Deciding whether or not you need a financial advisor is the first step in getting your financial house in order. In making this important decision, let's look at the type of person who benefits most from working with a financial advisor.
You might need a financial planner if…
you have a full schedule
You know the importance of financial planning , but don't have the time to commit to learning all the intricacies involved in managing your money. To you, spending time with family and doing things you enjoy are more important. A financial advisor can do the work and let you live life.
To this person, money is a confusing thing. I work with a lot of people who are highly competent in every area of their life and yet feel intimidated by investing. This could be largely in part because they have never had to do it or they just don't feel comfortable with numbers. A financial advisor can easily alleviate many of the financial fears you might have.
you’re facing a major life transition
You don't know what you don't know. Going through a transition, whether it be retirement, the recent loss of your spouse or switching jobs, can be a tremendous source of stress, both in terms of finances and life in general. Walking with a financial advisor through those times of transition, especially an advisor who has been trained in working with transitions, can be invaluable.
you value financial advice
You may not be able to watch your finances on a regular basis. In this circumstance, you may want financial advice to guide you toward the future you desire.
Financial decisions weigh heavily on you
If financial decisions keep you up at night, you are probably in need of an advisor. A well-developed plan should ease financial concerns and allow you to focus on the things that are important in life.
There's the marriage issue
Managing your finances on your own is one thing, partnering with your spouse is another. This can be done well, but even if one spouse is very comfortable managing the finances, if the other spouse is not, an advisor may be a benefit to both.
Not everyone needs a financial advisor
This may sound strange coming from a professional financial advisor, but it's important to recognize that when it comes to finances, one solution is not right for everyone. Anyone who tells you anything different is lying to you!
Here are the characteristics of someone who probably doesn't need a financial advisor:
They love personal finance and read about it all the time
There is a wealth of information on the internet about personal finance. There are entire websites set up to provide the step-by-step guidance on how to get your financial house in order. To some, this is an exiting way to spend an evening. People who enjoy it will not need a professional to take it off their plate.
They have the time to learn and manage their investments going forward
It's one thing to know how to do something and another thing to actually do it and do it consistently. Financial planning takes consistent time and effort. Those who are willing to put in that time and effort do not need a financial advisor.
Market uncertainty excites them
One of the biggest advantages of working with a financial advisor is staying on course when the market goes down. Making a mistake at the bottom of a market cycle can have significant implications on your portfolio. DIY investors must have the stomach for the market cycles and intuitively understand how markets work.
They want to be in control
This is sobering to write as I can be this person. I'm independent, self-employed and know that I am capable of learning most things. I'm learning to get help where needed, but know that if someone is not willing to give up control with their finances, they won't. People who cannot let go of control of their finances should not bother with employing an advisor.
They don't want to spend the money
If you don't want to pay for financial advice, then don't. You will always be thinking about the price tag, which will deter you from focusing on what's really important.
If it seems you are a person who does not need a financial advisor for any of these reasons, but you are still unsure of your next steps, schedule a call with me. I would love to point you in the right direction and give you the resources you need to help you get on track. There are absolutely no obligations or strings attached. I gain tremendous satisfaction from helping people with their finances, even when it means they do not use me as their financial advisor.