If you’re like most people, you want to do everything yourself. You feel confident and won’t trust anyone with your hard-earned money.
While this might be a prudent approach in specific situations, there are times where it’s not worth making critical financial decisions on your own, and you need a financial advisor.
Here are the right times to consider hiring a financial advisor.
When you are retiring
It is usually a good time to start working with a financial advisor when you are about to retire.
While it may seem counterintuitive to hire someone and spend more money when you retire, there are reasons for doing so. A financial advisor can help you figure out what a comfortable retirement will look like for you.
They will consider your savings, investments, retirement accounts, other assets, and your debts, lifestyle, and plans for the future.
Then they can help you create a plan that will allow you to maintain your standard of living throughout your retirement years.
Retiring is an exciting time in life, but can also be stressful. You want to make sure you have enough money to do all the things that you’ve been looking forward to during your retirement years.
At the same time, you don’t want to overspend on things you don’t need and run out of money too soon.
When filing for divorce
Divorce is an emotionally challenging experience, but it doesn’t have to be a financial calamity. In many cases, the right time to hire a financial advisor is before you file for divorce. Divorce can have a significant impact on your assets (after property division) and your credit score.
During divorce, one of the first steps is assessing your assets and debts. Hire a financial advisor independently or through your divorce lawyer, unless your lawyer has in-house capabilities to do it for you. Make sure that all marital assets are accounted for.
Joint bank accounts, investment accounts, real estate holdings, business assets, vehicles, and any other property owned in common should be listed on paper. Do the same for debts like mortgages, car loans, and credit card bills.
Another equally important part is to go over your monthly budget to see what you’ll need for your living expenses post-divorce. Take into account new possible expenses, such as alimony and child support.
Plan for a new house and separate bank accounts, and review life insurance and retirement accounts post-divorce with your financial advisor.
When someone in the family is injured
When a family member is seriously injured in an accident, it could mean significant expenses for treatment and rehab, and a potential loss of income if the injured person was earning.
It can be challenging to know your options and how to plan for the future when you’re in this situation. It may be worth hiring the services of a financial advisor at this time.
Financial advisors can help people make informed decisions by providing unbiased advice on investments, insurance policies, and other matters related to money management.
They are also trained professionals who understand how much risk each client should take with their finances to avoid losing everything during tough times like these.
When you inherit a lot of money
If you are going to inherit a large sum of money, you should hire a financial advisor. The first thing that a financial advisor will do is inform you of your new rights and responsibilities as someone who is going to receive a lot of money.
This way, you will not be unprepared for sudden new tax obligations or other legal requirements.
Moreover, a trusted financial advisor will help you figure out how to invest your money wisely. Depending on your goals and risk tolerance, they may recommend different stocks, bonds, or other investments.
They can also explain any fees associated with each type of investment so that you know what to expect.
They will create a plan for how much money should be invested vs. saved for emergencies or retirement funds.
Finally, if there are any legal obligations related to inheriting large sums of money (such as an estate), it’s best to have an attorney present before signing any contracts or documents – just in case something goes wrong later down the road.
