When Should I Hire a Financial Advisor?

Do you have one of the 3 situations that call for a financial advisor (financial complexity, an unexpected major financial change—or planning for one)? Watch the video to learn more.

(The video is 3 minutes. Full transcript is below.)

Full Transcript of video

Hey friends, the Fearless Advisor here. Today I am going to discuss when to hire a financial advisor.

Hiring a financial advisor to support you and your family is a big decision and should not be taken lightly. You will research advisors online, ask your friends and family who they use, and interview several advisors to find the right match for your needs. But when should you begin the process of looking for an advisor?

Situation #1: Financial complexities are weighing on your mind.

I see three different situations that suggest you will want to begin the search for a financial advisor. The first situation is where you realize the financial complexities of life are weighing on your mind, but you do not have the expertise to pull all the pieces together. In addition, you have the financial capacity to hire someone to help simplify these complexities. The financial complexities I’m referring to are investing, saving for retirement, tax planning, insurance, estate planning, cash flow planning, and more.

In my experience, you fit here if you are a busy couple, family, or business owner earning an income over $100,000 per year and saving for your future. In addition, you have a basic understanding of the effects of debt, saving, and spending on your long-term net worth and financial goals. You have a good idea of where they want to go but need help getting there.

Situation #2: Unexpected major financial life change (inheritance, legal win, etc.)

The second situation where you would want to look to hire a financial advisor is when you have an unexpected major financial life change. This could be from an inheritance, payout from life insurance, or winning a legal case. Unfortunately, the causes of this situation are created from a loss of a loved one or a serious injury. However, this is exactly why you need help from an advisor to help you make the best decisions at the right time. For example, you should not be making major financial decisions while in the early stages of grieving your loss of a spouse.

Situation #3: Planning for a major financial life change (retirement, job change, etc.)

The third and final situation for hiring a financial advisor is when you are planning for a major financial life change. The primary examples here are changing employers, planning to retire in less than five years, or preparing to sell your business. All three examples have unique variables to consider for maintaining cash flow, managing taxes, and making good short-term decisions that do not blow up your long-term goals.

Not in one of these 3 scenarios but seeking a financial advisor? Consider financial coaching instead.

If your situation does not fit into one of these categories but you would like some assistance building your financial foundation, you may consider working with a financial coach or using proven strategies from Ron Blue or Dave Ramsey. These folks will help you get started building positive financial habits.

If you have questions about hiring a financial advisor, please use this link to schedule a meeting with us. Thanks for joining us!

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