Many people think financial planning is a one-time event tied to a specific financial goal, like preparing for retirement. But good financial planning is a process — a long-term approach provides better results.
So, when should you hire a financial planner? There’s no wrong time to consult an expert, and it’s never too early (or too late) to start working with a financial planner. However, there are certain scenarios when a financial planner can provide specific, targeted guidance for maximum impact.
Let’s look at some of the times when you could benefit most from hiring a financial planner.
Hire a Financial Planner When… You’re 5 to 10 Years from Retirement
While it’s never too early to think about retirement, financial planning becomes more crucial the closer you get to retiring. During the final decade or so of your career, it’s important to ensure your savings and investment strategy align with your retirement goals.
An experienced financial planner can help ensure that your retirement plans align with the lifestyle you want to live in retirement. They can help you decide when to start taking Social Security benefits and offer guidance to reduce your tax liability.
As you get closer to retirement, your financial planner can help you adjust your investments to balance growth and risk. They can also work with you to create a withdrawal strategy that provides enough income without increasing your taxes or draining your savings too quickly.
By meeting with a financial planner five to ten years from retirement, you have enough time to get everything lined up for a smooth transition to a comfortable retirement.
Hire a Financial Planner When… You Experience a Major Life Change
Whether it’s planned or unexpected, a major life event can significantly impact your finances. Marriage, divorce, career changes, children — these circumstances can impact your budget and financial goals.
When you have support from a financial planner, even unexpected events are easier to handle. A professional can guide you through these transitions to minimize financial challenges and seize opportunities.
Depending on the exact scenario, a planner may suggest updating your financial plan to combine or divide assets. They can also help you adjust your insurance coverage, estate plan, or tax strategies based on your new financial situation and goals.
Hire a Financial Planner When… You’re Ready to Make Big Financial Moves
Are you considering a big financial change? Buying a home, sending a child to college, changing careers, or starting a business are just a few examples of situations that require strategic financial management.
A financial planner can walk you through a complex situation, helping you understand affordability, assess risk, set realistic budgets, and monitor progress on your goals. They can provide funding suggestions for a new business or help you analyze the pros and cons of taking on debt or dipping into your savings.
If possible, start talking with a planner at least six months before making a serious financial decision. If you seek guidance a year ahead, that gives you even more time to research all the options and choose a path that aligns with your available resources and long-term goals.
Hire a Financial Planner When… Your Finances Feel Too Complex to Manage Alone
Does managing your finances feel overwhelming? If so, you’re not alone. Most people experience stress or anxiety about their finances at various life stages.
Managing your money can feel difficult when you’re just starting out, especially with a tight budget. But financial planning can also get more complicated as you build wealth.
Working with a financial advisor means you don’t have to make all those decisions alone. An expert can help you organize your finances and balance your investments to meet your goals. They can create tax strategies to reduce your liability and guide you through all the steps of estate planning.
A good advisor can also recommend other experts if necessary. If your taxes or estate planning needs are complex, your financial planner may suggest working together with a CPA or attorney to build a cohesive plan that addresses every aspect of your finances.
No matter where you are in your career or how much money you have, a financial planner can make it easier to manage. Reach out to a financial professional as soon as you start feeling overwhelmed — they can help reduce your mental burden and prevent things from getting more complicated in the future.
Hire a Financial Planner When… You Want to Leave a Legacy
When you think about your legacy, what comes to mind? Maybe you want to provide for your partner and children (or grandchildren). Perhaps you want to make a charitable impact with your assets. No matter what you want your legacy to look like, making it happen requires a comprehensive strategy.
With a financial planner, you can get all the pieces in place, whether you need to create a trust, update your beneficiaries, or divide your assets among different charitable organizations. When you start early, you can enjoy the peace of mind that comes with knowing your legacy is taken care of.
Hire a Financial Planner When… You’re Feeling Financially Stable but Uncertain
A financial planner can help you recover when you need to tighten your budget or recover from an unexpected financial emergency. But they can also provide critical support when you feel comfortable with your income and budget.
If you’re making enough money but aren’t sure what to do next, contact a financial planner. They can help you take the next steps toward long-term goals like travel, retirement, and education.
And if you don’t have any goals yet because you were focused on just paying all your bills, that’s OK too. A planner can help you identify your financial priorities and develop clear, realistic goals that align with your values.
It’s Never Too Early to Hire a Financial Planner
While a financial planner can help guide you through financial challenges like job loss, there are many benefits to hiring a professional proactively. Comprehensive financial planning takes time, and working with a planner long before retirement or other life events helps ensure you’re prepared for all the changes that may take place.
The earlier you start working with a planner, the easier it is to have everything in place for planned scenarios and unexpected events. Whether you’re looking ahead to retirement or need direction now that you’re in a comfortable financial place, a financial planner can offer expert guidance and personalized advice.
Here at Guiding Wealth, we work with clients of all ages and walks of life. Whether you want support to create a new budget or organize a complex estate plan, we can create a roadmap that aligns with your goals and priorities. To get started, schedule a consultation.