When to Hire a Financial Planner

July 05, 2021 by First Federal Bank

plannerNo matter where you are in life, handling your personal finances can be a complicated and overwhelming task. One way to get the advice and assistance you need is to consult with a financial planner. These professionals are trained and certified to give you expert advice on how to make the most of your money. If you’re not sure whether seeking out a financial planner is the right move for you, here are four scenarios where you might benefit from hiring one:

For specialized expertise

“Not everyone has time to be a financial expert,” Troy Segal points out in an article for Investopedia. If wrapping your mind around complex financial products or tangled tax laws seems like too much to handle, a financial planner can do all this work for you, cutting through the jargon to give you clear information and counsel on taxes, retirement planning, investing, budgeting, debt, and many other money-related topics.

For major life events

Major life events have the potential to drastically change your financial outlook and goals. Writing for CNBC, Megan DeMatteo notes getting married or divorced, welcoming a child, purchasing a house, losing a job, starting a business, and retiring are just a few of the many milestones that might prompt you to rethink how your finances are set up. A financial planner can help you navigate any or all of these changes, providing you with the advice you need to make the best of your new situation.

For strategizing and setting goals

Even if there’s not one specific event that has changed your finances, it’s important to be prepared and to proactively plan for the future. A financial planner can help you set and reach intelligent goals for your finances at all stages of life, from college to retirement and everything in between. If you’ve been wondering about things like what kind of retirement account to use and how much to contribute, how to minimize your tax bill, how to save for your children’s education, or how much investment risk you should take on, professional advice will help you settle on the right strategy.

For objective perspective

Personal finance can be a fraught topic, and it’s not always easy to be objective. A good financial planner will help you remove emotion from the equation, think about the long term, and look more dispassionately at your situation. In an article for NerdWallet, Andrea Coombes recommends consulting a fee-only financial planner to obtain the most objective advice. Some financial planners make money by representing an employer’s interests or by selling certain financial products and receiving commissions. However, fee-only planners are only funded by what they charge you for their services. This eliminates any conflict of interest and ensures their advice will only be offered for your benefit.

Whether you’re already savvy about money matters or have no idea where to get started, hiring a financial planner might be the solution you need. If you’re facing major changes, looking to set goals, or in need of specialized advice, consider seeking out one of these professionals and the guidance they can offer you.

Categories: Personal Banking, Financial Education

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