By Joel Zimmerman

What are the Top 6 Signs You Need a Financial Advisor?

They say that knowledge is power especially so when it comes to finances. Since the internet is awash with various dedicated financial publications, why then would you need a financial advisor? Well, they are more conversant with crunching numbers, as well as understanding the market and the jargon involved in financial planning.

Here are 6 signs that you need a financial advisor:

  1. Tax Refunds are Commonplace – Most people hate filing tax returns. This exercise is time-consuming and unrewarding, except when you get a refund for over-paying.

    However, your money does not gain interest while it’s with the IRS, and could have been used in other profitable ventures instead of lying around for an entire year. If you get a refund on your taxes every year, a financial advisor can help you organize your taxes more efficiently so you make the most of every dollar.

  2. You’re Unaware of Investment Costs – It’s easy to believe you don’t pay anything for 401(k) employee benefits, but there are charges involved nevertheless.

    These could include management fees, administrative expenses and so on, for the administration of the 401(k) plan and investments made with the funds. For the uninitiated, this is a complex subject, but with the help of a financial advisor, you can get the low down on what’s required and how much you’re really saving.

  3. You Don’t Have Insurance – Insurance coverage is very critical to how you run your life, and is also an investment you can thrive on at a personal level and as a business.

    For instance, you can borrow against a whole life insurance policy’s cash value when your business is not performing at its peak, you face a personal emergency or want to invest funds for better returns. Your family is also protected, especially if your life insurance policy is incorporated with your retirement plan.

  4. You Haven’t Planned for Market Downturns –Financial markets have a volatile nature, as seen in the recent past, and you need a strategy for dealing with down times.

    Businesses and individuals can lose considerable amounts of money when the market crashes, especially if they have all their eggs in one basket. Diversification is a key element in understanding and making the most of the investment market, which is the playing field of a financial advisor!

  5. Your Retirement Savings Seem Low –If you have not really been saving, an upcoming retirement is a sure way of reminding you that this is a priority.

    When retirement is close, you go on high alert, but may not know where to start. You need to be sure that your nest egg is enough to take care of expenses after you retire, plan for the possibility of long-term care and even review your insurance plan. It’s wise to consult a financial advisor and ensure you’ve covered all the bases.

  6. You Have No Legacy Plan – Once you are gone, issues will arise if you haven’t put your financial plans in order, and your family may even face legal battles or probate.

    In case of a large estate without a clear will, legal battles among dependents are common. Courts will try to divide up the estate equally, and even if you’ve made a will, there might be issues regarding the fine print. The services of a financial planner can help you ensure your legacy is passed on the way you want it.

An experienced financial advisor like LifeCentra can offer great advice and insights on the financial markets. In addition to examining your financial position, we offer advice tailored for your unique goals and abilities. Get in touch with us to discuss your needs today!

Leave a Reply

Your email address will not be published. Required fields are marked *