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When Should You Hire A Financial Advisor?


There is a widespread assumption that financial advisors are only valuable for the wealthy, but that’s often not the case. Anyone can benefit from the advice of a financial advisor, whether you’re looking for different wealth strategies, require SMSF financial advice, or need to re-evaluate your future financial plans.

However, hiring a financial advisor is an investment, and whether or not it is worthwhile depends on various factors, including your priorities and financial stability.

So, if you’re considering hiring a financial advisor, here’s a brief guide on financial advisors, when’s the best time to hire one, and if hiring a financial advisor is worth it for your circumstances.

What Do Financial Advisors Do?

A financial advisor is a professional who can assist you with wealth management and developing and implementing a financial plan for your life, which can be broad in scope or tailored to a specific goal.

Some of the services that financial advisors provide include:

  • Helping to assess your current financial situation and future goals.
  • Setting up an investment account to invest your funds for you.
  • Creating a detailed plan that helps to address your primary financial concerns, such as retirement, education planning, insurance, taxes, and so on.

Do You Need A Financial Advisor?

Strictly speaking, not everyone requires (or can benefit from) the services of a financial advisor. Having one can be beneficial if you are about to make a significant financial decision or have a complex financial situation.

In brief, If you are unsure about how to best manage your financial future, find money management and planning difficult, or require a third-party opinion on how best to manage your finances, then hiring a financial advisor can be of great help to you and your future.

When Is The Best Time To Hire A Financial Advisor?

You Are Having A Significant Life Event

Financial changes and life events often go hand in hand, and certain events can often prompt people to reach out and seek solid financial advice. The following are everyday events that may have you reaching out to a financial advisor:

  • Marriage – combining finances can be complicated, and you need help learning how to handle finances as a couple.
  • Divorce/Widowhood – you may need to re-evaluate your financial situation as a single person.
  • Parenthood – with children comes changes to your expense structure and other concerns such as education savings and life insurance.
  • Inheritance – you’re unsure how to make the most of your recent windfall and need external guidance.
  • Business Ventures – whether you’re starting a business or managing recently acquired assets, hiring a financial advisor can help ensure your company’s finances are in order.
  • Purchasing A Home – you’ll want to know how paying for a home will affect your finances in the short and long term.

­Your Finances Are Becoming More Complex

As you get older, your finances will naturally become more complicated, with higher earnings, life insurance, pension plans, and so on. With this added complication, you may find managing all aspects of your finances increasingly difficult.

As a result, hiring financial advisors to assist you in expertly navigating your complex economic life can be a significant boon to your quality of life.

A good financial advisor will save you time and money and help optimise your investments, lower your risks, and educate you on current and upcoming financial policies that can benefit you in the long run.

You’re Short On Time Or Expertise

Managing your finances and investments can take significant time, especially if you are unfamiliar with them.

If you want to start an investment portfolio but don’t have the time or insider knowledge to manage it, you can hire an advisor to manage it for you, minus the significant decisions which will still be left up to you.

Investing can be a complicated topic, so if you’re not comfortable making investment decisions, a good advisor can help with market research and investment advice, simplifying the process and assisting you on how to build a diversified portfolio.

You Need A 3rd Party Opinion About Your Finances

Even if your finances are in order, the ability to discuss them with someone else may be the most valuable reason to hire a financial advisor.

Their knowledge and experience may be able to provide you with an option you haven’t considered yet. A financial advisor can also offer a more clinical review of your financial profile and can let you know if there’s anything worth prioritising,

You’re Nearing Retirement Age

If you plan on retiring soon, it can be beneficial to consult a financial advisor regarding a retirement strategy that ensures you have enough financial security well into your twilight years.

A financial advisor can assist you in determining your future retirement saving plan by analysing your expenses and saving and identifying any potential gaps in your retirement plan.

Do keep in mind that you don’t have to be of retirement age to seek the help of a financial advisor to get started on your retirement savings!

Is A Financial Advisor Worth It?

Ultimately, you are the best person to decide whether or not to hire a financial advisor. While there are some common reasons for wanting to hire a financial advisor, each person’s financial situation is unique, so the value you may receive from a financial advisor will vary depending on your circumstances.

Working with a financial advisor can be highly beneficial if you have difficulty making financial decisions or are just starting your financial journey. Even if your finances are already in good shape, getting a second opinion from a financial advisor can help you optimise your finances and improve your prospects.

Finding The Right Financial Advisor For You

We hope you found this guide useful in your financial management journey!

If you’re keen on getting good financial advice, be sure to do some research on your local wealth management firms before deciding. The right financial advisor understands your goals, has worked with clients in similar situations, and most importantly, puts you at ease and is completely transparent with you.



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