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Is one of your New Year’s resolutions to get your finances in order? You’re not alone: 68% of Americans say they’re making a list of ways to improve their finances in the new year, according to a recent study by Fidelity. And it can pay to have a pro help you do it: A professional adviser can take the emotion out of making monumental financial decisions and provide the kind of informed guidance you often can’t get on your own. (You can use this tool to get matched with an adviser who meets your needs).
Still, you still may be unsure if you’re “ready” or if you’ve got enough money to warrant having a conversation with a professional. The good news? You don’t have to be middle-aged or have significant assets to hire and benefit from working with a financial adviser, says Anora Guadiano, a certified financial planner and assistant vice-president for the wealth management and consulting group Wealthspire. Instead of thinking about your wealth, she says, consider your financial health and the goals you want to hit in 2022 and beyond.
“The decision to speak with a financial adviser is like getting up the courage to make an appointment for a physical with your doctor,” says Guadiano. “There’s no age or moment when it’s ‘the right thing to do.’” Here are two big signs that you’re ready to take the plunge in 2022.
Sign No. 1: You’re planning for big life milestones (good and bad), or you’d like to start
If you’re feeling overwhelmed about how you’re going to pay for all the things you want to do (while having enough in savings and paying bills), a financial adviser can help you make a plan that fits your needs. “A good time to speak to a financial adviser is when you’re starting to think about big spending and planning goals, such as saving for retirement or buying a home,” says Guadiano.
Other things an adviser can help with? “Should you buy or lease a car? A financial adviser can help you run the numbers and help you make the right decision. Thinking about starting a family? A financial adviser can help you with estate planning, trusts, college savings accounts as well.
And while financial advisers can help you plan for the good things, they can also also help you in the worst of times, says Guadiano, like when you’re facing debts. “If it will impact your life, talk to your adviser,” says Guadiano.
Sign No. 2: You’re unsure how to invest
Whether you’re unsure of what kind of a retirement account to open or whether it’s a good idea to invest in crypto, a financial adviser can help you weigh the risks before making a recommendation, says Guadiano.
If you’ve been burned in the past, it may be hard to know who to trust. A good place to start is by finding a certified financial planner (CFP) who is a fiduciary. That means they will give you advice that’s catered to your best outcome instead of selling products that pad their bottom line. (You can use this tool to get matched with an adviser who meets your needs).
“There are a lot of options nowadays for people seeking a financial adviser who charge either hourly fee or offer very transparent pricing or work on retainer,” says Guadiano. “You can find better pricing options for people who don’t have a lot of money.”
Other things to consider
Just like your health, it’s important to get information from the right sources and not be fooled by hot tips and get rich quick schemes. “Find good sources and articles, with experts such as CFPs offering education and insights. Even if you’re not ready to go to a financial adviser, at least you are getting some knowledge from reputable publications.”
Whether you choose New Years Day or the day after, there’s no time like the present to start researching your options and, for many of you, ask a professional for help. “The best time to reach out to a financial adviser is when you’re ready to help yourself,” said Guadiano.
