Planning for our financial futures can be stressful. If we had a crystal ball, we would be able to know exactly much money we will need in the future, and the best way to invest it to reach our goals.
Unfortunately, we don’t have crystal balls, and eventually we have to decide whether or not we will be able to manage our own finances, or if we need to consider hiring a financial advisor.
First, we need to understand what type of advice financial advisors offer. Things your financial advisor may be able to help you with include:
- How to invest your retirement savings
- How to set up a college fund for your children.
- What type of mortgage you should take
- How much life insurance do you need
- How big should your emergency fund be
- Estate planning and tax planning
In most cases your need for a financial advisor increases with age.
If you are married with children then you should consider getting some professional financial advice. At this point in your life you have a lot more responsibilities and there is a lot riding on each decision you make.
At some point you will need life insurance or to buy a home. A financial advisor can help you figure out how much insurance you need, and also how much house you can afford and what kind of mortgage is best for your situation. These and other financial topics are probably things you have rarely considered, getting some professional advice can be a huge help in these situations.
If you are young and single, your need for professional advice may be lower, but it never hurts to start saving for retirement and making other plans for your future.
Regardless of your current situation, it never hurts to at least contact a financial advisor. In most cases, they will offer you a free consultation and explain what services they have to offer. Be sure to go in with a list of questions. You should leave the meeting with a better understanding of where you stand financially, and what you need to do to reach your financial goals.
Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. In addition to writing for Fresh Brewed Media, Michael also wrote for AOL's BloggingStocks for three years, focusing most of his attention on the energy and technology sectors.