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8 Situations When You Should Hire a Competent Financial Advisor

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If you dream of a secure and financially stable future, you must realize that you would require expert planning. A lot of people like to keep themselves up to date with the market. However, despite possessing the financial acumen to handle monetary matters on your own, getting professional help can sometimes be a better alternative. Money can be more complicated than you think. With consistently changing market dynamics, investment scenarios, rules, and laws, it is advisable to get a professional on board than suffer consequences later.

Here are eight common situations when you would need a competent financial advisor:

  1. When you are at or near your retirement age
  2. Retirement is undoubtedly the golden period of your life. However, it is also a time when you will have some of the most pressing concerns. You will need to figure out multiple things. These include having a stable source of income, Medicare and other health insurance, assessing investment risk, withdrawing Social Security benefits, saving for pension plans, considering retirement savings options like a 401(k) account or an individual retirement account (IRA), etc.), and more.

    Moreover, estate planning will also require more attention than before. Each of these complicated areas will need expert financial acumen to ensure that you make the most of your retirement planning. In such a situation, hiring a financial advisor is equivalent to investing in a secure asset for the future. These experts will enable you to navigate the unique challenges of retirement with utmost ease.

  3. When you get a significant promotion
  4. Promotion is not only a time to celebrate with friends and family, it is also a period to reflect on your financial decisions for the present and the future. When you get a raise, your income increases. This implies that you need to contribute more to savings for the future. But with so many options, it is hard to pick one that offers the most value for your money. In such situations, hiring a financial advisor can provide you with the much-needed help. Financial planners can help identify lucrative investments, retirement savings options, and other areas that can be used to increase your overall wealth and secure your future financial position.

  5. When you receive an inheritance
  6. Receiving an inheritance is not all that simple. In the U.S., inheritance laws govern how you receive your share of assets, property, etc. These laws also specify which relatives have a statutory right to file a claim, even if they are not included in the terms of the will. Other than this, you will face tax liabilities, complex procedural formalities, and more. You will also find yourself confused as to where to invest your bequest to benefit you in the best possible way. Furthermore, you might have been directed by the giver to take care of some specific final financial wishes. All these newfound money alterations will need expert insight to deal with. And a skilled financial consultant can offer fruitful advice in this regard.

  7. If you are going through a divorce
  8. A divorce does not only cause changes to your personal life or impact your emotional health, it also significantly influences your financial position. More so, if you have shared finances with your spouse. Matters like joint tax filing, Social Security benefits, pensions, retirement savings contributions, child education plans like the 529 account, etc., can be impacted when two people separate. Moreover, there will be a distribution of assets, children’s financial responsibility issues, and other related matters that would require a more professional approach. Hiring a financial guide in such cases can help you get through this emotionally and financially challenging life situation. You will be more in command to understand who gets what, how you can protect yourself, and how you can relocate your assets.

  9. In case of a major life-altering event
  10. A lot of incidents in life can alter your monetary situation. These events include buying a new home, having a child, selling your house, getting married or divorced, adopting a child, suffering from a critical disability or long-term illness, losing your job, etc. Such life-alterations can not only have an emotional impact on you, they can also considerably influence your economic status. You would have to realign, restructure, reassign, remove, and refurbish a lot of financial details to secure your position. In all of these situations, a wise money planner can help you make informed decisions.

  11. While managing your investments
  12. You might assume that you have the financial acumen to handle your monetary matters, but not all money-related issues are simple. Investments, especially market-linked assets, such as stocks, bonds, mutual funds, annuities, etc. can be difficult to manage on your own. Moreover, owing to limited exposure and expertise, you might be overlooking substantially beneficial investment options. By hiring a financial advisor, you are employing an investment professional to provide you with the best possible options to promote better returns.


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  13. When you have a complicated tax situation
  14. Tax-issues can get very intimidating. You might end up paying a considerable amount of charges because of the sheer lack of tax-saving knowledge. Moreover, if you have a complex tax situation like a divorce, mixed nationality, remarriage, growing family, pending educational expenses, real-estate investments, foreign holdings, a large estate, or semi-retirement, etc. you might need to brace yourself to face more compound tax laws. In this event, there is a high probability that you will make decisions that do not ideally work in your favor. Hence, to avoid such complications, it is advisable to seek guidance from a finance professional to save money in taxes and evade penalties.

  15. If you wish to invest in your child’s education
  16. Education is a basic need, and it is a fairly expensive one. However, it is possible to effectively manage this enormous expenditure without hurting your pocket. Hiring a financial advisor can help you understand the benefits of investing in tax-advantaged savings plans such as the 529 account. These plans support parents to save for educational costs while availing hefty tax benefits. A monetary expert can provide guidance on how to use this fund to earn tax deductions and enjoy tax-free money growth and withdrawals. The consultant will also offer you specialized assistance in assessing your needs, directing the fund to the right source, applying for 529 benefits, following withdrawal rules, assessing accounts, maintaining a record of expenses, and filing all receipts for tax filing and future references.

To sum it up

Other than these situations, you would also need a competent financial advisor if you wish to plan for long-term health care or consider buying insurance for the future. In all conditions, a monetary guide will work with you to understand your future financial goals and current life situation. And then, accordingly, follow a holistic and proficient approach to ensure that things work in your advantage. However, it is important to conduct conclusive research and hire a financial advisor with a fiduciary approach towards the relationship and who has sound financial knowledge and valid licenses.

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The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.