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Do You Really Need a Financial Planner? Here’s What to Consider

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Since the COVID-19 pandemic, people have become more conscious of managing their finances. Many are building their savings and emergency funds by opening a bank account online. This allows them to grow their money through interest and secure their financial status during an economic crisis.

Besides creating a savings account, hiring a financial planner is another smart way to reach your financial goals. If you’re planning to hire one, here are things to consider:

You have financial disagreements with your spouse

You will need a financial planner if your finances are the source of tension in the household, especially if you and your partner have substantially conflicting ideas about handling money. Having a financial planner to help discuss money openly and productively will help you gain clarity while considering your shared and top values. This is very beneficial for couples if they want to develop their teamwork.

Couples who keep arguing about money throughout their married life often get stuck in a loop — they keep fighting over the same problems and never seem to work on a feasible solution at all. With a financial planner, you have a neutral third party to help both of you understand each other’s perspectives.

You have a tax problem

Many financial planners aren’t only good at analyzing financial statuses, but they also specialize in tax-planning services. But this doesn’t mean they are knowledgeable in tax law, just like a professional accountant, or help you file tax returns. A financial planner specializing in taxes can help you manage your tax liability from investment strategies and build your wealth by finding ways to reduce your tax liability.

More importantly, they can also figure out what to do if the state agency or the Internal Revenue Service (IRS) sends you a notice that you owe them taxes. Aside from helping you develop a long-term financial plan, a skilled financial planner will also help you determine the root cause of the tax problem and come up with a response before the deadline.

If the financial planner finds out that the IRS was correct about the discrepancies in your tax return filing and tax planning, they will help you regain the right footing to avoid making the same mistakes in the future. Otherwise, if the IRS makes the wrong judgment, the financial planner will help you develop a proper response to clarify things with the agency.

You need to get ready for retirement


There are plenty of uncertainties in retirement planning. If you don’t know where to begin with your retirement plan, a financial planner will help you start your journey. Retirement is everyone’s long-term goal, but it requires careful long-term planning. Often, you have to be investing regularly to reach your desired retirement figures.

A financial planner can also help you plan what type of assets to pass on to your heirs once you die. They specialize in estate planning or can work with an estate lawyer to identify your insurance needs, financial assets you want to pass on, and what to do with your investments.

An estate planning team may include a banker, lawyer, CPA, and planner. They need to work together to redirect your finances in the right direction. A financial planner will help you create a financial strategy that involves estate planning based on your priorities and goals.

You need help with portfolio building, and having a financial planner will help you establish your target goals and guide you towards achieving them.

You need to build a strong investment portfolio

Portfolio building is the process of optimally choosing securities by ensuring a balanced investment asset that grows efficiently with minimal risks to gain maximum returns. It includes various securities, such as stocks, bonds, and money market instruments.

A financial planner will help you better understand your current assets, future investment opportunities, and the potential risks for every investment option. They will also conduct a risk tolerance in your daily balance and during outlying events, such as economic recessions. They will address concepts, such as maximum drawdown and expected returns for the risks you’re taking.

There is no particular rule with hiring a financial planner. But there are a few things to consider if you plan to hire one. If you’re looking for greater financial security and sound money-related decisions, you might want to hire an advisor. Aside from the options above, you need to do your homework by researching and figuring out how their services can help you with your financial management.

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