Personal Finance
These Are the Life Events Where a Person Definitely Needs a Financial Advisor, and Why It’s Okay to Ask for Help
As Featured in
We hate to break this to you, but chances are you can’t do everything by yourself. Even if you could, you shouldn’t. People were not built to be one-man armies. Sometimes we let our pride get in our way, pushing away others because we’re hellbent on the idea of making it on our own. If on the off-chance that you do succeed all on your own, weathering every storm, building every victory…chances are you could have done all of that much more quickly by inquiring with those who’ve gone before you. After all, what is the point of having professionals in every arena, if we don’t pull them for resourceful insights? Mentors, thought leaders, advisors—these people do what they do, so you don’t need to waste time beating your head against a wall. Besides, sometimes life happens, and our carefully mastered plans are blown to pieces. Our spouse’s financial behaviors nuke all plans for a healthy retirement. A divorce rips through your mind and emotions like a storm. Family members or good friends die. Heck, even the good stuff like changes in career or marriage can come with a whole host of stressful considerations. Good stress, but stress nonetheless. You don’t need to put yourself through that, and you don’t need to blow months of your time working around a problem when someone else could get you there in a tenth of the time. To quote a great line from a subpar movie: “You want to get out of that hole? First you’re going to have to put down the shovel.” It’s the Incredibles 2. Look, I’m not proud of the pull either, okay? It just worked so well. So many people go through life without a contingency plan and just go straight at it, thinking that everything is going to pan out just the way they think they will. That oftentimes leads to a lot of disappointment, as life changes can happen to anyone — both good and bad. What is key, however, is to ensure that you have a plan for whatever does arise in your life. To shed light on this further, a Certified Financial Planner shares a bit about his former experience in the military. "When I used to work as a pilot in the United States Air Force, we had two plans in place," says Larry R. Frank, Sr., CFP, founder of Better Financial Education. "The default plan assumed everything would go normally, but the contingency plan was for those moments when the flight didn't go normally at any point along the way. Twice a year, we would simulate and practice emergency procedures that you couldn't practice in the aircraft. When people realize that their life is not going according to plan, disappointment and frustration usually become their driving factors. However, my training in the Air Force helped create a fundamental element in my financial planning process to ensure every what-if scenario is thought of, and flexibility is built into each roadmap we develop. This has significantly reduced the amount of client frustration when things don't go as planned, as there are contingencies in place to help ensure that financial goals are still met," Larry continued. Anyways, let’s talk about how a financial advisor can help you, and when you should reach out for support. “Most people make the assumption that financial advisors are only geared to one’s future, or that they only cater to the wealthy,” says Leonard Kim of AdvisorCheck. “That couldn’t be farther from the truth. Their role is designed to help you navigate both the challenges and the opportunities based around all of the life events that could occur in one’s lifetime, from wedding planning to helping you go to a sporting event that might seem like a pipe dream today, like the Super Bowl or the NBA Finals,” Leonard continued. It can be a lot to stomach so many different types of situations all at once, so we’re going to break this down into something more digestible. We’ll start with the good. First of all, congratulations! Tying the knot is a major landmark moment for so many people, we’re glad you have the opportunity to experience it for yourself. We’re even more glad that you’re taking the responsible approach and showing caution about how quickly the money around these things can spin out of control. Planning a wedding and preparing yourself for marriage can be an overwhelming process. From selecting a venue to managing the budget, there is a lot to consider. A financial advisor can help make these decisions easier by providing personalized advice tailored to each couple’s needs, especially as it relates to responsible budget management. A financial advisor can assess each couple’s budget and recommend ways to maximize their resources. They can assist with deciding how much money should be allocated for wedding expenses and how much should be saved for the future, based on the couple’s broader financial goals. An advisor may also suggest smart investments that will produce long-term results, such as saving for retirement or buying a house together down the line. Furthermore, a financial advisor has expertise in understanding taxes and insurance that newlyweds should consider before donning any white dresses or saying “I do.” Your wedding day and marriage can and should be wonderful. Don’t accidentally self-sabotage by rushing into things. New job, new life. While we recognize not every career change is necessarily good, seeking professional help is always encouraged. Whether you’re trying to figure out the best way to handle a new, higher income, or how to more safely navigate a lower income, a financial advisor can help you avoid pitfalls along the way. A financial advisor is your most powerful resource when determining the best way to use generated income or savings. With your combined efforts, they can ensure all bills are paid, debts are managed, and investments are protected throughout your career change. If and when possible, should you know that a change is coming, that’s even better, as it gives you time to prepare for the shift. Additionally, they will advise on budgeting for new job-related costs such as training or certification fees, interview clothes, and potential relocation expenses. Furthermore, your advisor can create strategies for you to meet short-term and long-term goals while transitioning into a new role or industry, while accounting for your existing responsibilities, such as debt repayment or family expenses. If you have recently inherited money or property, it’s important to make sure that your inheritance is managed