Four Signs You Should Consider Working With a Financial Planner

Joel Johnson, Contributor, Forbes
September 13, 2017

Consider the following scenarios: You’ve worked hard all your life, been careful with your finances and are now looking forward to retirement. You have a general sense of how your assets are performing but could use some additional guidance. Or, perhaps you haven’t been much of a saver and you are now playing catch-up and have fears of running out of money in retirement. Both scenarios are ideal for consulting with a financial advisor. Yet — many people don’t.

Perhaps there is an underlying fear that they don’t have enough money to even qualify for speaking with a financial advisor, or that they are in such bad financial shape that it makes no sense for them to reach out to an industry expert. The important thing to remember is that if someone is willing to take the step to meet with an advisor, it can be advantageous for them to do so, as they might pick up a few tips and strategies they would not have otherwise been exposed to.

So… when does it make sense to work with a financial advisor? In a 2014 survey, people ages 50-59 were only saving $78/month towards retirement, and another 50 percent that were questioned think they needed less than $500,000 in retirement savings to be financially secure. These are scary statistics, and saving this little each month does little for retirement security; you would be looking at working until 70 or 75 to ensure you had a solid nest egg built up. 

With that in mind, you should consider working with a financial planner if:

1. You have concerns you may run out of money in retirement

This is the number one concern of Americans when they discuss retirement: Do I have enough? What is my ROI? How much do I need to be saving to live the retirement I envision?

2. You would benefit from a structured retirement income strategy.

For some people, it is better for them to have a concrete plan when it comes to their finances and future goals. This type of plan helps decide what part of your money you are going to spend first in retirement, what accounts can be left alone until later and what (if anything) you plan to pass on to family members.

3. You want help investing properly for and in retirement.

Once someone comes up with a good retirement income plan, then it’s a matter of matching their investment strategy to that plan. A lot of people get this backward and start focusing on their investments first, without having a plan in place.

4. You want to have confidence in your financial future.

People who seek out financial advisors do so because they want to feel more prepared and remove some of the fear from their future.

Financial planners aren’t just for people who have money or people who already have a strong sense of their finances and retirement plan. Financial planners can also be an excellent resource for people who don’t have a good sense of their finances and are lacking a plan. They offer unbiased, expert advice and can open your eyes up to tips and strategies you might not have been aware of. As all financial advisors have their own style, do your research to determine which one is the best match for you and your needs. You go to the doctor to ensure you are in optimal health; why not go to a financial advisor to ensure your finances are healthy, too?


This article was written by Joel Johnson from Forbes and was legally licensed through the NewsCred publisher network.

The views of the author of this article do not necessarily represent the views of First Republic Bank.