Financial planners can assist you in various stages of your life by helping you make financial decisions that align with your goals.
What exactly do financial planners do?
Financial planners work with clients to help them make good financial decisions. This includes making decisions now, about how you spend/use/save your money, and in the future, such as at financial independence.
Making decisions now
Are you currently working to support yourself and your family? If so, you are already making decisions now about your money.
When you get paid, you use that money for lots of things: paying your rent or mortgage, buying groceries and gas, doing some “fun” things like eating at a restaurant or going on a vacation or getting ice cream on a hot day.
You also need to pay for health insurance and taxes, often taken out of your paycheck before the rest is deposited into your bank account.
Now, what’s left after spending your money on all these things? Do you have cash in a rainy day or emergency fund? Are you saving for a car or another purchase you plan to make this year? A financial advisor can help you get a better handle on these current money issues.
Making decisions for the future
In addition to money you may spend right now, you may also be thinking of setting some money aside for your future.
Future goals can include financial independence (some call this retirement), buying a home, helping your children pay for college, and more.
The question is, how much should you allocate to each of these future goals, and how do you balance between your current needs and your future goals? A financial advisor can help you navigate between all of these potentially competing goals, and help you make decisions for your future.
Investing, Insurance and more
A financial advisor can also provide advice on investing, and may potentially be able to manage your investments as well. Some financial advisors can review your life insurance and provide recommendations on your coverage levels.
There are many other things a financial advisor may be able to help with, in connection with other professionals. Some of these areas can include estate planning and beneficiary designations; tax planning; navigating the financial effects of major life changes like marriage, birth of a child, divorce, and death.