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- Some financial decisions call for reinforcement; others, you can probably handle on your own — at least for now.
- You should consider hiring a financial advisor if you need specific advice or you’re too overwhelmed or confused by your money to plan for retirement or invest in the stock market.
- You probably don’t need a financial advisor if you want to know where to save money or invest a few thousand dollars.
- If you decide to seek professional advice, make sure you hire a fee-only financial planner or investment advisor — they act as fiduciaries, which requires them to put their client’s interests first.
- Robo-advisors like Wealthfront, Betterment, and Ellevest offer a cheaper alternative for investing advice and management.
- SmartAsset’s free tool can help you find a licensed professional near you »
Money can be complex and intimidating, no matter how much or how little you have.
If you’ve considered seeking professional financial help but don’t know where to start, first identify exactly what it is you want to accomplish. Do you want to start investing or invest more money? Do you want to know how much you need to save to retire at 65? Do you need advice for paying off debt? Are you wondering how much life insurance you need?
The truth is that some financial decisions call for reinforcement; others, you can probably handle on your own — at least for now.
Do I need a financial advisor?
Financial advisor is a catch-all term that usually includes financial planners and investment advisors. It’s imperative to look for financial advisors who follow the fiduciary rule, meaning they operate in their clients’ best interest, and are fee-only. This means client fees are their only compensation and they don’t earn commission when you invest in certain funds or buy financial products.
A good certified financial planner can help organize your overall financial picture, including setting up a retirement saving and investing strategy; planning for big expenses, like buying a house or having kids; everyday budgeting and spending; plus tax and estate planning.
Considering a financial advisor? SmartAsset’s free tool can help you find a licensed professional near you »
You may also consider hiring a financial planner if you’re too overwhelmed or confused by your money to make big financial decisions, including how to balance multiple financial goals, manage a business, get out of crushing debt, or establish a retirement savings plan. If the…
This article was sourced from Business Insider.