or close to, retirement age.
Retirement itself is often less scary than the thought of retirement.
I’m not suggesting that there are no pitfalls or things to avoid before retiring, quite the contrary. What I’m saying is that most surveys have shown the decade before you retire can be extremely scary.
And what do pre-retirees worry about? That they have enough money saved for retirement.
Nearing retirement might be the most crucial time to see a financial planner.
The rules and regulations around retirement, what you are eligible for from an aged pension perspective, and how you will be taxed going forward are incredibly complex.
Financial planners are trained to help individuals plan for and navigate the challenges that arise nearing retirement. They understand the rules and, more importantly, how to best take advantage of them.
3. You had a huge pay raise.
Pay rises happen, and I suspect it happens to most people at least once in their life.
They land a new job, get a promotion, or find themselves in the right place at the right time. Then, all of a sudden, the money is pouring in.
You budget all your life for $X per month, and like most people, spend about the same as you earn. And then suddenly you are making three or four times that.
Deep down, you know that if you don’t act now, you will blow it all — and you would be right.
This is a great time to engage with a financial planner.
Placing that extra dough you are earning into a long-term investment might mean you can turn that windfall into an early retirement.
A financial planner can help you decide where to invest, what options you have, and what might be the best way to improve your long-term wealth goals.
4. You’re going through a divorce.
No, we never see it coming; even with the statistics staring us in the face, we still think we will be different.
When we go through a divorce, we know that it’s good to get the best lawyer possible.
But what about your finances? That’s just as important.
Divorces can take a major toll on your emotional health. They can also take a significant toll on your financial health because of shared finances.
Who gets what? How do I protect myself? Where should I reallocate my assets?
The helpful advice of a financial planner can quickly put all these questions and concerns to rest.
5. You received an inheritance
I almost put this at the top of my list because I probably see this the most.
I get a call from a client who says, ‘I’ve lived all my life modestly, and now suddenly I’m rich’.
In most cases, they are not actually rich; they just feel like they are.
Instead of being over the moon, they are terrified. What do I do with all this money?!
Receiving an inheritance is an important time to seek out a financial professional.
You might have questions about where to invest, how to care for family members, or how the newfound money might change your life moving forward.
Financial planners can answer all of these questions.
A financial planner has no emotional involvement and has a fiduciary duty to place you in a better position. They are objective. They will be used to working with money like this.
6. A major life event happens.
A little bit of a catch-all category, but there are too many major life events with financial impacts to list all of them. These are events like:
- Changing jobs
- A new source of income
- Having a baby
- Selling a business
- Moving interstate or internationally
All of these require plans, including a financial plan.
Don’t make this stuff up.
Budgeting around life events is not about rough estimates of what you earn and spend. You need to go over everything: assets, liabilities, income, expenses, plans, goals, investments, tax.
A financial planner can eat this complicated stuff up for breakfast; it’s part of their daily routine.
7. You’ve just had enough of being worried about money.
Something has pushed you past the point where you have had enough.
It could be anything. Often, it’s something small; it’s been building for some time now, and you have been continuously putting it off. Until finally you can’t take it anymore and you bite that bullet.
When you reach that point, a financial planner will be happy to help.
Financial planners love people like you because you are determined. You aren’t making a minor decision — it’s a big one, made with focus and determination.
A good financial planner will be able to put you on the right path, really quickly.
So, those are the seven times you should consider a financial advisor.
Have you been in one of these categories and NEARLY sought out advice, but didn’t?
You should reconsider. Financial advisors are still available, and their impact will always be just as positive.
If you want to make well-informed decisions — seek out a professional. If you aim to make a well-informed financial plan, seek out a financial advisor.
And don’t forget…
- Whether at the beginning or end of your career, hiring a financial advisor is the right move.
- The best way to protect a new income is to seek professional advice.
- Financial advisors are a great way to reduce stress and worry when it comes to money.
