5 situations when you need a financial advisor

5 situations when you need a financial advisor Economy Insights

Most people know the importance of having a good financial plan, but very few follow through. Financial advisors can help you develop a solid strategy for managing your finances. Here are the top five situations when you need a financial advisor.
2022-01-27, by Ted Jackman, Independent Financial Adviser

#Finance || #Investments || #Pension ||

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Financial advisors are often seen as a luxury item, but they can also be necessary. If you don't have a financial advisor, you might consider hiring one in some circumstances.

1. You do not want to do it

You need a financial advisor when you don't want to spend a lot of time deciding how you will use your money. Financial planning involves calculating risks, probability of success and failure on your investments, the best amount to save, invest and so on. These complex mathematics and statistics problems can be a hassle, especially if you hate maths or are too busy to do so. 

So, why not outsource such to an experienced person? A financial planner can take care of all that work for you and advise what's best for you in terms of saving, investing, insurance, and retirement planning.

Do not rely on your relatives or family for advice. They are not professionals. Chances are they won't even give you the advice you need. Some might even tell you to use your investments to fund your lifestyle instead of growing your wealth. Such advice is wrong and dangerous to follow.

2. You aren't sure where to start

Sometimes, you might be motivated to plan for your finances. However, as you start setting the plan, you realise you don't know where to start. Should you prioritise savings or pension investments? If it's savings, how much should go into that kitty? How much should you use for shopping and upkeep? Such kinds of questions will leave you confused and with a blank paper. 

You should definitely get some professional guidance if you're starting to invest. You probably don't know much about finance when you're getting started. You'll likely be stuck on several decisions. As such, you might end up making mistakes and lose money. So, it's better to avoid making any mistakes at all costs.

A financial advisor can guide you through the process of creating a financial plan. They can teach you how to manage your money, set up goals and objectives, determine risk tolerance, and more.

3. You are not sure about your retirement

Retirement is something many people dream about in their middle ages. But most people don't think about their retirement until they reach old age. Retirement means different things to different people. For some, retirement means travelling worldwide, while others see retirement as simply enjoying life without working. Whatever your definition of retirement may be, there are certain steps you must take before you retire.

One important step in preparing for retirement is determining how much you need to save each month. This number depends on your current salary, expected expenses, and desired standard of living. Once you've determined this figure, you can calculate how long it would take to accumulate enough funds to meet your needs. A financial advisor can help you and guide you through the entire process for the best retirement plan.

4. You have a complex investment plan

Investing is one thing but having a complicated investment plan is another. It takes a lot of research and analysis to make your investment plan successful. And since you're not a financial expert yourself, you might not be able to do everything by yourself. That's why you need someone who knows what they are doing.

Financial advisors can help you create a detailed investment strategy that includes asset allocation, diversification, rebalancing, tax efficiency, etc. All these factors play a huge role in helping you achieve your financial goals.

5. You want to grow your business

Starting a new business is no easy task. There are countless challenges to overcome, from finding the right location, financing, marketing, and hiring employees. While you might be able to handle all those aspects by yourself, you'd still need an experienced partner to help you out.

Your financial advisor can act as your business partner. They can help you find the right funding sources, advise you on legal issues, and provide other services that can help your business grow.


The above are the top five situations when you need a financial advisor. If you fall under any of the categories mentioned, make sure you hire the right talent. Get someone who will assist you meet your goals and not theirs. Ensure that relevant accrediting agencies have also licensed the planner in question.

Ted Jackman

Ted Jackman contributor to abundance.org.uk
Independent Financial Adviser