as efficiently as possible for the highest total gain. Similarly, if it’s your turn to plan your inheritance, we want you and your family to be at peace knowing that, when the time comes, all your boxes are checked. With a comprehensive estate plan, a financial advisor will work with you to review any assets or liabilities associated with your inherited wealth. They can assist you in understanding the tax implications of inheriting and help you to create a plan that is tailored to meet your needs. Additionally, they can provide guidance on investing any funds so that they are protected over time and maximize long-term growth potential. Your financial advisor is professionally equipped to advise on a wide range of topics up to and including the setting up of trusts, creating wills and other legal documents, developing strategies for charitable giving, retirement planning, and beyond. More on retirement planning later. "Holistic Planning at its finest is really understanding who the client is and deepening the relationship with problem-solving solutions,” says Gabriel Shahin, president of Falcon Wealth Planning. “Building this trust over time helps us take real-life problems and work with clients to solve them. Rarely is the concern from a client about the numbers, but really making the best choice that is right for them. An example of this is through estate planning topics. When choosing which trust to choose and how assets should be titled, a deep dive is taken into the client’s life, for generations to come. How could children and grandchildren benefit from their assets? How can we make impacts with money that will create a legacy for creating generational wealth? These questions really lay out the roadmap on how a family’s legacy will continue to live on for generations to come,” Gabriel continued. The unpleasant outcome of our first example, divorce often requires even more financial support than marriage does. Depending on how combined the couple’s assets are, the division can be bloody and brutal. Who keeps the kids? Who keeps the dog? Who keeps the stock account versus the savings account? Divorce is an emotionally draining process. It can also be financially taxing and challenging, which is why having the help of a financial advisor can provide invaluable assistance as couples move through their separation and beyond. Financial advisors can help both parties understand their current financial situation, guide each of them on how to best manage assets during the divorce proceedings, and develop a plan for what each partner’s finances will look like post-divorce. They can advise on the tax implications of any settlement or other decisions that need to be made through the process, as well as make suggestions about investments or other areas where money could be saved or put away in an emergency fund for future needs. Homes, cars, boats, oh my! Are you looking to drop a lot of cash really soon or in the near future? Cool, cool, cool. That’s fine, we support that. As long as you’ve thought it through, of course. A financial advisor provides recommendations, advice, and guidance, regardless of the house or toys you’re considering. They will help you decide if buying is the right choice for you financially and advise on strategies to secure the best possible deal, without accidentally sabotaging yourself by spending outside the bounds of what you can reasonably afford. Just because you can buy something doesn’t always mean you should. Financial advisors are trained to understand all aspects of personal finance including loan types, interest rates, fees, taxes, insurance costs and more. They will look at all aspects of your finances to ensure that if you need to take out a loan for a major purchase, it’s affordable for your budget now and in the future. Moving is pretty much never fun. Being moved into a new place, now that’s fun. But the process itself, not so much. The worst part is that to a certain extent, it doesn’t even matter how far you’re moving. Whether you’re going cross-country or down the block, you have to pack up everything in the same way, regardless. But that doesn’t mean those situations are quite the same, are they? No, chances are if you’re moving anywhere beyond the city you live in, you’re going to have to pay a service to haul all your belongings to the new digs. There are a lot of ways to ease up the nature of the moving process. You could hire professional movers to do all the heavy-lifting, sell your excess belongings, or find a storage unit that will hold all your unused, sentimental or seasonal items. A financial advisor can tell you all of this and more, as they can work with you to create a checklist on all the considerations you need to make before, during, and after a big move. Financial advisors have the expertise and experience to assist you in making a sound financial decision when it comes to purchasing or selling your home, and all the decisions associated with that change, from budgeting, allocating funds, and determining which costs should take precedence over others. They can also explain any tax implications associated with the sale or purchase of property in order for you to make a confident, informed decision that aligns with your short and long-term goals. Lawn care, selling peanut butter, a comic book store, the next etsy empire, an architectural firm…there are as many ideas for businesses as there are products and services that exist. Whatever you have on your mind or heart to create, you can do it! Though, we’ll tell it to you straight: it’s hard. A significant percentage of businesses don’t make it. But if it’s something you’re passionate about, and just as importantly, if you make all the smart decisions needed to maximize success, you can guarantee your enterprise a fighting chance to make a difference. A financial advisor can help you identify potential sources of funding for your new venture, as well as advise on how to structure that funding for maximum benefit and tax advantages. They can guide you in budget creation so that you don’t overspend or miss any important expenses. They will look at both long-term and short-term goals for the business, helping you to plan and prioritize tasks accordingly. Additionally, they can help analyze investments to ensure their profitability and make sure that all taxes are paid correctly throughout the year. This is, admittedly, a hard and fast summary of the ways a financial advisor could be a business boon, as entrepreneurial work is a vast and complex network of ideas