6 Signs You Need a Financial Advisor To Build Wealth
Written by
Justice Petersen
Edited by
Chris Cluff
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When handling your money, sometimes you may want to leave it to the professionals. If that’s the case, you can work with a financial advisor who will help you plan and achieve financial goals and offer guidance on handling your money and building your wealth.
To become a financial advisor, one is required to complete training and earn registration, so these are highly qualified individuals when it comes to working with you and your finances.
Sometimes, if you’re facing a financial conflict or trying to figure out how to build wealth, you might not know whether you require the help of a finance expert. Here are the common signs that will determine whether you need a financial advisor.
Significant Life Changes
One of the biggest signs you need a financial advisor is if you’ve recently faced any significant life events that may affect your money. These events could include getting married, getting divorced or the death of a family member or spouse.
“If your previous advisor primarily communicated with your spouse, it might be time to find your own advocate,” said Hazel Secco, president and founder of Align Financial Solutions, LLC. “A one-sided relationship with a trusted advisor can be disheartening, especially during times of emotional and financial upheaval.”
You’re Approaching Retirement
Retirement is another significant life event that may impact your finances, especially during the five years before and after retiring. Working with a financial advisor to create a strategy for yourself during this time could make a huge difference.
“For instance, deciding how much to contribute to your pre-tax versus after-tax accounts can greatly affect your future cash flow,” Secco said. “If you could maximize the value of your savings with the same amount of money, wouldn’t you take that advice? Timing and professional guidance are key, as implementing a well-thought-out strategy early on can help you reach your goals more efficiently.”
Investment Decision Confusion
If you feel confused or unsure about how to manage your investments, this is a telltale sign that you need the help of a financial advisor. A finance professional could even help you if you’re feeling overwhelmed by your investment options.
Growing Complexity
If you are starting to gain more income sources, or if you currently have multiple sources of income, this is a sign you may need a financial advisor who can help manage and keep track of these growing financial resources.
“If you have multiple income sources, own properties or own businesses, you may come across complex tax situations where you may not have enough experience to make educated decisions,” said Markia Brown, financial counselor and financial education instructor at The Money Plug.
No Time for Finances
If you find yourself with a busy schedule and can’t find the time to sit down and analyze your finances, seeking a financial advisor could help. Finding professional assistance could take away the stress and anxiety you may feel about not being able to take care of your finances.
Losing Sleep
Money concerns can result in high stress. If your finances are causing you so much concern that you’re losing sleep over it, then it might be time to hire a financial advisor.
“Some of the triggers that keep us awake and activated, such as nervous system reactions, anxiety and cortisol levels, can come up when we have money on the mind,” said Nathan Astle, client counselor at Beyond Finance. “This is especially true when coming from a place of desperation or feeling like we won’t be able to make ends meet. Even if you aren’t drowning, you can still experience these symptoms if you’ve had financially traumatic experiences in the past.”
Finding the Right Financial Advisor
As your investments and life become more complex, it will become more likely that you need a financial advisor. However, it’s important to know how to find the right person to help you.
“Keep in mind that anyone can call themselves a financial advisor, including people who only sell products such as insurance,” said Jay Zigmont, founder and CEO of Childfree Wealth. “Look for a fee-only, fiduciary, certified financial planner.”
Benefits of a Financial Advisor
If you aren’t feeling great about your financial situation, getting help from a financial advisor can relieve any anxiety you may be feeling. Additionally, working with an advisor means you won’t have to manage your finances alone. You also will be more likely to have more money saved for retirement.
“Working with an advisor can help shed light on your finances, which lowers some of the uncertainty and helps create a better place to start working on a strategy to help you move forward and grow into the future,” said James Grace, director of wealth management at Silver Pine Capital.
“We also know that when you are feeling stressed or anxious that’s not the right time to make big financial decisions,” he continued. “Working with an advisor can not only lower some of the stress and anxiety you feel about money, but clear a path for you to get to a place where you can make better financial decisions and provide the professional expertise you might need to evaluate your options.”
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