Broker Check

Do I Need a Financial Advisor? Ask These 4 Questions

November 20, 2020

When people find out my profession, I often get asked the question, “How do I know if I need a Financial Advisor?” To be fair, no one needs an advisor like we need food or water, but some people certainly benefit much more than others. I’ve come up with these four questions to ask yourself to see if you might benefit from having a Financial Advisor.

  1. Do you have an “every penny” budget?

It’s easy to think a budget is writing down all your monthly bills and then calling it a day. In reality a budget should account for every penny your household makes. How else can you really have full control of your finances? Having an “every penny” budget is the first step to having solid personal finances regardless of your age. If you don’t have and “every penny” budget a Financial Advisor can help you make and keep one.

  1. Do you understand your benefits at work and from the Government?

The benefits you get from work are part of your overall compensation and you owe it to yourself to understand how they work and what you are getting. A common trap is only thinking about your benefits when you need them, but you should know from the word “go” what you’re entitled to in order to get the most from your benefits. This goes double for government programs like Social Security and Medicare. Knowing how these programs work well before you use them sets you up for greater success when you do.

  1. Can you read and understand an investment prospectus?

I’ve found that an investment prospectus is more likely to end up in someone’s garbage can than be reviewed carefully. Yet these are important documents that tell the risks, objectives, costs, and investment strategies for the funds you own, including those in your retirement accounts. If looking through one of these is reading Greek to you, a financial advisor can help explain your investments.

  1. Can you separate your emotions from your money?

You work hard for your money and that can make it hard to think of it for what it is: a resource. And it makes sense to use that resource in an efficient and rational manner, but many of us don’t. When you make a financial decision are you think with your head, or you gut?

If you answered yes to any two of the above, it may make sense for you to look at getting a financial advisor. An advisor is there with education, guidance, and knowledge to help you make the best decisions regarding your money to help get the best possible outcomes for you and your household.

Next week, I’ll go over how to look for a Financial Advisor, but if you can’t wait click on the contact section of this website and set up a call with me today. I’m happy to talk and the first consultation is always at no obligation to you.

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