Why Hire a Financial Advisor?

Most people have a hard time talking about money. A reason can include not having financial literacy. Hiring a financial advisor is not only for the rich. A financial advisor can help you get on track with your financial goals and give you peace of mind with your money situation.

Consider the following before deciding if a financial advisor can work for you/is right for you. Financial advice generally costs 0.5%-1% of your portfolio annually. An individual wants to ensure that the fee is worth the advisor’s advice and the growth of their investment portfolio outweighs the fees paid.

Depending on the scope of advice that you may need, you can hire a financial advisor for a one-time or full-time basis. Getting financial advice on a one-time/short-term basis means an advisor can help you build a plan or answer a specific issue or question. The other is hiring a financial advisor on an ongoing basis to ensure your financial situation is managed full-time.

Some examples on when a long-term financial advisor may be useful to you:
-You are young and not sure where to start
-No time to manage your money
-Nearing retirement (Are you ready to retire? What is the process of withdrawing retirement accounts?)
-Self-employed

One-time/Short-term examples:
-Come across a major life event such as marriage, having kids, or buying a new house (Any time there is a major life event that happens, there’s a financial impact)
-Budget is tight, but you still want to know what a planner can recommend in your financial situation
-Have a specific question/planning need; for example, what to do with an inheritance you received
-Ensure that you are on the right financial track and to review your current situation

It is crucial to assess your own comfort level of financial management and ask yourself what questions you want to be answered. This will help to figure out what you want out of a financial advisor and start from there. A financial planner can help you make better financial decisions and have a better understanding when it comes to your finances.