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Why You Need a Financial Professional: The Basics

Why You Need a Financial Professional: The Basics

July 26, 2018

The term “financial professional” is a broad designation that encompasses a certain class of people who are qualified to oversee your finances. Simple definition, right? But, what’s complex for some is determining why you need a financial professional, and when should you hire that person. Many individuals believe they can manage their finances quite well, and while some of you certainly can—others need that critical oversight.

The financial professional can address a variety of your needs to help you manage your money. From CPAs to investment advisors to wealth planners—while some may focus on one part of your financial picture and others on your financial health as a whole—all bring considerable value to the table.

But, when should you retain a professional to help navigate your finances? For the most part, you may have great control over the state of your own wealth. However, you shouldn’t wait until you “need” a financial professional to hire one.

3 Reasons Why You Need a Financial Professional

Typically, people tend to wait to consult a professional until a key event impacts their lives (such as inheriting money, having to manage investments or navigate new tax law). The fact is, there is no magical number or situation that determines your need for assistance. Instead, the decision should be made using practical judgement.

1. Take the burden of financial planning off your shoulders. You are busy living life and earning money to support that life, you shouldn’t have to worry about how to protect your hard-earned wealth. Hiring a financial or wealth planner to help is a prudent decision and provides you with a person who has the expertise to help keep you on track to achieve your goals.

2. Invest without uncertainty or fear. You aren’t a Wall Street broker and you shouldn’t have to be. Having someone on your team who has the knowledge to invest your capital within the realm of your comfort zone can help you grow your wealth without your having to take a crash course on every available investing vehicle out there.

3. A good tax advisor is worth his or her weight in gold. It’s no secret that the more money you make, the larger your tax liability potentially becomes. And, the key word here is “potentially.” There are many tax-saving techniques the IRS allows, depending on your situation. Instead of your having to learn the nuances of every tax law, rely on an expert for that advice.

Regardless of your financial status, financial professionals can help keep you on the straight-and-narrow path in the world of tax efficient saving and wealth accumulation strategy. And that is the primary reason why you need a financial professional. Because your personal economic health depends on not simply how much money you can earn, but about how much you can keep! Having the right professionals in place before you need them eliminates unnecessary stress, provides an advocate to facilitate your financial goals, and helps you preserve the financial foundation you need to build the wealth you deserve.