While there are many reasons that a person would handle their own financial planning and investing, today I will share with you 3 sure fire signs you should hire a financial advisor.
SURE FIRE SIGN #1: YOU’RE UNORGANIZED AND OVERWHELMED
By far, the single biggest benefit of hiring a financial advisor, in my opinion, is to help you get organized. I don’t just mean organizing a bunch of papers and filing them away. Instead I mean organizing all of your information in way that helps you to make sense of it.
This includes pulling together all of your income, expenses, desires, concerns, debt, taxes, insurances, investments, estate plan, etc… This organization will help you to answer questions such as:
– Do I need to save more to reach retirement?
– Am I projected to run out of money?
– Do I need more life insurance to protect my spouse and kids?
– Will my assets be protected in the event of unforeseen circumstances?
– Are there planning strategies that help to improve my income and net worth?
Getting organized also helps to eliminate that overwhelmed feeling and provide a peace of mind that previously didn’t exist.
SURE FIRE SIGN #2: YOU ENJOY YOUR FREE TIME
If you prefer to spend your weekends or free time doing financial planning, staying on top of planning strategies, investing, keeping up with tax law changes, etc… then go for it! However, if you would rather spend time with family and friends, relax, be outdoors, enjoy hobbies, travel, etc… then this would be a sure fire reason you need to hire a financial advisor.
If you fall into this latter camp, then you could choose to do your own financial planning, but the reality is that you simply don’t want to. For you, life is too short and you would rather spend your time elsewhere.
SURE FIRE SIGN #3: YOU ARE RECENTLY DIVORCED OR WIDOWED AND YOUR SPOUSE HANDLED THE FINANCES
In these situations, not only are you grieving, but now you’ve got to get a handle on the finances. There are bills to pay, investment choices to be made, things to get organized, and planning to be done. There’s a tremendous amount of stress involved as it seems like there are so many things to do, yet you don’t know where to start.
If you’re in this situation, then a financial advisor can help you tackle these items. We’ve unfortunately had clients go through these situations and we’ve been able to get them back on track, educate them on their financial matters, and provide a sense of peace for them.
There are many people who choose to handle their own financial planning matters. But, for those who feel unorganized / overwhelmed, who enjoy their free time, or who have recently been divorced or widowed, then these would be sure fire reasons for you to hire a financial advisor.
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What other reasons might someone hire a financial advisor? Have you thought about hiring a financial advisor but can’t quite pull the trigger? If so, what prevents you from doing so? Please share any thoughts, comments, or questions below.
CERTIFIED FINANCIAL PLANNER™
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