7 Reasons Why You Need a Financial Advisor

Financial advisors know things that you might not. Their advice and guidance can help keep your finances on track and prevent problems before they get out of hand. Financial advisors can help you manage your money more effectively, reduce your taxes and reduce the cost of your estate after you’ve . Financial advisors are trained to help people in their specific financial situation address their unique needs—not everyone needs the same thing from a financial advisor. Some people need financial advisors because they don’t have the time or background knowledge to make informed decisions about their personal finances. If any of these sound like you, it’s time to find a financial advisor. Here are 7 reasons why you need a financial advisor:

You don’t know where to start.

Financial planning is a process, not a one-time event. So if you’re just looking for someone to tell you what stocks to buy, or how to make your mortgage payments more affordable, you probably don’t need a financial advisor. Financial advisors can help you navigate all the different aspects of financial planning, from retirement to insurance and everything in between. Financial advisors are in the business of helping people make informed financial decisions based on their unique financial situation —they’ve been trained to make sure you have the information you need to make the best decisions for your money.

You have too many financial commitments.

If you’re struggling to make ends meet and pay off debt, and you’re trying to start a family, kids are expensive and take a big bite out of your budget. You might be tempted to skip saving for retirement or defer your insurance payments as a way to manage your monthly budget. But if you’re carrying too many financial commitments, you might be setting yourself and your family up for financial trouble. You should know how much you’re paying for your mortgages, car payments and credit card debt along with how much you’re spending on your utilities, groceries and other monthly expenses; along with the amount you’re saving for retirement, your kids’ college fund and other long-term financial goals. If you don’t know where your money is going, or worse, you’re taking on too many financial commitments and ignoring your future financial security, you might benefit from the counsel a financial advisor can provide.

You have little to no savings.

You might be surprised to find that lots of people have no savings at all and yet they have lots of financial commitments. If you have an emergency fund that can cover three to six months’ worth of living expenses, then you’re probably okay. But if you don’t have any savings at all, you need to start thinking about how you’re going to pay for things like doctor visits, car repairs, and how you’re going to keep the lights on if you ever lose your job. If you don’t have any savings, you need someone to help you figure out how to get started. A financial advisor can help you create a budget and identify ways to save money so you can start building savings and reduce your financial obligations. If you have no savings, getting your finances in order is the first step to building a solid financial future.

You want to be sure your loved ones are taken care of after you’re gone.

If you’re single, have no kids and you work in a field that doesn’t offer a pension, you probably don’t have a retirement savings plan. And if you have a significant other, you have kids and you’re the main breadwinner, you don’t want them to have to struggle financially after you’re gone. Life insurance is a way of making sure your loved ones are taken care of financially after you’re gone, but you need to make sure your policy is sufficient. If you don’t know how much you need, or how much coverage you have, you’re not doing the right thing by your loved ones. Life insurance is a serious matter, and if you don’t have enough coverage, or you don’t know how much you need, you could be putting your loved ones at financial risk. A financial advisor can help you determine how much life insurance coverage you need and walk you through the process of purchasing a policy.

You want to be proactive about tax reduction.

No matter what your income level is, it’s important to take steps to reduce the amount of taxes you owe. But many people don’t know how to reduce their tax bill. If you have the means, you should have an investment plan that includes contributing to retirement accounts and other tax-advantaged investment accounts. You also should have an estate plan that takes into account future taxes. It’s important to have a tax and estate plan in place. But many people don’t know where to start. A financial advisor can help you with tax reduction and discuss your options.

You want to know what your options are before making a decision.

If you don’t know how much retirement savings you should have, or you don’t know how much life insurance coverage you need, you want to speak to a financial advisor. But you also want to make sure you’re making the right decisions. Financial advisors have training in areas like risk management, investment strategies, and insurance coverage. They can help you identify your risk tolerance and make sure you understand your options. Having someone to help you make informed decisions is essential if you want to make sure you’re making the best choices for your money.

Conclusion

If any of these sound like you, it’s time to find a financial advisor. Financial advisors know things that you might not. Their advice and guidance can help keep your finances on track and prevent problems before they get out of hand. Financial advisors are trained to help people in their specific financial situation address their unique needs—not everyone needs the same thing from a financial advisor. Some people need financial advisors because they don’t have the time or background knowledge to make informed decisions about their personal finances. If you don’t know where to start, have too many financial commitments, have little to no savings, want to be sure your loved ones are taken care of after you’re gone, want to know what your options are before making a decision, you need a financial advisor.