The pandemic has changed the overall standpoints of Americans. The same applies to the financial environment of both the rich and the middle-class people of the US.
The pandemic has made individuals reconsider their professional priorities, such as changing jobs, returning to school, moving to some other place, or even launching their businesses. At this juncture of change, many have worried about whether to hire a financial advisor or not!
Often, this one is considered as a rule of thumb – you can hire an advisor only when you can save 20% of your annual income. There are other popular opinions too. Financial advisors come to the rescue when your financial situation turns more complicated, or, it could be that you’ve recently received a huge inheritance from a parent. You might want to increase your retirement funds with the aid of that!
So, one important part of financial planning is deciding when and why to go for a financial advisor.
When is it time to hire a financial advisor?
While dealing in the stock market, during a bull market the stocks appear invincible. You seem to be doing very well as an investor. The market situation, however, changes overnight. And when it does, it delivers a pie in the face to all those who considered themselves to have mastered stock investing.
The stock market crash of March 2020 was an eye-opener. Investors got a taste of what the end of the long-term bull market could be like. Although the period was brief, it served to be a stark reminder about market ups and downs. Having an expert on your side, in the face of such exigencies, can make a huge difference.
I have tried jotting down some of the distinct situations when hiring a financial advisor is likely to be beneficial for you.
Get in touch with the best financial advisors in Los Angeles when –
- You just cannot resort to Google as the situation is too complicated.
- You are trying to develop a well-planned investment strategy
- You fail to keep your emotions out of all your financial decisions.
- Your retirement is drawing close
- You need some really good advice on taxes!
Don’t go for a financial advisor in the following situations…
- You’re confident in planning your investments and retirement funds
- You don’t want to be stressed with complicated plans and tax minimization strategies.
- You have just begun to earn and are nowhere even near your retirement days.
How much money should you have before hiring a financial advisor?
The usual idea that’s preached by financial advisors and investment planners is that unless you have an amount of $1,00,000 in your savings! That number could jolly well go up to $1million. The crux is that if the amount isn’t $1k, hiring your financial planner or tax attorney wouldn’t be worth it.
Hiring an advisor not always depends upon the funds available. It rests on a lot of other factors. Yes, funds do play a pivotal role. But, child planning, divorce, receiving a big inheritance, etc. are important determinant factors too.
