Navigating your personal finances is something that’s easier said than done, especially when you’re trying to work toward multiple financial goals simultaneously, such as building up an emergency fund while paying down debt. For that reason, it can often times be helpful to get a second opinion and seek some guidance on your next steps from a financial professional.
According to Northwestern Mutual’s 2022 Planning & Progress Study, 58% of the respondents who said they do not work with a financial advisor reported feeling somewhat or very anxious about their finances. The survey polled Americans ages 18 and up between Feb. 8–17, 2022, and also found that 66% of millennials and Gen Zers — as well as 54% of all adults in the U.S. over 18 — felt the same way.
With that in mind, Select takes a closer look at the potential perks of speaking to a financial planner and when it’s time to start having those conversations.
How can a financial planner help you?
Financial planners don’t just help you learn how to handle your budget and save money — they’re meant to provide guidance on any life event that can have an impact on your finances at all. That means they’re able to assist everyone from young families who are just settling down to those who need help with tax and estate planning.
Here’s a look at some of the other areas financial planners can assist you with:
- Income and debt management
- Guidance regarding student loans, mortgages and auto loans
- Retirement planning strategies
- Understanding Social Security benefits and when it’s best to collect them
- Veteran benefits
- Opening an IRA
- Risk exposure and insurance planning
- Long-term care insurance
- Investment recommendations
- Proper asset allocation
- Rebalancing your portfolio
- Saving for your child’s future
- Developing college funding strategies
- Estate planning
- Minimizing your tax bill
When is the right time to speak to a financial planner?
If you’re in need of a new perspective on your finances, it could be a good time to seek help from a financial planner. It’s also possible to benefit from having just a one-off consultation, so an ongoing long-term relationship may not be necessary for everyone, depending on your needs.
While budgeting apps such as Mint and Personal Capital can also help provide a bird’s eye view of your finances, if you need help determining which next steps make the most sense for you, that’s where a financial planner can step in.
If a triggering event such as a marriage, death or divorce occurs, that’s usually a good time to speak to a financial planner about how to best manage these changes to your current finances.
Another good time to set up a call with a financial planner is if you’re nearing retirement, as it could be helpful to check in with a professional and make a plan for how you’re going to make the money you’ve accumulated throughout your working life last the rest of your days. Doing so can make it feel as if a weight has been lifted off your shoulders since you won’t have to figure it all out on your own and can rest assured knowing you’re making the best financially feasible decisions for you and your loved ones.
A financial planner can also help you to better analyze your lifestyle expenses and savings so you can decide on a safe amount of money to withdraw each year. They can also spot any holes in your retirement plan that you might have overlooked, which might help to restore some peace of mind and ease some anxiety.
