6 Signs You Need A Financial Advisor

Planning

6 Signs You Need A Financial Advisor

Do you need a financial advisor? Here we look at six telltale signs that it’s time for you to get a professional to help you manage your finances.

Published on 28 August 2017

Financial management and investing are lifelong endeavors. Some people prefer to manage their own money and chart their own financial course as they journey through the various stages of life. Others opt to engage the services of a financial advisor, who can help show them the way through the ever-changing financial landscape and enable them to achieve their goals.

Having a professional financial advisor to assist you with your financial needs can take away the hassle, save you precious time, and enable you to attain a lasting sense of financial security and success. Of course, there is a price to pay for wealth management services, but a good financial advisor is well worth it. A financial advisor will be able to devise and implement a tailor-made financial and investment plan for you – which will put you in a better place, financially speaking, over the long haul.

But how do you know if you need a financial advisor? Here are six signs that it may be time for you to engage the services of a professional to help manage your finances.

01.

Entering the workforce

The biggest thrill of receiving your first paycheck is the financial independence that comes with it. However, are you ready for the responsibilities that this entails? Many young adults end up racking up credit card debt shortly after entering the workforce due to bad financial decision-making and planning.

While you may think it’s still too early to start planning for retirement, it is never too early to start saving up for your future. With the right saving and investment plans and tools, over time, even the smallest amounts can grow substantially. But where and how to start? This is where a professional can help.

02.

Job promotion

A promotion at work usually comes with a substantial pay bump. Instead of saving the additional amount in your bank account, with its paltry interest rate, why not invest it and grow your money exponentially?

As your earning power increases, so do your living expenses. Hence, you should look into engaging a financial advisor to work out feasible retirement and investment plans that best suit your specific needs and financial appetite, so that you can retire comfortably down the road.

03.

Marriage

Marriage is a lifelong commitment, but a lavish wedding celebration and bad financial planning might just cause you and your partner to start this new phase of life in debt. A financial advisor will be able to assist you as a couple with suitable saving and investment plans based on your combined incomes. This can help the both of you save and grow your money so that you can afford your dream wedding and buy your first home without breaking a sweat or ending up in debt.

04.

Starting a family

Children may be the best gifts for us, but they certainly do not come cheap. From diapers and milk formula to pediatrician visits and education, being able to afford the essential expenses involved in raising a child requires a great deal of financial planning. In fact, the average cost of raising a child from birth to the age of 21 in Singapore is estimated to be around S$300,000 (US$220,460).

Besides getting your newborn a hospitalisation and accident plan (which are essential considering how often children get sick and injured), you may also want to consider an endowment plan that will help you cover the cost of your children’s education fees when they get older. A financial advisor can help you formulate this plan.

This may also be an opportune time to look at your existing plans and ensure that should anything unfortunate happen to either or both of you, your children would still be provided for. A financial advisor, along with an estate planning attorney, can develop an estate plan for you.

05.

Starting a business

Leaving a stable income to start a new business can be a daunting experience. Besides ensuring that you have sufficient funds to cover your day-to-day operational costs for at least six months to a year, you will also need to explore other strategies to maximise your cash flow and profitability.

A good financial advisor will be able to advise you accordingly, and their expertise can benefit your business and make you more financially savvy. Moreover, as your business starts to generate revenue, you may want to seek professional advice on how best to invest the profits – either back into your business or into other investment vehicles.

06.

A family member with a chronic disease 

Taking care of a loved one with a chronic disease at home is both emotionally and physically demanding. Furthermore, it also demands a lot of financial attention. Since many diseases are long-term medical conditions, you may want to consider taking up a suitable investment or saving plan to help ease your financial burden in the long-run.

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