Many people assume they need to have a large investment portfolio or be close to retirement before working with a financial adviser. But the truth is, some of the best times to seek professional advice are during major life changes or when your financial situation becomes more complex.
Whether you’re earning more, approaching retirement, receiving an inheritance, or navigating new milestones, working with an adviser can help you make more informed decisions and feel more confident about your future.
This blog covers just a few of the most common situations where it may be the right time to consider working with a financial adviser.
Key takeaways:
As you progress through your career with promotions, company changes or pivots, it’s more than likely that your income will increase. As your income goes up year by year, so do your tax obligations.
The good news is that there are plenty of ways that you can lessen your tax burden. Accountants could certainly help in this area, but financial advisers could take a wider-lens approach to your whole financial plan and suggest tax-management strategies that support both your short- and long-term goals, keeping more money in your pocket.
Depending on your situation and long-term goals, life events will affect your plans differently. But in general, the following events will likely impact your financial plan more than others:
While each of these events can hold different implications, they all may affect your financial situation in one way or another, and likely will force you to reevaluate your priorities.
In any of these cases, a financial adviser can help you re-align your short- and long-term goals to help you navigate the future.
On average, American households inherit $46,200, according to Federal Reserve data. But this figure is inflated by top-tier wealth and masks the truth that many households inherit no money at all.
That means that for most people who receive an inheritance, their dream windfall is likely much more modest. On top of that, factors like taxes, legal fees, or other mistakes could cause you to lose a chunk of your inheritance.
A financial adviser will be able to inform you of the different options you have when receiving an inheritance and can help you make the most confident decision for your overall financial plan.
If you’d like to learn more about the strategies you can take when receiving an inheritance, click here to watch our recent on-demand webinar.
Being self-employed or owning your own small business brings many advantages. You may have the opportunity to set your own hours, be your own boss, and all of the freedom that comes with that. But that freedom could bring unique financial challenges.
For example, being self-employed or a small business owner could mean irregular or fluctuating cashflow. Unpredictable income can make it tricky to manage both personal and business finances while also planning for the future.
By contrast, W-2 employees have a predictable source of income, knowing exactly how much they’ll be paid each month, and how much will be taken out for taxes, insurance and retirement contributions each paycheck.
Owning your own business also means you don’t have any corporate-sponsored retirement plan like a 401(k) or 403(b), and are responsible for managing your own retirement savings account.
Teaming up with a trusted financial adviser can help take some of the pressure off your plate when you have plenty of other things to juggle. They can oversee your retirement savings accounts, offer tax-efficiency strategies, and manage your overall financial plan.
It’s never too early to start retirement planning. But if there is any time to take it more seriously, it is the last 5-10 years before you plan to start withdrawing from your retirement accounts.
In the homestretch to retirement, it’s very common for people to question, am I truly ready? Unfortunately, the answer is usually much more nuanced than a simple yes or no. A financial adviser can take a big-picture look at your situation to help you determine your most optimal timeline for retirement.
If you’re on the right track, they can help make sure you stay on the course until you’re ready to withdraw. And if your savings isn’t quite at the level you’d like it to be, they can suggest ways to help close the gap – including catch-up contributions.
The timing of your retirement withdrawals is just one of the many pieces that you must consider in your final years of retirement. You should also consider the timing of your Social Security benefits and medical insurance coverage.
A financial adviser will be able to help you coordinate all your income sources to maximize your retirement, while keeping your tax obligation down.
Many people wait until they feel they have “enough” money before reaching out to a financial adviser. But often, the right time to start the conversation isn’t based on your account balances – it’s when your financial decisions become more complex.
If you're at the point where you're wondering whether it's time to talk to a financial adviser, that's often a sign that it's worth exploring your options. Finding an adviser who you trust and feel comfortable with is one of the most important financial decisions you'll make.
To help make the process easier, we’ve created a ‘Choosing a Financial Adviser Checklist’ with key questions to ask while you are comparing advisers, services, fee structures and areas of expertise. Click here to download your copy.
And if you’d like to consider us in the running to be your financial adviser, you can click here to schedule a consultation with one of our advisers.