Although anyone could benefit from hiring a professional advisor, the cost is often too high. However, there are times when paying a financial advisor becomes the best investment in your future. But how do you know it’s time to get help from an advisor?
Here are potentially complex situations that might require you to hire an advisor:
You are getting married
When you are getting married and you are planning to combine finances, you need a neutral party. That party could be a financial advisor.
As a couple that is just getting married, you are still getting to know how you can manage your finances as one. An advisor can help you work through your financial goals. With a financial plan in place, you can easily implement it yourself and confirm with your planner as you approach milestones that could have an impact on your financial health, such as having kids.
An advisor will also determine whether you and your better half should file taxes separately or together. There are situations where filing together is more expensive than filing separately.
You are divorcing
Everything that has a beginning must have an end, and it’s unfortunate that for some couples, the end of their marriage doesn’t come at death as they vowed at the altar. Divorce has many consequences and can wreak havoc on the financial health of any couple. First, you will have to depend on your income alone to survive, unlike when you had two incomes. You are also dividing your financial assets like investments, cash and properties, and you still need to support the kids and pay alimony.
If you are going through a divorce, you need to find a good financial advisor and attorney who are on the same page. A good attorney will work to ensure a fair division of assets. A good financial advisor will help you hit the reset button and manage your finances well as a bachelor.
You are having kids
Having kids is expensive. Although this is not news to parents, they often find themselves in financial problems. With day care, health care, diapers, clothing, food and toys, parents could spend thousands of dollars on baby’s first year only. But many people often underestimate the cost of raising kids.
A financial planner will offer professional advice on how to plan your baby’s first year and moving forward. The advisor will guide you on how to balance university savings with retirement savings, ensure that you have the right life insurance coverage and help you grow your money.
Your income is increasing
You have been promoted at work or you have just landed a new job and your income has tripled. A financial adviser will help you to create and implement tax-savings strategies that will help you to handle your income, investments and benefits.
There you have it! One of the most important factors you need to consider is to find a good adviser. He should be experienced and reputable.