A financial advisor helps you decide where and how to invest your money. Wondering if you need a financial advisor? Here are five signs that you do.
1. You Want Help Planning for Retirement
Most workers make enough money to get by, and some make ample sums to cover the basics and a lot of fun. However, what happens when you're not working? What about retirement? A financial adviser can help you set retirement goals.
You can talk about your current and upcoming needs as well as your plans for retirement. Then, the advisor can let you know what type of investments to make and how much you need to save.
2. You Want to Save for Kids' Uni Costs
If you don't want to rely on loans or subsidies, you may want to put some money aside for your kids' uni costs. A financial advisor can help you make projections on the upcoming costs of uni based on inflation and whether or not your child wants to study in Australia or abroad. Then, the advisor can help you determine what investment vehicles to use and how much money to set aside. They can also help you optimise your savings so that it reduces your tax liability.
3. You Want to Open a Business
More and more Australians are launching into the world of freelancing or opening their own businesses, and if you want to be among their ranks, you may want some financial direction. An advisor can help point you in the right direction. They can help you see how much you need to invest in your startup and how that will affect your personal finances.
4. You Need Advice on Life Insurance Policies
Financial planning involves setting aside money for all kinds of fun things such as starting your own business or travelling through retirement. However, sometimes, you have to plan for unpleasant things such as death, and to ensure your family is taken care of, you need life insurance.
A financial advisor can help you determine how much coverage you need, and in many cases, they can help you find the best product for your needs.
5. You've Recently Received a Windfall
In other cases, you may need a financial advisor to help you manage large sums of money. Have you won the lottery? Inherited a large sum of money? Then, you also may want to contact a financial advisor.