While money can’t buy happiness, a lack of it can definitely contribute to sadness.
The sad thing is that getting into financial difficulty is pretty easy if you’re not careful. According to one source, the average American has a debt load of $90,460.
Being financially responsible is something most people need to be taught, which is one reason to consider retaining the services of an investment professional. The right financial advisor can help you plan, avoid costly mistakes, and reach financial goals.
Here are five indicators you probably need to speak with a financial planner sooner rather than later.
Life milestone events, either good or bad, nearly always have monetary implications. Getting married, having a child, buying a house, receiving an inheritance, or getting a divorce can all have a direct impact on your financial status.
For example, a marriage will bring together two people with different spending patterns, debt loads, and savings goals. An inheritance means having to make investment choices, tax planning choices, or estate planning choices. And divorce involves managing property settlements, spousal support payments, and planning by yourself.
A financial planner can help you in these and other life situations by doing the following:
In moments of transition, having professional guidance ensures you’re not overlooking critical details.
Retirement planning can feel overwhelming, especially with changing pension rules, fluctuating markets, and uncertain economic conditions. Many people either underestimate how much they’ll need or fail to take full advantage of tools like 401(k)s or IRAs.
A financial advisor can guide you through how much you actually need to retire comfortably, recommend the ideal combination of investments based on your risk tolerance, time horizon, and much more.
The earlier you plan, the longer there will be for compound growth to do its thing on your behalf. Even if you won't be retiring anytime soon, speaking with an advisor can put you on the right path toward financial stability.
If you're signing checks willy-nilly, living on credit cards, or never quite understanding where all of your money goes each month, it's about time that you get outside help. Debt, if allowed to increase, can grow into a big mess -- financially and psychologically.
A financial planner can, meanwhile, review your spending habits to identify where you have areas of difficulty, help you decide which debts to take on first, and suggest whether you should consider consolidating debt or refinancing loans.
Investing is a great way to earn money in the long run. But without guidance, you'll end up risking too much -- or not enough -- and leaving opportunities for growth on the table.
A financial expert can assist you in discovering your risk tolerance and matching it to your investment plan, spreading your account to help safeguard it from market ups and downs, and avoiding mistakes such as emotional investing or chasing "hot” trends.
Taxes and estate planning aren't just for millionaires. If you own assets, investments, or would like to plan for relatives, these are subjects to talk about with an expert.
A financial advisor can provide advice on tax-friendly investments, help you plan your assets so you'll owe less in taxes in retirement, and ensure your estate plan is up-to-date and aligned with your wishes.
Whether you're experiencing a life transition, planning for retirement, eliminating debt, seeking investments, or managing tax and estate situations, a financial advisor can provide you with the direction and assurance you need. Consider them your business partner in building a safe and hassle-free financial future -- step by step.
