10 Reasons to Consider a Financial Planner

As a new year begins, it is essential to review your finances. Many workers and retirees are facing unprecedented economic changes in the near future. Home prices are falling…the stock market has collapsed...the automotive companies are on the brink of bankruptcy. Are your finances on the right track? A financial planner can help you with much more than merely investment advice. The following are 10 reasons to seek the guidance of a qualified planner.

1. Organize your finances. Many individuals lack the skills and discipline to manage their own finances. A planner can help create a budget, prioritize goals and objectives, and recommend ways to optimize cash flow.
2. Planning for retirement. Although building up a substantial nest egg is critical, it is equally important to have proper withdrawal strategies. A financial planner has many tools at his or her disposal to match your spending needs with your desired retirement lifestyle.
3. Receiving a large inheritance. Before making hasty decisions on how to spend or invest inherited money, it is best to seek counsel from an independent advisor. Such once-in-a-lifetime circumstances can involve financial as well as emotional factors.
4. Saving for college. Besides sorting through the vast array of investment options, it is wise to consider financial aid and tax issues. It is also important for families to weigh their retirement funding needs against college savings plans.
5. Confronting a financial crisis. A serious health problem, loss of employment or legal issue may require outside financial assistance to avoid bankruptcy or home foreclosure.
6. Career counseling. Planners can assist you with most of the financial considerations involved when facing job changes. This advice can focus on the optimal use of any separation package, how to rollover your 401(k), and how to seek job retraining without spending a fortune.
7. Selling or buying a home. An advisor can help you maximize the tax advantages of buying or selling a principal residence. In a challenging real estate market, other alternative methods of financing should also be explored.
8. Death of a spouse. The survivor should not make long-term decisions without getting an expert opinion on how to best handle the finances. Complex choices involving insurance, retirement assets and tax issues should never be handled by oneself in times of great stress.
9. Insurance review. Many people overlook or fail to adequately review their insurance coverage on a regular basis. A financial planner can assist you in analyzing your insurance including life, disability, long-term care as well as other types of general liability coverage.
10. Estate planning. It is best to have your “financial house” in order before a tragedy occurs. An advisor can discuss a diverse range of concepts including: wills and trusts, avoidance of probate, use of life insurance and various other estate planning matters. An attorney would then draft the necessary documents.