Who Needs A Financial Advisor


Let me preface with the fact that I am a bit bias (obviously), as well as pretty much every financial advisor. We think you need us to guide you. However, the fact is that is only partially true. We want you to want us, but there is only a portion of people out there really who needs a financial advisor.

That does not mean that you wont benefit from having a financial advisor, but there is a difference between needing and benefiting. Everyone can benefit from a financial advisor, they help you keep track of funds, avoid painful IRS penalties, invest widely, manage estates, and much more. However, this article is about who needs a financial advisor, so let’s cut to the chase.

Who Needs a Financial Advisor

Who Needs a Financial Advisor

One of the large sub-sets of people who need a financial advisor, are those who do not have time. Many of us our busy, but we all know (and may be ourselves) those people who simply never quite working. I know personally, I work upwards of 60 hours a week, easily putting in 8 hours every single day of the week. For people like myself, it becomes difficult to manage finances. Who has time to spend hours filing taxes? Not me, instead I pay someone a few hundred dollars to file them for me.

If you (like me) do not have time to file your taxes or manage finances, please be sure to find a qualified financial advisor. Just grabbing any old person to file your taxes can be dangerous. There are heavy penalties for misfiling your taxes and it can cost you thousands of dollars if you make a mistake. For thoughtful questions to ask a financial advisor prior to hire, please read: How to Choose a Financial Advisor in 10 Questions and/or 40 Curveball Questions to Ask a Financial Advisor.

jar-of-money-Who-needs-a-financial-advisor

Another group of people who needs a financial advisor are those who have too much money. You may be wondering, too much money? Is there such a thing? In the case of managing ones financials there definitely is. Imagine if you made two thousand dollars a day, using several sources of income, with various tax levels, and perhaps even different regulatory state laws (depending on the scenario). The point being, managing large financial portfolios can become vary complex on you own, especially with no experience.

Managing taxes and financial accounts of this nature can be handled by a CPA or Certified Public Accountant. Certified Public Accounts are the top qualified accountants and should be used for lager accounts. Since CPAs attach their name to every document/account they work on, if something goes wrong (i.e. someone starts stealing money, etc.) they are legally liable. In other words, CPAs should be the safest bet when you need someone to handle taxes or accounts that are too large to handle for yourself.

Who Needs a Financial Advisor - Marriage

A couple of 14-carat gold wedding rings. Picture taken in Brazil, by Jeff Belmonte

Marriage can also be a group who needs a financial advisor. Marriage is a difficult processes financially. Most of the time two people have to merge both of their accounts into one account. Other times, the couple keeps separate accounts, but merges financially. In even other cases, there is no merging of the finances at all. In either case, the complexities in the marriage process (financially) can be difficult to navigate. Therefore, I would suggest hiring a financial advisor of some kind to help you along the way.

In regard to marriage, financial advisors can offer even greater assistance than just merging finances. Marriage offers a “gold mine” in expense sharing and tax deductions. Hiring a financial advisor to aid you and your loved on in navigating the marriage process will lead to added benefits you may not consider. For example, married couples can share health insurance, you can submit joint tax returns, etc.

Who Needs a Financial Advisor - Home Buyers

Home buyers are a large group who needs a financial advisor. As I have mentioned before, managing estates are one of the major reasons to hire a financial advisor. They enable you to spend less time worrying about the laws, expenses, etc. and allow you to comfortably and confidently buy a home or investment property. There are thousands upon thousands of laws and regulations in purchasing and maintaining an estate.

Even if you are fairly good with numbers and able to manage large sums of money, it would be a good idea to hire a financial advisor when buying a home. The laws differer between Countries, States, Counties, and even Cities. It is important that you hire a local financial advisor to guide you through the process and ensure you save as much money as you can, whilst not breaking any laws.

Who Doesn’t Need a Financial Advisor

To be honest, I could go on and on about this all day. Everyone can use a financial advisor, with the ever growing number of tax laws (currently tax code is over 70,000 pages). However, in many cases they are not required, they just offer an improved method of accomplishing a task. For example, if you have time to file your taxes and are an average American you can use TurboTax, which only costs $40 – $80 and will easily be able to complete your taxes accurately. Essentially, if it is “business as usual” you likely do not need to go out of your way to find a financial advisor.

Only when a unique situations or complex situations, present themselves will you need any form of financial advisor. If you, at any point, become overwhelmed with a particular financial task you should definitely seek financial advisor. On the other hand, if you feel confident, can read and understand the laws, and perhaps are a financial advisor yourself, you clearly do not need a financial advisor. The one clear exception being, buying a house. Everyone should definitely hire a local financial advisor when purchasing a house to ensure all of the city, county and state requirements have been met.

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