As the name suggests, a financial advisor is someone who advises you on what to do with your finances. It is a professional position and they are utilized through all walks of life, by all sorts of different people. Just about anyone can benefit from using a financial advisor, but the real question is, when is the best time to hire one?
The Real Answer
The real answer to the ‘best time’ question as it pertains to a financial advisor is as soon as possible. Not everyone is in the position to hire a financial advisor, but it is never really too early to get started. Basically, the sooner you’re able to start the process, the better things will be as you get older and continue on through life. If you have an income and you have bills and debts, you will benefit from a financial advisor.
Retirement
For most people, whenever retirement starts to get on the radar is a good time to bring in a financial advisor. When you can see the finish line on the horizon, you will want to start making plans and organizing your money so the transition is a smooth one. It’s tough when you stop getting a pay cheque and aren’t prepared and an advisor will help sort it all out.
Death of a Spouse
When a spouse passes away, the financial needs of the surviving spouse can change and become quite challenging. Many people who have lost a spouse end up looking to a financial advisor for help and to get back on track.
Inheritance
Receiving an inheritance often comes at a time of loss, which can alter the decision-making process, but even if it was from someone you weren’t close to, getting a large sum of money out of the blue can lead to problems. Many people who have received inheritances just end up squandering the money, so a financial advisor is usually the way to go.
Selling a Business
When you decide to sell a business, there are several different professionals that need to be involved in the process. These include lawyers, accountants and if you’re smart, a financial advisor. An advisor can help you to organize any profit you might have from the sale and create a solid plan going forward. Not everyone who sells a business considers using a financial advisor, but since there is money changing hands and often many loose ends to tie up, there are benefits to doing so.
The Real Answer
The real answer to the ‘best time’ question as it pertains to a financial advisor is as soon as possible. Not everyone is in the position to hire a financial advisor, but it is never really too early to get started. Basically, the sooner you’re able to start the process, the better things will be as you get older and continue on through life. If you have an income and you have bills and debts, you will benefit from a financial advisor.
Retirement
For most people, whenever retirement starts to get on the radar is a good time to bring in a financial advisor. When you can see the finish line on the horizon, you will want to start making plans and organizing your money so the transition is a smooth one. It’s tough when you stop getting a pay cheque and aren’t prepared and an advisor will help sort it all out.
Death of a Spouse
When a spouse passes away, the financial needs of the surviving spouse can change and become quite challenging. Many people who have lost a spouse end up looking to a financial advisor for help and to get back on track.
Inheritance
Receiving an inheritance often comes at a time of loss, which can alter the decision-making process, but even if it was from someone you weren’t close to, getting a large sum of money out of the blue can lead to problems. Many people who have received inheritances just end up squandering the money, so a financial advisor is usually the way to go.
Selling a Business
When you decide to sell a business, there are several different professionals that need to be involved in the process. These include lawyers, accountants and if you’re smart, a financial advisor. An advisor can help you to organize any profit you might have from the sale and create a solid plan going forward. Not everyone who sells a business considers using a financial advisor, but since there is money changing hands and often many loose ends to tie up, there are benefits to doing so.
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