5 instances where hiring a financial advisor can be useful

Financial advisors are qualified and trained experts who provide sound advice for money management. Individuals and business owners can benefit immensely from their research and recommendations. They help achieve financial goals and even your personal financial targets in the long term. Often, many debate the need for a third-party advisor. However, this could be subjective to the situation. When to hire a financial advisor For family planning It may sound obnoxious the first time you hear about someone hiring a qualified professional to manage their household finances. In today’s economy, however, paying for life insurance, estate planning, saving for college expenses–in short, the cost of starting a family can be pretty overwhelming. No doubt there are tons of investment opportunities and methods which can increase the savings for your family. But, it is a painstaking process to read and understand the fine print of every disclaimer you come across. Here is where a professional financial advisor will provide you with his or her expertise to plan prudent financial investments. For exploring business opportunities If you are an entrepreneur or business owner, you must hire a financial advisor to plan your business model. Managing your personal expenses and capital expenditure for the business are quite different. A professional advisor is familiar with the financial and legal jargons, making the business both profitable and tax compliant. While you worry about expanding the business, a financial advisor will identify the best ways to make it possible. You will be in a better position to assess the type of loan and finance available to fund your expansion with a professional advisor. For income management If you earn an income that is taxable in the higher slabs, it only makes sense to explore investment options to save as much tax as possible. A financial advisor will find tax saving investment opportunities, mutual funds, and individual retirement accounts. Some professionals go beyond their advisory role and offer services to manage your portfolio, file claims, and even collect tax refunds (with written authorization, of course) on your behalf. For self-employed business owners As a self-employed entrepreneur, you will have to manage variable income sources and restructure company finances from time to time to make your business model more profitable. With all hands on deck, it only makes sense to hire a financial advisor to execute decisions on your behalf. For retirement planning Retirement planning should ideally start when you earn your first paycheck. It is a gradual process and requires due diligence to save and build your nest egg in a timely manner. The sooner you start, the better will be your retirement portfolio. The question remains, where and what to invest in? Should you put all your money in bonds, IRAs, invest in the stock market or simply open a high yield savings account. Hiring a professional to asses the best possible avenues for investment and savings will help you efficiently. Planning also helps you meet your current obligations. A financial advisor will also advise the best strategy to use your retirement savings to meet your needs and ensure that there is enough left thereafter.