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5 Signs You May Need a Financial and Investment Advisor Thumbnail

5 Signs You May Need a Financial and Investment Advisor

DIY is having a moment. Thanks to the internet and prolific sharing on social media, the time is ripe, and the knowledge is accessible for the average person to easily dabble in new skills. From crafts and costumes to home improvement and culinary creations, people are enjoying both the art and seeming cost-efficiency of doing projects themselves. But we have all seen the Pinterest fails, and there truly are some tasks that should be left to the experts, like managing money. Though it is certainly easy enough to draft a budget and manage a spreadsheet, if a person does not have the proper knowledge, they will likely have a difficult time reaching their fiscal goals. A Financial Advisor knows the ins-and-outs of the markets, and can provide guidance, create a custom plan for your situation, and help maintain your trajectory to hit both short- and long-term goals. If you are still not sure whether you should hire a Financial Advisor, here are a few indications that you should take this important step.

You are a High-Earner in a Top Tax Bracket

We all know that saving is key to enjoying your golden years. However, if you are maxing out on retirement savings through a 401(k) plan or traditional individual retirement account, but are still in a top tax bracket, you are not doing yourself any favors. A Financial Advisor knows tax-saving strategies and can help you take advantage of options like Health Savings Accounts that can multiply your tax benefits while lowering your obligations before and during retirement. Without expert guidance, it is likely that you will keep paying more taxes than you need to.

You Want to Enjoy Your Retirement

If you start thinking about retirement when you are about to retire, it is already too late. In addition to tax-saving strategies, a Financial Advisor can put together a diversified, customized retirement plan to keep you on track and ensure that your assets safe. Plus, they are a professional entity to answer to, and dissuade you from making impulsive purchases that may affect your long-term goals.

You Need an Impartial Opinion

It is normal to not always agree with a partner or spouse, but unlike paint colors or what local restaurant serves the best prime rib, financial matters can cause a lot more strife in a household. If you and your significant other are not on the same page for how to best manage and invest your finances, a Financial Advisor can provide guidance to help you work together as a team toward shared goals. A Financial Advisor bases their actions on logic and data, while offering an unemotional perspective toward money management that does not fluctuate with market volatility, the fear of missing out, or an opinionated spouse.

You Unexpectedly Owe Money to the IRS

Receiving a notice from the IRS is not something to be trifled with- especially if it says you owe back taxes. To properly navigate the deadlines, requirements, and many nuances of IRS or state agency demands, you will want the help of a tax-focused Financial Advisor. In addition to guidance through the process, they will best be able to identify the underlying issues that resulted in these unexpected obligations and help eliminate further potential tax issues from arising. This is not likely something that you would be able to do on your own, no matter how simple it may seem to fill out a few forms.

Procrastination is Your Middle Name

You know you should be investing money, but with so many options and a seemingly infinite amount of information to research, it is difficult to know where to start- especially if you do not have time or an innate interest in the subject. A Financial Advisor can snap you out of this Analysis Paralysis by doing the research and steering you toward the right types of accounts that ensure your investments are in an optimal place and working for you.

The very best investment toward achieving your short- and long-term fiscal goals may be hiring a Financial Advisor. Your financial security is not something that should be taken lightly, and they are the experts that can be trusted to deliver results. So, whenever you feel the pull to take a DIY approach to money management, just remember that home improvement project, where you ended up calling the plumber/painter/electrician anyway. Please contact us for help. You will be glad you did.

The advice from financial planning experts can be crucial to ensuring that your assets and family are well taken care of. At Sorensen Wealth, we work with our clients to understand their needs and goals, then devise and implement customized wealth-management solutions to achieve these benchmarks. We encourage you to visit the Sorensen Wealth website for more information and contact us today.