When Is It Time to Hire A Financial Advisor?

When Is It Time to Hire A Financial Advisor?

What many people don’t seem to understand is that the benefits of working with professional financial planning services far outweigh the disadvantages (if any). Money-related troubles are the leading cause of stress in the US, and one of the most effective ways of alleviating that stress is hiring a financial advisor. Even if you might be putting it off currently, you will inevitably have to hire a financial advisor in order to invest in your future. But how do you know when it’s time to approach one?

This piece is a useful guide that will enable you to determine when it’s time to hire a professional financial planner, so let’s dive right in.

When is the Right Time to Hire a Financial Advisor?

In an ideal world, each and every person would have a competent and experienced financial advisor by their side to inform and guide them about the soundness of an investment decision or a relatively big purchase.

As a general rule, there are perhaps three main reasons for when you should consider hiring a financial advisor.

1.      You Need Professional Help Planning Your Financial Future

This is probably true for most of us when starting out. We all have so much on our plate with multiple financial goals competing with each other for limited financial resources—paying off student loans, saving for an emergency fund, buying a house, getting married, taking a vacation, etc.

If your emergency fund has you somewhat comfortable and if you can afford a financial planner’s fee without going into debt, then investing in a financial advisor is a good idea, especially if you need help with your finances.

2.      You’d Rather Not Deal with Money

Many people abhor managing their own finances. They have so many other things vying for their attention that having to deal with calculating the pros and cons of certain investments becomes far too much to handle. This is completely fine as long as you have someone you can trust to do it for you. In this case, hiring a financial planner is pretty much a no-brainer.

A person meeting their financial advisor.

3.    You Value an Impartial Third-Party’s Opinion on Your Finances

There are a significant number of people who are reasonably good at investing without ever hiring a financial advisor. Many of them think that if they like doing it themselves and if they’re fairly good at doing it themselves, then why spend money on hiring someone else and reduce their returns?

There’s nothing wrong with that line of thinking. But the thing is, no matter how much you learn and how good you become at investing, you are always susceptible to making irrational decisions. If hiring a financial planner prevents you from making a bad investment decision a year, or if they spot opportunities you may have overlooked, then the chances of your investment returns going up are much higher, despite whatever they may charge.

Steven J Gillespie (QCVS) is an international independent personal financial advisor who has gained a wealth of experience working with numerous foreign nationals living and working in South America. If you require investment planning & advisory services, education fee planning, income tax planning services, retirement planning services, and more in Santiago, book a free consultation with SJG Financial Services today.

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