With some services, it’s obvious when you need to hire a professional. But certain professions are less clear, and financial planning is at the forefront. After all, many people think that everyone has to plan their own finances one way or the other; so why spend money to hire someone to do it for you? It turns out, having a competent financial advisor can be extremely important, though for others, it wouldn’t be advisable. Here’s how to tell if you should or shouldn’t hire a financial advisor.
When You Should
If you’ve recently come into money, whether through an inheritance, a windfall, or simply a significant career move, you should definitely consider hiring a financial planner. Planning your finances with smaller amounts of money as opposed to planning the finances of a large estate are completely different processes. At lower levels of wealth, economizing and saving up are the best ways to maximize your finances, but there are avenues and options available at a higher net worth which you simply will be unequipped to navigate.
If you’re retiring, you’ll be moving from a steady income to a fixed-income, and you want to be able to maximize your wealth in the later years of your life. Managing finances when you’re getting a paycheck every two weeks is significantly different than making sure you are able to live comfortably in your golden years on what you have saved.
If you’re starting a family, then you’ll have to juggle an entirely different set of finances than you’re used to. Having kids is expensive, and if you handle the increased expenses inefficiently, it could mean trouble for you and your family.
When You Shouldn’t
If your budget is especially tight, you probably shouldn’t spend money you can’t afford on financial planning. Good planning is important, but the amount you would have to spend won’t cover what you could save.
If you have a lot of credit card debt, then financial planning isn’t exactly what you need. Planners will advise you to pay off the debt, but aren’t as equipped to streamline the process for you as a qualified credit counsellor would.
If you’re in the sort of financial situation where a planner is recommended, then it is vitally important that you secure a quality one. You don’t want to waste money on inefficiency, especially in today’s economy, when you never know what could change. In St. Augustine, quality financial planning can be provided by Thompson Baker.
