When it comes to people using financial advisors, you may not consider yourself to be the right demographic. However, you may be surprised to find that there are many advisors who cater to retired non-millionaires. There are many reasons for young people to consult their financial advisors before reaching retirement age.
If you’re wondering if it’s the right time to talk to an expert about your financial life, here are five signs that working with an advisor now could benefit you.
Sign #1: Need help setting personal and financial goals
It’s hard to get anywhere if you don’t really know where you’re going. The same applies to your financial life! The hardest part of achieving your long-term financial goals is figuring out exactly what you want.
Believe it or not, a financial advisor can help. Your advisor knows everything about you: what you do for work, the key players in your life, your bucket list, your fears, and your personal values. Then sort all this information into turn it into a specific goal for your personal and financial life.
Once your goals are established, you can use them as the driving force for all your financial decisions moving forward. This is a huge benefit as it puts the focus and reason behind your wealth. Without a clear goal, it’s easy to get distracted by day-to-day market movements and short-term turmoil. But by focusing on the future, you can better tune out the noise and align your decision-making with your long-term vision.
Sign #2: You’re Ready to Create a Retirement Savings Plan
Similar to sign #1, retirement is about knowing where you’re going so you can make the most of the journey ahead. This is another area where a financial advisor can help. Turn dreamy retirement fantasies into realistic savings plans.
If you’re wondering when you want to retire and how you want to spend your time, you’re ready to get serious about creating a retirement savings plan. The great news is that it’s never too early to start thinking about retirement. The sooner you increase your savings, the longer you will have to increase your contributions.
But with so many retirement investment and savings options, it can take time to decide which option is right for you and your long-term goals. ) or 403(b), IRA, Roth IRA, HSA, Brokerage Account and more, we combine a variety of tools to help you create a comprehensive retirement savings plan tailored to your needs.
Sign #3: You are or will be undergoing a major life change
A significant life change often triggers a financial check-in or restructuring.
For example, if you have a childcollege plans, life insurance, childcare costs, and other new financial considerations may overwhelm you.
If you want to move out of state (Or to another country!), which can also have a significant impact on your financial situation. For example, if you move to places like New York or California, the cost of living will be much higher. When going abroad, you should consider potential foreign taxes, visas, travel expenses, additional insurance, etc. Without proper planning, moving to a new location can affect your ability to reach your savings goals.
Whatever the exciting (or nerve-wracking) change, a financial advisor can help you navigate the hurdles and adjust your financial plans accordingly.
Sign #4: You’re trying to minimize your tax liability
Taxes can be one of the most important financial obligations in your lifetime. That being said, a sound financial plan should include tax planning. Especially for high income earners, a tax plan is important to reduce your tax liability and put more money in your pocket.
Full-year tax planning includes conversations with both your financial advisor and your CPA. Alongside these professionals, you can minimize your tax footprint and focus proactively on making your money work better for you and your goals.
You and your financial advisor can consider tax-focused strategies such as:
- Upper deduction or lower deduction
- charitable donation
- Harvesting tax losses
- tax-effective investment account
- loss transform
Sign #5: You are ready to create a comprehensive long-term investment plan
If you want to build wealth, you have to make money while you sleep. Investing is therefore the bread and butter of financial planning.
You may have dabbled in opening a brokerage account or tested the waters with a robo-advisor. But the truth is that your investments should be considered along with all other parts of your financial life. Build a diversified portfolio using strategic, long-term investment strategies Things are essential to growing your money over time to reach your long-term goals.
When does a financial planner come in? Not only can they create a customized long-term investment plan, but they can also help you make sure you execute on it. They tend to make decisions.
But withdrawing money from the market at the first sign of trouble or following the latest hot stocks are easy ways to throw your financial plans off track. It has recovered from a period of high volatility and continues its upward trend over time. It’s the long-term growth potential that advisors can help clients with.
So what do you think? Did any of these signs sound familiar to you? If you think it’s time to learn how an advisor can help guide your financial life in an exciting, goal-oriented direction. teeth, our doors are always open.
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