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4 Situations Where Getting a Financial Advisor Makes Sense


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June 04, 2021

4 Situations Where Getting a Financial Advisor Makes Sense

Some people feel like they are financial geniuses, but most others do not. Many individuals will freely admit they're not great with money, especially when it comes to complex financial matters. Luckily, though, there are experts who can help you if you need advice or an investment strategy.

You may not be sure, though, when the best time is to get a financial advisor who can help you with your money and planning for your future. Let's talk about some scenarios where you probably need to bring in professional help to assist you in this area.

The 20% Rule

You can always ask an attorney about financial matters since they're often sensible individuals, and some of them know about investing. Financial advisors or strategists, though, make helping people with their money their life's work.

You might decide the time is right to talk to a financial advisor if you've reached a point in your life where you can save 20% of your total net income. Some people never reach that point, or they only do so later in life. That's one of the financial goals toward which you should strive, though, since you can save that money for retirement, purchasing a home, and so forth.

If you get to this point, you can contact a financial advisor and ask them how best to invest that money. What they tell you will probably depend on what your goals are. You probably don't want to throw that money in the bank, though, since other investment strategies will likely benefit you more.

When You Receive an Inheritance

Receiving an inheritance can change your life. It doesn't happen for everyone, but if you have a wealthy parent who dies or some other relative who left you a chunk of money, that's a time when you're probably going to need some sound advice.

This sort of windfall might only happen once in your life, and if it does, you don't want to make a mistake. If you have debts, the financial advisor might well instruct you to put most or all of the money toward that. Paying off student loans, credit card debt, and other financial burdens can positively change your fortunes.

If you're debt-free or close to it, they might talk to you about putting some of that money into stocks, bonds, mutual funds, and other investments. Virtually all financial advisors will tell you to diversify your portfolio, so be ready for that.

You Want to Put Away Money to Send Your Kids to College

You might be at the point in your life where you have a couple of kids, and they are getting close to college age. It may also be that your children are very young, but you're already thinking about their education.

If so, that's commendable. Education can cost quite a lot, especially if you want your youngster to get into one of the best schools. At the moment, the federal government is quarreling about student loan forgiveness, but it's far from certain how that's going to turn out.

You know that if you can pay for your child's education at a reputable school, that's much better than them going into debt. You can definitely talk to your financial advisor about all of that, and they might be able to suggest a way you can juggle your current bills while still putting money away for your child's college tuition.

You Are Getting a Divorce

If you're getting a divorce, it's probably a rough time for you emotionally. However, you need to think about your finances, especially if the divorce is particularly acrimonious.

Your financial advisor can talk to you about how you can protect your assets so that your soon-to-be-ex doesn't get all of it. You'd hope that the two of you can come to an equitable arrangement, whereby both of you have enough to live comfortably. Still, there are circumstances where a former spouse will try to get as much as they can from their ex, leaving them with nothing.

A financial planner is not a lawyer, but meeting with them and discussing your finances in this situation is always a smart idea. You may be able to structure your assets in such a way that you can get through the divorce okay and then start to rebuild your wealth afterward.

There are many more viable reasons to get a financial advisor, but these are some of the most common ones.


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About the author

Guest Author

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

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