Personal finance has emerged as a hot topic of discussion amongst people, given the increased permeability of information technology in society. Understanding personal finance is critical for effective money management. While some may correctly understand and implement the concept of personal finance, a few may have to consult a financial advisor to get things going well.
This write-up will introduce you to some of your life milestones when it can be ideal for turning to a personal finance advisor if you find yourself in a whirlpool of confusion.
- You’re on the Verge of a Financially Burdening Life Event: When you’re on the threshold of major life events that demand significant financial contribution, like starting a business or having a baby, it can be a good time to look for personal financial advisors. They’ll be able to provide guidance by understanding your financial standing. The level of assistance will be hyper-personalised to ensure you don’t make any decisions with hefty consequences.
- You’ve Received Your First Pay-cheque: Hiring a personal financial advisor when you’ve just started to earn may not sound conventional, but it can be a crucial step toward long-term wealth management. With the expertise of a certified financial advisor, you’ll attain a greater sense of understanding of investments, tax planning, and other financial obligations and opportunities.
- You’ve Received Significant Money: Financial planning becomes integral, especially when we are dealing with the abundance of wealth and assets. They can be in the form of inheritance, major promotion, or anything else. Personal financial advisors will help you come up with strategies that’ll help you retain most of what you’ve acquired.
- You Want to Plan Your Investments: If you’ve been into trading or investing for a significant amount of time but need more guidance on coming up with the best strategies to maximise your gains, hiring a personal financial advisor may be your way to go. Since these professionals dedicate their careers to building expertise in such niches, they can provide valuable guidance to help steer your investment decisions in the right direction.
- You’re Planning to Retire: When you’re serious about retirement, there’s no better time to consult a financial advisor. Retirement can be a period of ease only if finances are planned correctly. A financial advisor will be better acquainted with all the nitty-gritty details that are specific to your retirement. They’ll help you find potential income streams even when you’re not directly working in the workforce.
- You’re Looking to Optimise your Taxes: If you pay a significant amount of tax, it’s time that you consult a personal financial advisor. They can help you identify deductions and other tax advantages while ensuring that you’re in compliance with all the laws.
To sum up, it’s ideal to consult a financial planner before any major life event involving significant financial investment. Nowadays, financial advisory companies, like 1 Finance, have also emerged to offer hyper-personalised financial advice. It’s important to note that apart from the situations mentioned above, there may be times when you’ll have to consult a financial advisor.