How to Know When You Need a Financial Planner

A financial planner is an advisor who assesses your finances, understands your financial goals, and helps you create a plan to achieve them. In addition to offering guidance, financial planners can help you avoid bad decisions. While anyone can benefit from these professionals, some individuals may require their services more than others. Here are some of the top reasons to use a financial planner.

You’re Unsure About Your Retirement Plans

While retirement might seem like a long way away, it’s something that you need to start thinking about early on. The money you earn now includes the money you’ll live off of during retirement — the earlier you start saving, the more prepared you’ll be.

Of course, retirement planning is easier said than done. In the United States, about 15% of people don’t have any retirement savings whatsoever. If you’re not sure where to start, a financial planner can help. After evaluating your finances, they can direct you toward a savings plan that works best for your situation.

You Have Unpaid Taxes (And Don’t Know Why)

Filing taxes can be complicated, especially if you don’t have much financial expertise. Unfortunately, mistakes happen — if you’re not extremely careful, you might accidentally forget to pay a portion of your taxes. This will generally result in a notice from a state agency or the International Revenue Service (IRS). While unpaid taxes no longer directly affect credit scores, they can hurt you in the following ways:

  • Increased costs: Unpaid taxes often come with late penalty fees, as well as interest.
  • Poor reputation: Having unpaid taxes on your record can influence your chances of qualifying for a loan.
  • More problems with lateness: Falling behind on your taxes can make it more difficult to keep up with other payments, ultimately affecting your credit score.

One of the best ways to get your finances back on track is by consulting a financial planner. With their assistance, you can quickly identify the issue and ensure that the mistake doesn’t happen again.

You Share Finances With Someone Else

After getting married, many couples decide to open joint accounts and share the majority of their finances. As time progresses, some couples may find themselves struggling to agree on money matters. Some of the biggest sources of conflict include:

  • Disagreements over spending
  • Large differences in the income of each partner
  • One partner being in debt
  • Anxieties about control
  • Disagreements over children

If money is creating tension in your home, it might help to bring in an objective third-party to help handle the finances. A financial advisor can work with both people to find a compromise that suits everyone’s demands.

You Just Don’t Understand Finances

The average person doesn’t have a degree in finance or experience working on Wall Street. While you might understand enough to pay off your bills, a lack of financial knowledge will likely limit your money-making capabilities. However, this doesn’t mean you need to rush back to school and study finance — instead, you can hire someone who is experienced in the field. Working with a financial planner helps you gain insight on the following topics:

  • Investing
  • Taxes
  • Insurance
  • Estate planning
  • Retirement planning

Whether you’re confused about how to invest your money or you think you’re paying too much in taxes, a financial planner can offer assistance. Ultimately, their goal is to help ensure you meet your long-term financial goals and achieve stability in life.

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