4 Signs You Need Financial Planning

Identify how, why and when you may need help with your comprehensive financial planning—and how and when to get it

Do you need a financial advisor? The answer is yes or, well, maybe. Without a financial advisor, we usually get our investment information from friends, family, or even worse…strangers on the internet. Yikes.

Most people aren’t always too honest - or knowledgeable - when it comes to money anyway. Not only do 75 percent of people lie about their income on a first date, but 66 percent of those liars are willing to date again if the other person finds out. People aren’t trustworthy when it comes to money, so why would you expect them to be knowledgeable about it?

We all have limited time and energy. We can either spend that time learning as much as possible about investing, paying someone to do it for us, or best of all, a little of both.

Bringing on a financial advisor can make sense for a lot of different reasons, like if you want help with things like taxes, retirement planning, estate planning, business intricacies, investment guidance, college funding or any number of other personal finance issues that take a lot of time and energy to understand. So, let’s take a look at 4 reasons you might need a financial advisor:

Reason 1: You’re extremely busy

Perhaps one of the most common reasons that people often outsource some, or all, of their financial lives to a professional is simply due to the fact that they’re busy.

Business alone doesn’t necessarily justify this though, as someone can be busy and not have any need for financial assistance, either due to lower income, or just a pretty simple situation overall.

So, if you happen to find that you’re both extremely busy and have a significant amount of money to be managed, or a more complex money situation overall, then hiring out some or all of this process might have a great ROI for you and your family.

Reason 2: Your business or investments are complex

There are many different business and investment scenarios in which it might make sense to bring a financial advisor on board as part of your team. The larger and more complex your business or investment undertaking becomes, the more loose ends there are to tie, more risks involved, and overall just more work to be done just to keep your finances in order.

One of the most prominent examples of this is undoubtedly real estate, which is a notoriously complex and bureaucratic industry, and one that comes with equal amounts of both liability risk and profit potential.

Taking this as just one example, it makes sense to have a CPA in your corner to help you manage your tax liability, insurance, set up and construct business entities like an LLC, and navigate the bureaucratic, risk-laden process as a whole.

Maybe you don’t have a traditional business though, maybe you just have a lot of investments, or maybe you’re even involved in venture capital. There are a lot of scenarios such as these that call for assistance from a professional planner, and can make an investment in one well worth the expense.

Reason 3: You’re getting ready to retire or crafting an estate plan

Retirement and estate planning are two of the most complex aspects of the financial world, and not easily navigable alone, especially for those with larger families, larger estates, or anything unique about their situation.

Both estate planning and retirement alike have a lot of subsequently underlying variables to get straightened out, and there’s a dizzying amount of options to choose from. It’s like each variable has its own variables.

This process will involve everything from life insurance, taxes, trusts, wills, Medicaid, assisted living expenses, asset transfers, and a lot, lot more really nuanced, obscure, niche stuff that is just begging to be handled by someone that does this for a living.

To top it all off, this can be a difficult, emotional part of the life of a family, especially for the elders who are doing the planning, and they’ll need all the help and support they can get throughout the process.

Reason 4: You can afford it and just enjoy the counsel

They say there’s wisdom in a multitude of counsel, and this proverb remains somewhat true in the world of finance too. There are lots of options out there to choose from, and a lot of complicated, nuanced financial scenarios you might come across.

Needless to say, there are plenty of scenarios in which having sound advice from a professional can help guide you through these various situations. Learning all you can about everything finance is a very prudent and admirable thing to undertake, but this doesn’t change the fact that we can surely never know it all, and having the wisdom of an experienced professional on our side is an invaluable thing.

Tying it all in

It goes without saying that there are reasons ranging from big to small to consider bringing a financial planner into your life. It might be something as simple as help planning for college, or as convoluted as a massive real estate business, but the goal of both is the same, to lighten the burden on you and ensure a high-quality financial outcome.

All-in-all, your financial wellbeing is one of the most important aspects of an overall healthy life, and it should be treated as such. Financial planners can help with this, but you can help yourself too. How? By doing your to-do list items and spending at least 3 minutes weekly in the Pocketnest app, duh. 😉 We'll help you create and stick to a comprehensive financial plan. And, we'll help you identify gaps in your plan—the very pieces we'll encourage you to unleash your financial institution and/or financial planner on!