If you’re a busy individual and have no time for the day-to-day management of your money, you may need to consult a financial consultant.
Beyond being busy, however, there are major turning points in your life where working with a financial consultant is absolutely necessary.
For instance, if you’re approaching retirement, you’ll have to figure out how much money you need to live during your non-working years.
So what is a financial consultant? And what do financial consultants do? In this article, we’ll run you through situations where financial consulting makes sense.
We’ll show you where you can get a financial consultant that is ethical and who will act in your best interest, etc.
Of note, hiring a financial consultant is not cheap. A fee-only financial advisor can charge you anywhere from $75 to $300 per hour. If your situation is simple, you may not need to hire one.
However, hiring a financial consultant in the situations discussed below is worth the cost.
What is a financial consultant?
A financial consultant is another name for financial advisor. They can advise you on a variety of money subjects.
They can help you make informed decisions about managing your investments and help you navigate complex money situations.
Moreover, a financial consultant can help you come up with financial goals such as saving for retirement, property investing and help you achieve those goals.
To get you started, here’s how to choose a financial advisor.
5 Reasons You Need To Hire A Financial Consultant:
1. You have a lot of credit card debt.
Having a lot of credit card debt not only can cause you severe emotional distress, it can also negatively impact your ability to get a loan (personal loan or home loan).
For instance, if you see 50 percent of your income is going towards paying your credit card debt, then you need professional help to manage debt. Your best option is to find a financial consultant.
2. You are on the verge of bankruptcy.
If you have way too much debt and can’t seem to pay it off within a reasonable time, another option for you is to file for bankruptcy.
Although bankruptcy will free you from most of your debts, avoid that option if you can.
One reason is because it can have a long, negative impact on your credit file. Once you go bankrupt, the bankruptcy will be on your credit report for a long time.
Working with a financial consultant can help you come up with different strategies. They may advise you to consider debt consolidation, which can significantly lower interest rates.
Speak with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
3. You’re ready to invest in the stock market.
If you’re thinking about investing in the stock market, then the need for a financial consultant is greater. Investing in the stock market has the potential of making you wealthy.
But with great returns come great risks. The stock market is volatile. The price of stock can be $55 today, and drops to $5 the next day.
So, investing in the stock market can be very intimidating. And if you’re a beginner investor and unsure about the process, it is wise to chat with a financial advisor to see if they can benefit you.
A financial consultant can help build an investment portfolio and help manage your investments.
4. You’re starting a family.
If you’re just got married seeking a financial consultant is very important. A financial advisor can help you figure out whether you should combine your finances, file taxes jointly or separately.
You also need to think about life insurance as well, in case of death of one spouse. And if you’re thinking of having kids, you need to think about saving for college to ensure the kids’ future.
Turning the job over to a financial consultant can save you a lot of money in the long wrong and is worth the cost.
Related: Do I Need A Financial Advisor?
5. You’re just irresponsible with money.
If you make emotionally based financial decisions all of the time, you’re buying things without planning for them, you may be irresponsible financially and therefore need professional advice.
If you’re spending money on expensive items when you could be planning and saving for retirement, then you may need a financial consultant.
You may find yourself having trouble saving money. Then it may make sense to speak with a financial advisor.
Speak with the Right Financial Advisor For You
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.