If you’re young, you might have a really hard time seeing the benefits of a financial advisor. Many young people are renting their homes, maybe own a cheap car that was bought used or handed down to them, and haven’t really needed to think about retirement. Once you get older, however, your money starts getting a lot more complicated, with multiple assets and loans, and the thought of retirement looming over your head.
While it can be a bit silly to think about hiring a financial advisor when you are just starting out in life, at some point, there’s a fine line where having a financial advisor can be a really smart idea. To help you decide where that line is for you, here’s a list of the main times in life that you may need a financial advisor for.
If you’re buying a house
When you decide to buy a house, you’ll most likely be meeting with a mortgage advisor, loan officer, or bank representative. You may receive different advice from each one, because of their background and what help they’re there for to provide. It may seem redundant to have a financial advisor when you’ve already got people there to advise you on your home loans, but this is especially important to not let your other finances slide when you’re distracted by your home loan. For help discerning the difference between mortgage advisors and a financial advisor, take a look at this article.
If you’re starting a business
Getting a business loan, online or in person, is a complicated and potentially nerve wracking event. Hiring a financial advisor will help you prior to actually applying for the loan, and getting your finances in order to get the best deal possible. Even if you’re already well into your business loan and you’re just looking to add something like a commercial vehicle loan to your debt, a financial advisor can help you determine when, how, and how much your business can handle at the time.
When you’re juggling multiple loans
Knowing how to consolidate loans and refinance others is a job left to the experts. If you have some background knowledge in this, then you may well be fine doing it yourself, but a financial advisor will have the access and the expertise to be able to help you find the best interest rates and loan terms. They might also have some inside knowledge on things like discounts on car cover in NZ, saving you even more money.
If you’re trying to save for your future
When you don’t quite know how to save or what to save or where to save it, a financial advisor is a good idea. The future is a scary thing, especially when you look at your finances and don’t have a clue as to how start. Financial advisors will take a look at where you are at right now, and help you develop a long-term plan for your future. Whether you’re looking to purchase a car, home, business, or other large potential debt item, and you don’t know how to save for it, get yourself an advisor.
Saving for the future often means attempting to invest any savings that you have to get the biggest return. One of the hardest parts of investing is knowing what to invest in, and how risky you want your investments to be. The riskier the investment, the more time and knowledge you’ll personally need if you’re investing on your own, but it also means a higher return. To get the best return on your riskier investments without needing a degree in it, hire someone who has the degree for you.
Self employment is another reason to get a financial advisor when thinking about your future. There will be a lot more options for you when it comes to saving and retirement, versus people employed by a company who are provided with set retirement schemes. Financial advisors will sort through all the options and find the one that best fits you.
When you’re trying to retire
The time has come and all the hard work you have put in over the better part of your life has paid off. You have a retirement fund ready to spend, and many golden years to spend it. The problem is, you don’t know what your budget is or how to make it last.
Many financial advisors specialise in retirement planning and can help answer these questions for you. Once you withdraw your Kiwisaver and any other savings you’ve kept, good financial planning will help you decide how much is needed for each part of your life. For example, they’ll help you with setting aside money for your property tax services or helping you pay off that online car loan. They’ll also make sure that your savings you worked so hard to earn will actually last your entire retirement.
When you just don’t know what you’re doing
If you’re the kind of person who looks at debts and wants to simply ignore them, or the kind of person who is terrified of investing their money and hides savings under the mattress, you are the prime candidate for financial advising. Even a one time consultation can set you on the right path for saving for the future, and help turn your current debt into easier to manage debt and better interest rates, saving you money in the long run. To help convince you, take a look at this interest rate calculator to find out how much money you can save with lower interest rates.
Financial planning is an additional cost for you, so think carefully, using this article, to determine if financial advice is right for you. Remember that they will always be available, so if your budget is too tight at the moment or you feel like you’ve got your investments and loans under control, think about just a one-time consultation to ensure everything is in order. Regardless of your situation, you’ll benefit from the advice, so just make sure it fits in with your budget.