4 Signs It’s Time to Hire a Financial Planner

Hiring a financial planner can be a great move to make if you want to get serious about managing your finances and assets.

Financial planners help provide information about basic and complex financial skills along with education in money management that is specific to your situation. If you want to make smart moves with your money so you can build wealth, retire early, or reach another goal, hiring a financial planner might be a great option for you.


Here are 4 signs it’s most likely time to hire a trustworthy financial planner.


1. You Have a Large Amount of Student Loan Debt and Need Help Planning out How You Will Pay Off the Debt and Which Career Path You’ll Pursue

If you took out something like $100,000 in student loans for example and didn’t know where to start in terms of paying them off, it might be a sign that you need to hire a financial planner to help you get back on track with your finances.

A financial planner can help you create a realistic budget and a specific plan to pay off your student loans. This may include learning about options like pursuing federal student loan forgiveness, refinancing private student loans or other debt relief solutions. In addition to helping you manage your debt effectively, a financial planner can also help you create a plan to advance in your career as a professional or provide financial advice and guidance as you transition to another job so you can utilize the degree you worked so hard for.


2. You Have Enough Money to Invest, but Don’t Know What the Best Options Are

Compounding Interest is the most basic of concepts. Those that understand it, earn it. Those that don’t, pay it. Investing is important if you want to build wealth. There are tons of resources and articles online that will help you learn the basics of investing but they may not relate to your specific situation.

Only a financial professional can sit down with you and discuss your goals, your current situation, and develop a custom plan and strategy to invest your money properly. You can’t find that type of assistance from a generic resource online because everyone’s needs and situations are different.

For example, if you received a sizeable amount of inheritance, you might want to talk to a financial planner to explore your options in terms of investing it. When it comes to choosing the right financial planner who has your best interest in mind, it’s best to go with a fee-only financial planner or advisor. Check out my first post, 5 Tips to Find an Advisor that Has Your Back.

The term ‘fee-only’ refers to how the financial professional gets paid. Some financial planners get paid a commission based on the financial products they recommend their clients to use like certain stocks, insurance policies, mutual funds, etc. This structure of payment is flawed because the motive behind the recommendation isn’t always based on the client’s goals and needs since there is an incentive to sell a specific product or service.

Fee-only financial planners and advisors accept a fee paid by the client for their services and do not earn any extra commissions or incentives based on their advice and recommendations.

Hence, they don’t need to recommend specific products in order to earn money so their advice is more authentic and candid which is what you need if you are looking for the best solution.


3. You Are Growing Your Family

Having kids can be one of the most exciting times in your life. Parenthood may also cause your finances to do a complete 180 as well. Now all of the sudden, you need to worry about expenses like daycare, school, and healthcare along with long-term expenses like funding your child’s college education and deciding which types of insurance would be best to protect your children financially if something ever were to happen to you.

It’s a lot to think about, but a financial planner can help. A financial planner can provide guidance you on which types of insurance (life, long-term care, disability) would be best for your needs, assist you with setting up a college savings account for your children and more. Having kids means you’re fully responsible for the well-being of another human being and you want to do things right the first time and make sure you are properly managing your money more than ever.


4. You Don’t Have Time to Manage Your Own Finances Anymore

If you are a busy individual and consider yourself pretty financially savvy, you may be missing one thing when it comes to managing your investment portfolio and other assets: time. Time is an asset we can’t get back so it’s important to use it wisely.

Certified Financial Planners have spent countless hours studying the industry and learning the academic side as well. It’s what they do for a living so they are experts and can save you a ton of time while proving their worth.

If you are a busy professional with a growing portfolio, you may start to feel overwhelmed as things get more complicated. When you find a financial planner you trust, he or she can help relieve you from the stress of wondering if you are making the best financial decisions with your money and free up a ton of your time so you can do others things that you value.

Clear Path Financial Planning provides quality investment planning and portfolio management services for busy professionals.


In Summary

You may have very well reached that point in your life where you feel it’s time to look into hiring a financial planner. A financial planner can help you get on the right track with your finances and prepare for the future whether you are trying to purchase a home, pay off debt, or retire.

I founded Clear Path Financial Planning because I believe that people deserve the opportunity to work with a financial planner that puts the interests of their clients before themselves and the firms they represent. If you’re like any of our clients who are seeking refuge from the turbulence of the financial markets and the traditional practices of Wall Street firms, we invite you to schedule a private consultation with us or write to us.



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