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 Canaccord Genuity Corp.

Nine Situations Where You Should Hire a Certified Financial Planner

Delwin Graham & Eric Brown - Dec 18, 2020
Are you going through a major life change? Are you wondering if you need a financial planner? A certified financial planner can provide expert advice in a number of areas, including helping you invest money and your taxes.

Are you going through a major life change? Are you wondering if you need a financial planner? A certified financial planner can provide expert advice in a number of areas, including helping you invest money and your taxes. Becoming certified is a rigorous process. It requires standardized exams, years of experience, and high ethical integrity. Yet when should you hire a financial planner, and do you always need one?

Here are some situations where you'll want a professional in your court.

1.  You're Thinking About Retiring

Those getting close to retirement age usually enlist the help of a financial advisor. You may need help figuring out what your income will be after you retire and how much you've got saved.

A financial advisor can help you figure out the best way to start out your golden years and make sense of your assets and pensions.

2.  You're Changing Careers

A career switch can be an exciting time, but it may also bring with it some unexpected financial glitches. For example, if your income is going to increase, you could lose tax deductions or tax credits. You may also be losing some business write-offs.

In addition, you'll need to think about how you're budgeting and spending now that you have a new lifestyle. For example, if you're self-employed and skipping your commute, there may be ways you can save that will offset an initially lower income, or you may be moving into an office environment that will require new expenditures.

Major life changes like a career change should not be done on a whim. A financial professional can help you sort out the financial implications of your new income and lifestyle.

3.  You're Getting Divorced

Financial stress can be one of the biggest issues you face when you get a divorce. You'll need help distributing and relocating assets, including your home, fine jewelry, and savings accounts. You may also need help planning for separate financial futures.

In some marriages, one partner isn't accustomed to paying the bills, budgeting, or managing investments. A financial advisor can help you take an honest look at your assets and begin making a strong plan for meeting your own needs, as well as the needs of your dependents, in the future.

4.  You Inherit a Large Sum of Money

When you inherit a lot of money, it's important to invest it wisely. You may need help investing, creating a diverse portfolio, and making sure estate taxes are paid.

After you lose a loved one, you'll want to make sure arrangements are made and assets are distributed according to their wishes. You can then begin to think about the future. Investing in a financial advisor can help ensure that you make the most of what you've been given.

5.  Your Loved One Passes On or Becomes Injured

If your spouse or partner passes on or becomes seriously injured, your financial situation could change quickly. You'll want to minimize your taxes so that you can begin to navigate your new financial situation.

A financial advisor can help you figure out how insurance, estate issues, and asset management come to bear on your financial future. They can help you with investments and decisions so that you can remain financially stable during a difficult time.

6.  Your Family Is Expanding

There are many expenses involved in starting a family. Everything from education, living expenses, and insurance will now be something you need to plan for. A financial advisor can help you invest your money wisely so that your children's needs don't come as a surprise to you in the future.

7.  You're Just Starting Out

It's much easier to begin saving for your retirement when you're young than when you're older and want to retire soon. It's a great idea to see a financial advisor when you're a young professional with a nice income who's looking to invest their money well.

8.  You Want to Minimize Taxes

When you're saving for the future, you'll want to know about ways to invest your wealth that will minimize the amount you'll pay in taxes. A financial advisor can help you take a more diversified approach or keep your money in accounts that will allow you to withdraw it tax-free. They can help you weigh your options to make sure you get to keep more of what you've earned.

9.  You Want to Avoid Emotional Decisions

It can be easy to make financial decisions based on your emotions rather than your logic when you've got a lot invested. A financial advisor can help you avoid this pitfall and plan rationally for the future.

Advisors rely on data and can help clients stick with their financial goals. You'll want to make sure you simply aren't investing or selling because of your fears or emotional excitement.

Finding the Right Certified Financial Planner

The right planner for you will have a great deal of experience helping people manage their funds wisely. Ask your friends and family for recommendations or go online and read reviews from former clients.

Make sure your advisor is certified and has the proper credentials for helping you make sound financial decisions. You'll want to feel respected, valued, and confident in your advisor's depth of knowledge.

Start Saving

A certified financial planner isn't free, but many find they are well worth the investment. With a little research, you can find a financial advisor who can help you make the most of your earnings and savings. You'll have a strong foundation as you navigate your future.

Don't stop getting savvy now. For more information on certified financial planners in your area, contact us today.