What Decisions Benefit from a Financial Advisor?

There are many instances in which hiring an expert to work with your finances could benefit you. A financial advisor can help you plan how to spend your money in the wisest fashion. Especially if you find yourself becoming confused with math and investing in the future, Select Wealth Managers can give you a better idea on making the best financial decisions.

Having a financial advisor on-hand at all times is of course desirable by many people who feel overwhelmed by their finances. But this cannot always be the case, however there are some instances where it’s best to consult with an advisor who can offer professional intel.

Considering Retirement

Retirement is something that many look forward to for a good chunk of their lives. It’s a big investment—to one day be free from the workforce and indefinitely kick your feet back and relax. This also makes it one of the most complex decisions you’ll end up making with your finances. A financial advisor can help you retire as soon as possible, whilst being as tax-savvy as possible.

Statistically, one-third of people who retire use a financial advisor at some point in their journey. This is because financial advisors can offer an unbiased and well-thought-out perspective on making a retirement plan. Retirement advisors will consider your loans, assets, existing investments, savings, etc., to help you reach your goals of retirement.

When hiring a financial advisor for retirement, it’s important to know what you want, specifically. Maybe you’re looking to make your money stretch for the entirety of your retirement, or perhaps you want to help the next generation. Regardless of your personal goals, there is a financial advisor out there who’s a perfect match for you.

Buying a Home

Buying a home is an exciting step to take, and an anxiety-inducing one. Maybe you’ve bought a home before, but with the constant changes in today’s economy, you’re not certain on how much to put aside so your mortgage doesn’t end up controlling your life.

A key benefit to having a financial advisor is that they can aid you in prioritizing the present moment without jeopardizing your future. When you buy a home, in most circumstances, you’ll have less money to be saved, especially for potential emergencies.

It’s normal, and perfectly okay, to feel giddy about buying a new home. But it’s important to not get ahead of yourself, because as we all know, debt is one of the most stressful circumstances to wind up in. For example, it’s recommended that mortgage debt should be less than two percent of your annual income.

This number isn’t set in stone and can vary between personal situations. Many advisors will recommend that you stay on the frugal side when it comes to your mortgage debt. This is because unforeseen events could happen in the future, and the last thing you’d want is to be tied down to a home that you don’t want, or can’t live in, anymore.

For example, an advisor will consider potential job changes, moves out of state, and divorces when assisting you in your venture of buying a home. Similarly, probate attorneys can provide guidance on how these life changes might impact your home ownership, helping you make informed decisions that protect your investment.

Not to mention, the value of a house does not always increase with time. A financial advisor will consider all factors to try to help both the present and future versions of you to live financially independent.

Investing in Stocks

Stocks are not necessarily a specialty in financial advice, in the same way that retirement and homes are. Financial advisors do tend to be well-versed in the stock market, though, and can sometimes even purchase stocks on behalf of their clients.

If you are looking to become more involved with the stock market and see the potential reward, an advisor will aid you in understanding the risks you’re taking and how much you can safely afford to risk. This is especially a good decision if you already have been considering a financial advisor to help you with other matters.

For example, it doesn’t always make sense to hire both a financial advisor and a stockbroker, especially if you’re on a budget. Stockbrokers focus solely on stocks, while financial advisors have a more general job. If you’re already considering a consultation with a financial advisor, chances are that they’ll be able to help you make wise decisions with stocks as well.

Final Thoughts

Financial advisors are important. They can help you assess the risks and rewards of huge financial decisions, even factors that you may not have previously considered. When your mind is running a mile a minute, a financial advisor has more of a bird’s eye view of your finances. They offer an unbiased and sharp perspective on the wisest decisions you can make when it comes to your finances.