If you can afford to get advice from an expert, you probably should. Even if you think you cannot afford it, you might want to consider doing it anyway because it can help tremendously.
Let’s examine a few instances when an expert can come in handy.
When You Get Your First Job
If you have graduated from college or university and finally nabbed your first job this is a great time to seek help from a financial advisor. If you start budgeting today and saving properly, you will set yourself up for a much better future.
I always recommend looking for a fee-only Financial Planner. Financial institutions have Financial Advisors, however these people have sales quotas. Their goal is to sell as many financial products as they can. Financial products you may not need, like insurance, or costly savings vehicles like mutual funds with deferred sale charges.
When You Get a Raise
Anytime you get a raise, take the time to talk to your financial advisor to see if there is something you can do with the raise money that makes more sense than spending it. If you’re already meeting your needs, you may want to put the raise away for the future or add more to your debt -if you have any- to get it paid off faster.
When Buying a House
If you’re planning to buy a house or make any big expenditure, it’s a great time to see your financial advisor. They may give you advice that buying a house now is a good idea or a bad idea. It will depend on many factors but having the word of an expert can help you make better choices. If you decide to buy have the right realtor to assist you, as well as a lawyer. You can also use a mortgage broker, although it’s not mandatory.
When You Get Married or Move-in Together
The best time to get financial advice in your life is before marriage, or before moving-in together. The main reason is that if you both go to a professional, you can get on the same page now. This will avoid problems later. It might also open both your eyes to your differences and where you both really stand financially.
Before You Have Children
When you start a family, your expenses will increase for years to come. While most people tend to have kids without much thought to their financial future the fact is, kids are expensive. If you do decide to have children, you will also need to get your legal affairs in order, should something happen to you. A lawyer will help you with a will and other directives. An insurance broker can also help you determine your life insurance needs.
If Your Wealth Drastically Changes
If you receive an inheritance, win the lottery, or become a successful actor or businessperson, seeking help from a financial advisor can make all the difference in your ability to hang on to the windfall or manage your new wealth in a way that makes it last. You’ll probably need a lawyer and an accountant as well.
When You’re 20 Years from Retirement, or Closer
Thoroughly reviewing your retirement portfolio and strategy when you’re at least 20 years out from retirement can ensure you’re on the right track. Then you should probably get more advice each year after that to ensure that things are working out and going in the right direction.
It’s even more crucial if you have very little or nothing saved.
When Your Financial Planning is Too Emotional or Random
If trying to plan your financial future is too stressful for you and your family, having an advisor who is not personally invested in your emotional lives, can help weed out the problems, fix your financial situation, and lower the incidents of fights.
The same applies if you don’t know what you’re doing, or if you financial knowledge is insufficient. Having a professional look into the matter will avoid costly mistakes.
If you make it a regular part of your life to seek advice from experts periodically to ensure that you’re still on the right path and making the best choices, you’ll be much more likely to reach your goals.
However, keep in mind that no financial advice can replace the education you get about finances yourself. Therefore, never turn it over to someone else entirely. Learn to do things on your own so that you can make truly good choices for your situation.