When and Why You Should Hire a Financial Advisor

When and Why You Should Hire a Financial Advisor

(MoneyHippo.com) – Perhaps you’ve heard you should let your money work for you. Invest in this, save that amount. And while it’s tempting to hand everything over to someone else, the better option is to find a mentor to teach you the ins and outs of finance, so you stay in control with some expert advice in your corner. 

So when do people hire financial advisors? Often, something significant in their lives is changing, like marriage, having a child, divorce, or inheritance, or they’re trying to reach a specific goal and want help. Hiring an advisor is like bringing in a knowledgeable partner who can guide you to understand investing better and how to reach your goals. They can help you with:

  • Retirement planning
  • Investment strategies for growth and income
  • Planning for your child’s future
  • Prioritizing financial goals, both short and long term
  • Understanding the market and financial instruments

Once you decide, choose a few highly rated advisors to interview. Ask them how long they’ve been in the business and how they charge for their services, whether an hourly fee or a commission. Find out what kinds of clients they mainly serve to determine whether they might be a good fit for your needs. Ask about their contingency plans to continue meeting client needs if they fall sick or die as well. Be sure to ask if they are regulated fiduciaries because they are legally required to put clients’ financial interests before their own. Finally, ask for references and follow up with them.

Above all, stay involved. Hiring someone to deal with your financial assets is not a set-it-and-forget-it venture. You want to make sure they are on track to meet your goals.

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