and considerations, but if you want to really drill down into the details, you’ll need to find one of your own. Having a child is an incredibly exciting time for any family, but it should come as no surprise that you’re also shouldered with a lot of financial responsibility. If there’s a baby in your future, you owe it to them, your partner, and yourself to prepare financially for the future. Working with a financial advisor is an invaluable aid in helping you create a long-term strategy that meets your needs as a growing family. Financial advisors can help parents assess their current financial situation, set realistic budgeting goals, and develop strategies to reach those goals (you know, like saving up for school or medical care). They are experts in investments, taxes, insurance coverage, retirement planning and estate planning—all areas that come into play when you’re expecting or raising children. Financial advisors can help ensure that your money is being used wisely and efficiently, so you won't have to worry about running out of funds during the early years of parenting. We don’t want to neglect the importance of the costs of a child as they proceed into adulthood. On the matter of college: a 529 plan is an important tool for parents and grandparents to help their children pay for their college education. This tax-advantaged investment account can be set up with a variety of investments, such as stocks, bonds, mutual funds, ETFs and more. There are many benefits to setting up a 529 plan including the potential for tax-free growth on contributions and earnings as well as the ability to withdraw funds free of federal income taxes when used toward qualified higher education expenses. Beyond that, if you prepare and fund a Roth IRA account while ensuring its growth, you’ll set up your children to possibly have a million dollars (or more) by the time they retire. Whether you’re planning for an early retirement, or setting yourself up to enjoy your twilight years to their fullest, the earlier you start cultivating a plan of attack for retirement, the better. As costs continue to rise, we aren’t guaranteed that today’s recommended retirement savings will be enough to cover all your bases if you don’t retire until say, 30 years from now (based on inflation, you’ll probably want to have about 2.7-2.9 million saved if your plan is to retire somewhere around 2055). A financial advisor is a great resource for helping you set yourself up for the best retirement possible. Not only will they help you make wise investments, but they can also provide guidance and advice on the best way to prepare for the unexpected. A financial advisor provides helpful information about the various types of retirement accounts available, such as 401ks or IRAs. They will consider your current financial situation and goals and create a plan that suits your needs. As life expectancies have increased, so have costs associated with healthcare and other expenses in retirement. A financial advisor helps you determine how much money you should save in order to maintain a comfortable lifestyle well into your golden years. It should be a time of joy and comfort, not stressing over money. Do yourself justice by planning for your latter years in advance. Financial advisors need to be adaptable. As we’ve covered with the examples above, they need to provide professional guidance on any number of complicated, emotionally-charged life situations. Because of this, not only are financial advisors technically proficient in all areas of their financial insight, but capable of accommodating you regardless of where you’re at in your journey towards financial wellness. "Nobody likes change especially when it's disruptive, however this can the best time to make some great and strategic changes to your goals and set a new plan to get you there," says Hatem Dhiab, CFP, managing partner at Gerber Kawasaki Wealth Investment Management. "In fact, oftentimes, we see change as an opportunity for a course correction. You just have to consult advice with a conflict free advisor that has the right expertise and has seen your situation over and over. However complicated and complex your transition is, there's many ways to go about it. Understanding all of your options with a fiduciary advisor is the first step to being able to make the right decision," Hatem continued. They are there with you to share in the joy of adding a child to your life, as well as recover from broken relationships, while prioritizing a steadfast financial health throughout, so no matter what you’re going through, you can feel safe that there will be no judgment, only compassionate professionalism. Waste no more time wondering. Reach out and find a financial advisor of your own, and learn first hand how they can support you in your present, and work together with you into a brighter financial future. Written by Cooper Barham Fact checked by Billy Quirk Reviewed by KJ Kim Disclosure The information provided in this article was written by the research and analysis team at AdvisorCheck.com to help all consumers in their financial journeys, by providing the resources and the insights to help improve one’s financial health, make it through recessionary and inflationary periods of time, and save their earnings to use them towards building a secure financial future. Unauthorized reproduction or use of this material is strictly prohibited without prior approval. Any parties interested in content syndication, references, interviews, or PR, please contact our marketing team at marketing@aimranalytics.com AdvisorCheck.com is an independent data and analytics company founded on the principles of helping to provide transparency, simplicity, and conflict-free information to all consumers. As an independent company providing conflict-free information, Advisorcheck.com does not participate, engage with, or receive funding from any affiliate marketing programs or services. To become a free AdvisorCheck member, visit advisorcheck.com/signupChildren, divorce, retirement oh my! If you’re like most people, you don’t have all the answers to every situation life throws at you, which is why a financial advisor might be your answer to create peace in a financial storm.
Advisement In the Good and the Bad
Weddings & Marriage
Career Changes
Inheritance and Estate Planning
Divorce
Major Purchases
Moving to a New Place
Starting Up a Business
Having a Child
Setting Your Kids Up for Success
Retirement Planning
Financial Advisors: Astonishing Expertise Wrapped In Personality
