5 Signs You Need a Financial Advisor on Your Team

by Tamila McDonald
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You need a financial adviosr

Today, it’s possible to get financial advice from nearly anywhere. Between books, blogs, news sites, banking and investment websites, and apps, insights abound and are often available for free. This leads many couples to assume that they don’t need to talk with a personal finance expert about their situation. However, that isn’t always the case. There are plenty of situations where having a financial advisor on your team isn’t just a good idea; it’s practically a necessity. Here are five signs that it may be time for you to find a financial advisor.

1. You Need A Financial Advisor If Your Savings Is Cash Only

Having a certain amount of cash savings is a good idea. It allows you to easily cover an unexpected emergency, deal with surprise periods of unemployment, and otherwise navigate financial crises. That’s part of smart financial planning. However, if you have far more in cash savings than you need to handle unforeseen expenses or possible unemployment and you aren’t sure which of the other available options are right for you, you might want to talk with a financial advisor.

A financial advisor can help you examine your situation and pick better approaches for wealth management. This includes securing your future with solid retirement planning, investing for short- and long-term goals, and building your net worth.

2. Your Investments Aren’t Growing in Value

While a bad quarter or year can harm the value of anyone’s investment accounts, if yours is consistently losing money, something is wrong. This is especially true if your investments are diminishing in value when the markets are on upswings, a sign that you might not be invested in the best way.

By working with a financial advisor, you can learn about flaws in your investment strategy. For example, you might not have enough diversification, or your risk level might detrimentally high. In any case, a financial advisor will locate any shortcomings in your portfolio and assist you in making beneficial changes, increasing the odds that your account will grow in value over time.

3. You Don’t Understand Your Insurance Needs

Many people don’t realize that a financial advisor doesn’t just assist with investment decisions. Instead, they provide insights and guidance regarding a broad range of investment products, including insurance.

If you don’t know how much life insurance you need, whether long-term care insurance is right for you, or if an annuity or trust is a good idea, a financial advisor can take the mystery out of these options. They’ll help you identify cost-effective policies based on your unique needs, ensuring you have the right amount of coverage based on your circumstances.

4. Your Going Through a Major Life Change

Certain life events make reevaluating your financial situation a necessity. For example, if you are about to get married, want to start a family, are getting close to retirement, or have recently experienced a health issue that impacts your ability to work, you might need to examine your financial choices and make adjustments.

A financial advisor can provide you with guidance during significant life changes. They can let you know if you need additional kinds of insurance, should adjust your investment portfolio, or must make changes to your budget to stay afloat.

When you work with a financial advisor, they act as a neutral third-party. This is incredibly beneficial during major life events where your emotions are running high, as they can help ensure that your feelings don’t lead you to overlook something important or make a mistake.

5. Your Financial Situation Changed Dramatically

If you suddenly land a significant promotion or inherit a large sum of money, you might need help figuring out what to do. Similarly, if you experience a job loss or had a major expense destroy your savings, getting insight from a professional might be wise.

Any time your financial situation changes dramatically, it can be hard to decide what comes next. With a financial advisor by your side, you can explore your options with someone knowledgeable about how the change could affect you, ensuring you make smart choices today and into the future.

It’s important to note that hiring a financial advisor means spending money for their expertise. However, it can be cash well spent, especially if you find a reputable financial advisor, and they help you secure your future.


Do you need a financial advisor? Why or why not? Share your thoughts in the comments below.


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