Is It Smart to Hire a Financial Adviso…

Is It Smart to Hire a Financial Advisor?

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Is It Smart to Hire a Financial Advisor?

Is it smart to hire a financial advisor? Many believe that financial advisors are too costly or that they are only for wealthy people. But, that’s not necessarily true. In fact, most people could benefit from working with a professional financial advisor.

Finding a financial advisor

As you begin looking for a financial advisor, it’s likely that you will be overwhelmed with options. The most important aspect of finding a financial advisor is understanding their different financial offerings and if they have reputable credentials. Every advisor has different strengths and demographics that they focus on. Some may have a specialty in retirement planning, while others focus on diversifying investment portfolios to optimize your ROI.

When is it time to hire a financial advisor?

There’s no one-size-fits-all when it comes to hiring a financial advisor. What kind of financial advisor do I need?

One-off financial advice

Sometimes, you may just need financial advice for a particular situation you find yourself in. Maybe your company has incentivized benefits if you retire early, or, maybe you’ve found yourself drowning in debt and need a clear plan to get out of it. These are times where using a financial advisor may come in handy, but you may not feel as though you need to build a long-term relationship with one.

Keep in mind that meeting with a financial advisor for a specific scenario may lead you to seek out more advice in the future.

Longer-term needs

Retirement planning, managing portfolios, planning for college, etc. are all examples are longer-term needs

Life events

There are specific life events that may have you seek out a financial advisor. Common events include:

  • Nearing retirement.
  • Getting married or divorced.
  • Inheriting money.
  • Managing parents’ money or retirement.

These events can cause financial stress. A financial advisor will have the knowledge of how to best approach and handle your individual situation.

What kind of financial advisor should I hire?

There are many types of financial advisors out there, but Senior Finance Advisor recommends that you find one that is a fiduciary.

What is a fiduciary financial advisor?

If your financial advisor is a fiduciary, he or she is obligated to act in your best interest at all times - even if it’s in contradiction to his or her interests. The Security and Exchange Commission directs that fiduciary duty also includes:

  • Acting with undivided loyalty and utmost faith.
  • Providing full and fair disclosure of all facts.
  • Disclosing and avoiding (when possible) all potential conflicts of interest.
  • Not misleading clients.
  • Not using a client’s assets for his or her own benefit, or the benefit of other clients.

The bottomline: Financial advisors are not just for the wealthy

While financial advisors are often seen as only necessary for the wealthy or those with many assets, like real estate or other investments, it’s true that a financial advisor can help almost anyone. From retirement planning to tax help to planning for a child’s college education, a fiduciary advisor can help you reach your financial goals.

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With our trusted network of advisors, we’ll connect you with up to three established planners in your area.

Find an Advisor Near You

Is It Smart To Hire A Financial Advisor

Is It Smart to Hire a Financial Advisor?

Is it smart to hire a financial advisor? Many believe that financial advisors are too costly or that they are only for wealthy people. But, that’s not necessarily true. In fact, most people could benefit from working with a professional financial advisor.

Finding a financial advisor

As you begin looking for a financial advisor, it’s likely that you will be overwhelmed with options. The most important aspect of finding a financial advisor is understanding their different financial offerings and if they have reputable credentials. Every advisor has different strengths and demographics that they focus on. Some may have a specialty in retirement planning, while others focus on diversifying investment portfolios to optimize your ROI.

When is it time to hire a financial advisor?

There’s no one-size-fits-all when it comes to hiring a financial advisor. What kind of financial advisor do I need?

One-off financial advice

Sometimes, you may just need financial advice for a particular situation you find yourself in. Maybe your company has incentivized benefits if you retire early, or, maybe you’ve found yourself drowning in debt and need a clear plan to get out of it. These are times where using a financial advisor may come in handy, but you may not feel as though you need to build a long-term relationship with one.

Keep in mind that meeting with a financial advisor for a specific scenario may lead you to seek out more advice in the future.

Longer-term needs

Retirement planning, managing portfolios, planning for college, etc. are all examples are longer-term needs

Life events

There are specific life events that may have you seek out a financial advisor. Common events include:

These events can cause financial stress. A financial advisor will have the knowledge of how to best approach and handle your individual situation.

What kind of financial advisor should I hire?

There are many types of financial advisors out there, but Senior Finance Advisor recommends that you find one that is a fiduciary.

What is a fiduciary financial advisor?

If your financial advisor is a fiduciary, he or she is obligated to act in your best interest at all times - even if it’s in contradiction to his or her interests. The Security and Exchange Commission directs that fiduciary duty also includes:

The bottomline: Financial advisors are not just for the wealthy

While financial advisors are often seen as only necessary for the wealthy or those with many assets, like real estate or other investments, it’s true that a financial advisor can help almost anyone. From retirement planning to tax help to planning for a child’s college education, a fiduciary advisor can help you reach your financial goals.

Related Articles: