Benefits of Hiring a Financial Planner
When to seek help and what a certified financial planner can do for you
Taking control of your finances and setting the goal to become more financially stable is an honorable endeavor that can have a significant impact on your quality of life.
According to a study by the American Psychological Association, Americans admitted that 75 percent of their stress was caused by money, so if you’re concerned about your finances, you’re certainly not the only one. Hiring a certified financial planner can be an important step to becoming financially stress-free. Here are some of the benefits that hiring a financial planner can have for you.
Adriene Hill of Marketplace.com provides some insightful information that answers many of the questions behind hiring a financial planner. Whether you feel that you can manage your finances independently or you’re already desperately looking for help, Hill’s information could be extremely beneficial to your financial journey.
- If you have a lot of financial questions that you can’t find answers to and you’re seeking some educated guidance to help build a plan toward a better financial life, you might want to consider hiring a financial planner
- Situations that might require the help of a financial planner include: you want to give money to your children; you’re seeking credible advice about insurance, tax planning or investing; you need to create a will and testament
- Finding the right financial planner involves research; meet with more than one and go with the one you feel has the most credibility and also puts you at ease when you’re in their presence. You need someone who truly listens to your needs and is willing to help you get where you need to go
Much like other problems in life, seeking professional help for your financial worries could be the easiest solution. If you have a cavity, you know to go to the dentist; if you are experiencing pain, you know to call your doctor.
"Many people don't realize that hiring a financial planner can be a good investment," states Gerri Detweiler, author of Slash Your Debt. "If you find yourself letting important financial decisions go because you just don't seem to get around to them, you might want to talk to a financial planner to get those jobs done."
While there are no guarantees that a certified financial planner can double your money or make your debt disappear, they do have the ability to do the following:
- Assess your current financial status by looking at past tax returns, any and all sources of income, liquid and illiquid assets, insurance policies, wills and retirement and estate planning documents
- Help identify your individual financial needs and goals and develop a financial plan
- Offer advice when looking for other professionals such as lawyers, accountants or investment brokers who can help put your financial plan into action
- Elaborate on the benefits and disadvantages of financial instruments including stocks, bonds, IRAs and mutual funds
- Review your plan’s progress regularly to ensure that you’re on track financially
Proper education and sound advice are two factors that make the right financial advisor worth your investment. Other financial professionals such as your personal banker and your accountant may not have the necessary training and tools required to offer the kind of financial planning assistance that you need.
Be sure to do adequate research into any certified financial professional you're considering hiring; look at their education and history and also seek out reviews from others that have utilized their advice to ensure that you will receive the guidance you're looking for.