Personal Finance

4 Times You Should Hire a Financial Advisor

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2 Articles Written
man against gray brick background looking down into empty wallet

We need to talk. It’s probably not what you think, but it is personal. So personal, in fact, 68% of Americans chose to avoid divulging this information in favor of sharing their weight.

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What could it possibly be? Here’s a hint: It’s about your money.

Let's face it. No one likes talking about their financial situation. Whether you are a millionaire or a working-class hero, discussing your finances with your friends and family, let alone an advisor, may feel taboo.

So, why is it that Americans do not talk about money? While we may not have the answer to that question, after you read through this article, you will (hopefully) feel a little more comfortable with the subject and know when to ask for help.

4 Times You Should Hire a Financial Advisor

When You Have a Secondary Income

Earning an additional income is a move that many financial advisors encourage. Advisor Eric Brotman thinks it might be a good idea to start that side hustle, especially during these unusual times. As he spells out here, “…you’re going to want the money.”

Maybe you finally got around to starting your own business or you own a rental property. A financial advisor can assist you in handling multiple money streams, especially if these are new adventures for you. Even if you do have experience with additional income, a licensed financial professional can help you to minimize your margin for error resulting in optimal success.

Finding the perfect part-time job or extra gig does not have to be rocket science. Take one of your passions and turn it into a lucrative side business. If you want to keep your hobbies separate from your professions, see what services are in demand in your area. Still need some ideas? Check out my previous article “3 In-Demand Side Gigs to Earn Extra Cash in 2020.”

side-income

When Your Life Changes

Even if you feel like your life has become sort of stagnant while social distancing, that doesn’t mean your life is without change. Many of us are struggling to keep our jobs, our investments have become uncertain, or we have an ever-increasing pile of bills, among any number of other sudden changes.

Related: 5 Tips for Those Struggling Financially (& Ready for Real Change)

As we struggle to make ends meet during this pandemic, it may seem like the wrong move to spend more money on expert assistance, especially if it feels more important to spend money on bills, finding a job, or home supplies. In reality, taking a step back and asking for help now could save you more than you realize.

You can hire an advisor to help you get started or to serve as an investment mentor for the long haul. In any uncertain climate, having some reassurance and guidance is key. Many financial advisors use a method called behavioral coaching to keep your worries in check and help you plan for what lies ahead.

When You Feel Overwhelmed

Now, not everyone is a money guru or has an expansive amount of monetary knowledge. Some of us may not know what actions to take, where to spend the money, or how to pay off debts. It can be easy to get in over your head. This can be a great opportunity to press the reset button and either create a new strategy on your own or bring in some outside help.

For instance, a financial planner can help you organize your revenue and set a goal-oriented timeline that works best for you. They can help you sort through the clutter, determine your priorities, and collaborate with you on a road map to help ease some of the pressure.

We get it: It can be easy to be distrusting when someone tries to tell you how to spend your money. You may have some economic expertise in your wealth of knowledge. That is great, but another set of eyes, professional ones, may be all you need to set sail in the right direction.

Related: 3 Reasons to Start a New Business During Retirement

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When You Prepare for the Next Chapter

Maybe you are helping a child prepare for college or your retirement is around the corner. Your financial advisor wants to do what they can to help you make the best decisions for your future. Even situations like family inheritance can be daunting. Having an advisor to help clear the fog can be a good thing.

Make sure that you hire the right person for your situation. The qualities of a retirement advisor may not be the same as those of someone helping you or your child pursue further education. Why hire a financial advisor to help with your retirement? As you enter the next stage of your life, the previous one comes to a close. Ensuring that all of your previous debts, your assets, your long-term care needs, and your various accounts are in order is an overwhelming task for any one person.

Similarly, when prepping for continuing education, many of the same circumstances can hold true. Attending school typically invites debt acclamation and other expenses. No matter how organized you are, some things are bound to fall through the cracks. Better to be safe than sorry.

The Bottom Line

Having certified, professional advice does not mean you are incapable of handling your own money. If anything, rest assured that seeking the help you need is a sign that you acknowledge the benefits of licensed aides guiding you toward your ultimate goals.

It doesn’t matter if you are seeking financial independence, you have experienced a sudden life change, you are overwhelmed by a mountain of debt or you are planning the next chapter of your life. No matter how comfortable or uncomfortable you are with managing your own finances, there is no harm in talking to someone to make sure you are on the right path.

Questions? Comments? 

Share your thoughts below.

Brian Thomas is an experienced writer focused on sharing content within the fintech, personal finance, and business management communities. He aims to provide readers with insightful knowledge in t...
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    Jerry W. Investor from Thermopolis, Wyoming
    Replied 27 days ago
    Brian, Good article. Can you give some ways that a person could find and vet a good advisor that can tailor their approach to an individual need? I tried a life counselor awhile back, and while expensive it was well worth it for me. How does one pick a good financial counselor?