10 Reasons to Call a Financial Advisor
Working mostly with educators and middle-class families, I’ve run into many people who are skeptical about the value of a financial advisor. Many people think they have to be worth millions in order to consult a professional, or they think their employer's retirement plan is all they need. Today’s blog is meant to provide some education about when and why you’d need to call a financial advisor.
Let me just say that almost every adult could benefit from a financial advisor. Managing your money is important - no matter how much you earn. Here are 10 reasons to meet with someone like me!
Set Up Your Initial Financial Plan
No matter your income, you will have only so much money to cover all of life’s necessities - and if you’re lucky, some of the fun times, too! A great first step, especially if you’ve never worked with a financial advisor, is to start with a simple consultation. My office even schedules these online.
In an initial consultation, a financial professional will help review your goals. This could include identifying ways to save more money in your monthly budget, setting up an educational savings plan for your children or grandchildren, and calculating what you’ll likely need for retirement.
2. Revisit During Life Changes
Once you have an initial financial plan, life has a habit of disrupting it. John Lennon once said, “Life is what happens when you’re busy making other plans.” There will always be change - and while some of the changes are expected, some are not.
Life changes could include a new job, a new child, a marriage, or a divorce. These major life alterations should trigger a phone call or meeting with a financial advisor.
3. Financial Market Changes
Your life isn’t the only thing changing. The world around you has a tendency to do that, too!
From new tax laws, to volatile stock markets, the fluctuation of the world around you can sometimes mean change for you, too. If you aren’t sure what financial news means to you, give your financial professional a call. She or he can explain to you how, if at all, the changes may impact you. Whatever the ups and downs of the laws and markets, a financial advisor can explain it all to you - and help you identify any adjustments you need to make to your personal financial plan.
4. Creating a Retirement Plan
Another absolutely crucial time to see a financial planner is to create your pathway to retirement. Even if your workplace offers a plan, such as a 401(k) or a 403(b), it can be confusing to set it up alone - no matter if you’re new to your career or have been working in it for years. Retirement plans are also not “one size fits all,” by any means. Instead, understanding your personal goals, and tailoring a unique plan to fit your needs, is something a financial advisor can do for you.
Knowing how much you’ll need for retirement, determining the proper timing, and even which ways to invest are all things I can walk you through, providing assistance every step of the way. No matter what your age, it is never too early (or too late) to start a plan for your Golden Years.
5. Understand Important Dates and Deadlines
Life is busy. Life is hard. Keeping track of important deadlines can be tough to do, and finances are no different.
Important dates come and go throughout the year. From tax forms to opportunities to change plans or investment amounts, a financial planner can keep it straight for you. Did you also know there are “catch-up” dates where you can add contributions? We do! Don’t try to keep it all straight alone.
6. Estate Planning
Are you or your family members financially set should anything happen to you? It isn’t pleasant to think about - but someday, you won’t be here anymore.
Upon your death, do you want to have a say in what happens to your assets? Planning for these inevitable times can be tough, but a financial advisor makes it much easier. We can make sure your financial assets are set up to be distributed the way you want them to, and also provide referrals for trusted people who can help you set up a will.
7. Gifting Money to Loved Ones or Charity
Many people don’t want to wait until their death to financially bless others, which could include charities that are near and dear to your heart.
If you want to be sure you’ve checked all the appropriate legal boxes - from getting tax breaks to understanding limits - a financial advisor can be a valuable tool. Be sure your beneficiaries are getting the most out of your gifts by consulting a professional.
8. Creating a Safety Net
Many financial professionals recommend saving 3-6 months' salary in the event of an emergency. This could include an unexpected accident, illness, or layoff. While we can’t predict these life emergencies, we can prepare for them financially. An advisor can assist you in making choices that create this emergency fund, without feeling like you’re suffering in the meantime.
9. Clearing Up Your Credit
Do you know your credit score? Is it a bit lower than you’d like? Do you have some big goals in the future - a new house, a new car, a big vacation, etc. - that are going to require you to take out a loan?
A financial advisor can provide tips for boosting your credit score. While there are plenty of online tools to give you your score, it can be tough to understand which changes will make the biggest and best impacts. Paying off high-interest loans, consolidating debts, and paying bills on time can all make a difference.
But to find out how your personal score can be most easily improved, talk to a trusted financial professional. Just like retirement, there is no “one size fits all” solution. Increasing your credit score often takes a personalized approach.
10. Insurance Coverage
Just like that financial safety net, there are other ways to prepare for life’s unexpected disasters.
My husband Reegan Rehm owns Rehm Insurance, and he can evaluate your insurance needs. Is your personal property covered in the event of a fire? Do you have the right amount of life insurance? Financial disasters often accompany life’s disasters. Major automotive accidents can leave you unable to work. A flood can destroy your home and its contents. Having the right insurance plans in place can prevent such catastrophes from leaving you in financial ruin.
Make an Appointment Today!
Chances are, one or more of these important times have passed you by since your last (or even your very first) consultation with a financial advisor. Don’t let any more pass you by! Find a time that works for your schedule with our online appointment desk. Or, just pick up the phone and call (507) 304-7017.
And, of course, you don’t have to wait until there is a major problem. While these top ten reasons are important occasions to schedule an appointment, you never have to wait until you’re stressed out to call my office. We’re here for you, anytime!
Reegan Rehm, and Rehm Insurance and Financial Services are independent of, and not affiliated with, The Lincoln Investment Companies. Insurance products are not offered through The Lincoln Investment Companies.
