When to look for expert financial advice

When it comes to looking for financial advice, most people shy away from it. They assume that it’s going to cost them further money when they are already in a financial crunch and can’t afford to give away any more money. Most people think that financial advisors are only for the rich.

Well, you are assuming wrong. Yes, the financial expert will have to be paid. But he will make up for the payment by saving you thousands of dollars in taxes and fines. Especially when you are in the middle of a big change.

You can also look for a government employed financial expert. This will not only cost you less, but he will also help pave the way for better financial future.

When to look for expert financial advice

Here’s when you should start looking for expert financial advice:

A personal change

Personal changes require a lot of your energy. Some changes make you happy, some stress you out. In both cases, finance is probably the last thing you think about.

If you’re getting married in the near future, having children, getting a divorce or even getting a new job, you should get in touch with a financial advisor.

Go over your financial situation. If you are going through a marriage or a divorce, our financial advisor will help you decide the best course of action to share or unshare your money without letting finance cast a bad shadow.

Also when you are going to a baby, you need to review your financial situation impartially. Discuss budgeting and child care options. Map out your financial future with your advisor.

When it comes to personal change, usually the last thing you think of is financial matters. Your financial advisor will help you focus on your personal life while he deals with the money part.

When you are making a big financial decision

Buying a home? Going through a foreclosure? Looking for investment options? These are all the times you should be looking for a financial advisor, especially if this is your first time. There’s a lot of money involved.

A financial advisor will help go through all the documents. You can also ask him to put the documents in order. He will review the entire terms and conditions and advise you on the best course of action. Your financial advisor might even save you money by negotiating deals or offering you a better option.

When you are in a financial crunch

This is often the last time when people look for a financial advisor. I understand that you don’t want to spend more money with a financial advisor. But your financial advisor is going to stop you from wasting any more of your money.

If you have hundreds of dollars in a loan, your financial advisor will create a plan for you to pay off the loans in the most economical way. He will consolidate your payment plan or chose the snowball method to help you save money on interest payments. In either case, his plan will help you create the blueprint for getting you out of the problem.

If you are not in the position to hire a financial advisor, you can ask for government assistance or look for online options like

When you have money in your bank

If you have a good amount of savings in your bank, but no plan on how to use it, hire a financial advisor. You don’t want to spend all the extra money on buying an expensive luxury car. Don’t spend it all.

Also, your money sitting in a bank is no good use to you unless it is making you more money. That’s how 90% of rich people are rich. They get their money to make them more money. That’s called a passive source of income.

Your financial advisor will help you plan out a passive source of income for you. He will help you decide on a high-interest saving account. He will create an investment plan for you. Basically, your financial advisor will offer you the best investment method based on your income and your savings.

You could do this on your own but when you hire a financial advisor, you can relax knowing that an expert is going to help you out. He will probably give you a higher return on your money, than yourself. And then you can focus on making money.

What to look for in a financial advisor

If you are going through any of the above situations, and you are looking for a financial advisor, then there’s what you should be looking for in a financial advisor:

  • Recommendations: Start with your family and friends. Ask them if they know a good financial advisor. Even if you choose one from the internet, carefully go through reviews. Ask him if he can provide recommendations.
  • Certifications: Anyone can pose as a financial advisor, but the real ones have experience and education. Some certificates to ask for are ChFC, CFP, CPA, and CFP.
  • Experience: Ask for his experience. Remember to look for a financial advisor who has experience with your particular requirements. If you are looking to invest, talk to an investment banker.
  • A good relationship: A financial advisor might look very good on paper, but when you finally meet him you don’t feel relaxed. Trust your instincts. If you feel uncomfortable, figure out what’s making you uncomfortable. Find someone who is easy to talk to and gives you his time and attention.
  • Compatibility: Your potential financial advisor might have all the above-mentioned qualities, but he doesn’t click, it’s a good idea to look for another option.

Once you narrowed down your choice to a financial advisor, you might have to sit down and talk to your financial advisor. Your financial advisor should be able to understand your goals. Explain him why you need a financial advisor and what you are looking when you hire one.

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