You’re smart and driven but can’t be an expert on everything—especially personal finance. Sure, you know how to budget, pay your bills on time, and save for a vacation next year, but what about the bigger picture? Do you know how to move from just “doing alright” to building a nest egg, so you’ll survive and thrive in retirement?
A financial planner can help you think more than one or two steps ahead. Financial planners are experts on everything and anything relating to money. Unconvinced about the need to pay someone for counsel? The following five reasons will help you see exactly why a financial advisor is an investment worth making.
1. Planning for Retirement
You might be decades away from retiring, but it’s never too early to start considering your post-employment plan. What will you live on throughout your 60s, 70s, and 80s? Will you run out of money if you live to see your 90th or 100th birthday? Most importantly, will you have enough saved to enjoy your golden years, instead of just hanging on?
Your financial advisor will help you look ahead 10, 20, or 45 years to retirement and outline the steps you need to start taking now to secure a stress-free retirement:
- Establish financial goals as you approach retirement
- Calculate how much you need to cover expenses throughout retirement
- Identify and establish smart long-term investments
- Make plans to reduce tax burdens and penalties on investment accounts
We work our entire adult lives to reach “easy living” down the road, but it’s not easy living without smart financial planning and the help of an advisor.
2. Navigating the Investment World
Investing isn’t simple! Mutual funds, IRAs, stocks, bonds: Is your head spinning yet? You don’t need to become an investment specialist when you have a financial advisor to support and guide you.
A seasoned professional knows how to navigate the roller coaster of the investment world to protect your assets and help your money work hard. Your financial advisor will tackle investments from an objective point of view to make the most logical decisions for your wallet.
Read about micro-investing and how to get started with our complete guide: Micro-Investing: What It Is, Why It’s for You and How to Start.
3. Estate Planning
Most Americans don’t consider estate planning until they become sick or enter old age, but it’s an essential financial wellness component that deserves immediate attention. Estate planning involves making plans for the transfer of your assets after death. Your assets include everything from your home and vehicle to bank accounts.
Even if you don’t want to think about it, there’s no denying you need an estate plan. It protects your spouse, children, and other relatives or close friends by ensuring they all receive your desired assets. You definitely don’t want to leave your family in financial upheaval after your passing, so work with a financial advisor to make proper plans.
4. Anticipating Medical Needs
Medical costs are unavoidable as you get older. If you are one of the 133 million Americans with a chronic disease, you’ll ultimately need long-term medical care with costs that can run you into bankruptcy without sufficient financial planning.
Your financial advisor can offer insight into long-term medical care options. This isn’t something to ignore, considering a 65-year-old couple retiring now should expect to pay $315,000 toward medical expenses alone, according to Fidelity Benefits Consulting 2022 report. Imagine that figure in 20 or 30 years!
5. Improving Your Current Habits
Identifying your less-than-stellar financial habits without another set of eyes is challenging. Your financial advisor can quickly assess your current behavior and recommend more productive or profitable choices. Whether you need to pick up a second job, pay off your debt faster, or adjust the interest rate on your mortgage, a financial advisor is there to provide the guidance you didn’t know you needed.