If you\u2019re thinking about hiring a financial advisor, chances are that something big has taken place in your life, and you\u2019re looking for advice, support and guidance.\u00a0 It might be that you\u2019ve gotten married, or had your first child.\u00a0 It might be that you\u2019ve received a big promotion at work, or a significant pay raise.\u00a0 Maybe you have questions about your employer\u2019s benefits package. Or maybe you\u2019re wondering how you can simultaneously save for retirement and your child(ren)\u2019s college education, while also paying off your own student loans.<\/p>\n
As a young professional, you may have lots of questions about your personal finances, and you may be unsure whether you\u2019re making the right decisions.\u00a0 A good financial advisor can help you answer all of these questions., and provide you with peace of mind that you\u2019re on the right path.<\/p>\n
The term \u201cfinancial advisor\u201d is a bit vague.\u00a0 Unfortunately, weak regulation of the financial services industry means that virtually anyone can call themselves a financial advisor, and many people do just that.\u00a0 In the aftermath of two historic financial crises \u2013 the 2000-02 dot com crash and the 2007-09 Great Recession \u2013 that severely damaged the reputation of the industry, many stockbrokers, insurance agents and commission-based salespeople have tried rebranding themselves as financial advisors, in an effort to restore their credibility.<\/p>\n
A good financial advisor can be thought of as a coach, or a co-pilot on your boat.\u00a0 Their role is to help you define and prioritize your goals and objectives, and then help you design a robust plan to achieve them.<\/p>\n
The right advisor will be able to help you with many aspects of your financial life, including but not limited to:<\/p>\n
Most people don\u2019t wake up one morning and decide to hire a financial advisor.\u00a0 Instead, there\u2019s usually some important event or life change that causes them to seek out the advice and guidance of a professional.\u00a0 For young professionals like you, what might be a reason to look for a financial advisor\u2019s help?<\/p>\n
As a young professional with a career that\u2019s off to a great start, you\u2019ve begun building a solid financial foundation. How do you know when it\u2019s the right time to hire a financial advisor?\u00a0 One good rule of thumb is that when either your household income or your investment assets reach six figures (i.e. more than $100,000), it\u2019s a good idea to look for help.\u00a0 Studies of investor behavior have shown that as the \u201cnumbers\u201d get bigger, a person\u2019s stress and anxiety about their decision-making increase, too.<\/p>\n
A financial advisor can help you feel more comfortable with your financial situation by acting as an independent, objective resource.\u00a0 And if your advisor is a fiduciary<\/span><\/a><\/strong><\/span> (more on this below), you can take comfort from the knowledge that they must always act in your best interest.<\/p>\n If you\u2019ve recently received an inheritance or other financial windfall \u2013 perhaps from your employer going public, or the exercise of stock options \u2013 you may want help with understanding how these resources will impact your financial plan.\u00a0 What will the tax consequences be?\u00a0 Does it mean that you can now afford to send your child(ren) to private college? Can you buy that vacation home on the lake? Should you prepay your mortgage, or plan to retire sooner?<\/p>\n A good financial advisor can help you understand what\u2019s possible, and how all of these important financial decisions are inter-related.\u00a0 And using sophisticated planning software, your advisor can show you the impact of one or more of these \u201cwhat if\u201d choices on the other aspects of your plan.<\/p>\n <\/p>\n <\/p>\n Divorce can be very emotionally and mentally taxing.\u00a0 In addition, it can be financially devastating, because the income and assets that previously supported a combined household now have to support two separate ones.<\/p>\n A good financial advisor can help you navigate the settlement process, negotiate an equitable division of marital assets, and help ensure that you avoid financial mistakes.\u00a0 If your advisor also holds the CDFA\u00ae credential<\/a><\/strong><\/span>, they\u2019ll have specific expertise and training in the area of divorce financial analysis.<\/p>\n If you\u2019re preparing to start a family with your spouse\/partner, or have already done so, you may want help planning for your child(ren)\u2019s future.<\/p>\n A good financial advisor can help you create a plan to pay for college, the cost of which continues to go up faster than the overall rate of inflation.\u00a0 And your advisor can help ensure that your family is protected for the future, by helping you select the right type of insurance coverage, and connecting you with an experienced attorney to prepare your estate plan.<\/p>\n As soon as you started your career, you probably realized that taxes affect almost every aspect of your financial life. A good financial advisor will be able to work with your accountant or CPA to ensure that you avoid potentially costly errors, while paying as little tax as you\u2019re legally required to.\u00a0 If you own your own business, that may include setting up a company-sponsored retirement plan.\u00a0 If you\u2019re climbing the career ladder at a corporation, it may involve stock options, restricted stock units, an employee stock purchase plan, or a deferred compensation program.<\/p>\n Perhaps after reading this you\u2019re more convinced than before that you can benefit from the advice and guidance of a trusted financial advisor.\u00a0 But, you also know that many in the financial services industry hold themselves out as financial advisors, without truly acting in that role.<\/p>\n Consider using a prospective advisor\u2019s professional qualifications as your first filter. While financial advisors can hold a variety of professional credentials, many of these designations lack substance.\u00a0 The two credentials considered the \u201cgold standard\u201d are Certified Financial Planner\u2122 (CFP\u00ae) and Chartered Financial Analyst (CFA).<\/p>\n Now, where can you find one?<\/p>\n You can find qualified advisors in the following organizations:<\/p>\n The National Association of Personal Financial Advisors\u00a0(NAPFA)<\/a><\/strong><\/span><\/p>\n Garrett Planning Network<\/a><\/strong><\/span><\/p>\nYou\u2019ve Received An Inheritance or Financial Windfall<\/strong><\/h3>\n
Want to learn more about financial planning? Contact our team at Springwater Wealth today to learn how we can help you develop a plan for your financial future.<\/a><\/strong>\u00a0<\/span><\/h2>\n
You\u2019re Going Through a Divorce<\/strong><\/h3>\n
You Have Children<\/strong><\/h3>\n
You\u2019d like help with tax planning<\/strong><\/h3>\n
Where can you find a financial advisor?\u00a0<\/b><\/h2>\n