Financial advisers, often interchangeably used with the term financial planners, are professionals who assist with wealth management and personal finance decisions. They offer a variety of services, including asset management, tax preparation, and estate planning; and their expertise ranges from answering queries about insurance to setting out a comprehensive money-management plan.
Changes in tax rules or other legislation, as well as shifts in offerings from your financial institutions, can impact your money situation. You’ll also need to keep up with the latest products and trends if you wish to manage your finances on your own.
An adviser can take care of this research for you, saving you time and simplifying the investing process. Part of his or her job is to explain what’s involved in achieving your long-term objectives.
Here are three questions that could help you determine whether or not you require the services of a financial adviser.
1. Do you lack confidence in money management?
Financial confidence is an overview of specific behaviours such as active saving, tracking, and purchasing habits. These include having self-control over your spending, a healthy cash flow and manageable liabilities, and the ability to plan for the short- and long-term.
If you lack these qualities, you should seek the advice of a financial expert.
2. Are you looking for retirement guidance?
In the past, people would plan for 15 to 20 years of retirement. But with increased life expectancy owing to advances in healthcare innovation, it is possible to live well into your 90s.
Hence, if you wish to retire at 55, you would need to plan for at least the next three decades and make sure you have necessary funds for your living needs when the time comes.
One of the best strategies for efficient retirement planning is re-evaluating your savings and investments on an annual basis, and exploring new opportunities. Here’s where hiring a financial professional can help.
3. Are you trying to get out of debt?
A financial adviser can help you with debt management by helping you map out your cash flow and detect existing and/or future problems.
Some people may find it intrusive to have a stranger evaluate their spending patterns and financial mistakes, and clients should be aware they may be confronted with some difficult truths.
But once you overcome this stumbling block, a financial adviser will be able to create a new and balanced budget that covers your requirements while not adding to your debt load. This usually entails eliminating unnecessary expenses so that any extra income can be used to pay off your debts.
In short, do not be afraid to ask for professional help with your finances as the benefits will, more often than not, outweigh the costs.
This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.