Home Business Insights & Advice Tell-tale signs you need a financial advisor

Tell-tale signs you need a financial advisor

by John Saunders
25th Oct 21 1:55 pm

While many of us go through life without a financial advisor, there are times when we need some external help to manage our money. If you’re considering getting a financial advisor, see if you fit one of these tell-tale signs that you’re in need of that expert help.

You’re a high earner

If you’re consistently in the top tax bracket, it’s time to hire a financial advisor. This is because you have the chance to take advantage of high-yield saving strategies and investments with services like Wealthify. You could also be making more of retirement plans aimed at high earners that mean you won’t pay more tax than you need to before and after retiring.

You’re unable to make financial decisions

Many of us suffer from analysis paralysis, especially when it comes to making important financial decisions like investing or balancing your financial portfolios. If this sounds like you, it’s worth hiring outside help to ensure you can make smart money choices and don’t lose money in the long run. A financial advisor can offer objective advice about your finances so you can get out of your own way and make decisions about your money.

You owe back taxes

Filing tax returns is a complicated business and we all dread being told we miscalculated our taxes and owe more than we expected. If you owe back taxes, especially if you can’t figure out why, you should hire a financial advisor, even on a short-term basis, to help you sort out your taxes. They will be able to pinpoint where you’ve gone wrong and help you plan your payments ahead of the deadline for paying your back taxes.

You don’t know how or when you’ll retire

Retirement is a long-term financial goal that requires a lot of planning. Many of us are paying into one or more retirement plans and may be uncertain about how much we have saved, how pay-outs will work, and when we’ll be able to retire. This is where a financial advisor can help out. Your advisor can help you assess your retirement savings, plan out what you need to do to retire when you want, and put together an effective action plan.

You’re stuck in debt

You can read all the debt advice articles you want, but getting out of debt is difficult. Nevermore so than when you’ve been stuck in a cycle of debt for years and haven’t been able to shift your debts. A financial advisor can help you take a realistic look at your finances and your debts and put together an achievable plan for getting out of debt. They’ll also be able to break down what you owe and what interest you’re paying so that you know which debts to prioritise.

You don’t want to manage your money yourself

Personal finance is time-consuming and requires a degree of financial literacy to manage alone. Some people learn how to manage their money early and are very capable of handling their finances independently. That isn’t the case for everyone. If you don’t plan on learning how to manage your finances, you’ll save money in the long run by hiring a financial advisor to do it for you.

 

The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision.

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