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6 Clear Signs You Should Hire a Financial Advisor

Regardless of your age and financial situation, making the decision to hire a financial advisor can be an extremely worthwhile and rewarding one. Even if you feel like you have a fairly good handle on your finances, meeting with a professional can help you clarify your goals and finetune your strategy.

There are times, however, when hiring a financial advisor is not just beneficial, but necessary. Here are 6 signs it’s time to consult a professional:

1. You’re in a Top Tax Bracket

If you’re a high earner in a top tax bracket, there’s a good chance you're paying more in taxes than you need to be. If you’re maxing out all of your retirement accounts but still paying high taxes every year, it may be time to meet with a professional who is well-versed in strategies like backdoor Roth IRAs – an IRS-sanctioned method for high earners to sidestep the income limits associated with Roth IRAs.

Financial advisors are experts in proactive tax planning and can help you identify both short- and long-term strategies that will minimize your tax burden and save you money now and in the future.

2. You’re Thinking About Retirement

Proper planning is essential for a happy, comfortable retirement. If you’re starting to ask questions like “When can I retire?” or “How much will I need in savings?”, that’s a good indication that it’s time to talk to a financial advisor to develop a detailed strategy. The earlier you start planning for retirement, the better, so don’t feel like you have to wait until you’re about to retire to talk to a professional about it.

3. You Have a Lot of Debt

If you’re dealing with substantial debt, especially if it’s spread out across multiple debt categories, it can be difficult to determine what to prioritize and how to pay it off most effectively. A financial planner can help you set realistic goals and develop a comprehensive debt pay-off plan to optimize your short- and long-term strategy for things like:

  • Student loans
  • Mortgage payments
  • Personal loans
  • Car payments
  • Credit card debt
  • Medical debt
  • Business debt
  • Collections accounts

4. You’ve Inherited or Come Into a Large Sum of Money

When you suddenly acquire wealth that you didn’t have before, you’re faced with new questions and decisions you’ve never confronted. Especially if you’ve just inherited wealth and you’re dealing with the turmoil of losing a loved one at the same time, it can be difficult to make these decisions on your own. It’s a worthwhile endeavor to sit down with a professional who can help you understand the fundamentals of financial planning so you’re able to successfully manage, preserve, and grow your wealth over time.

5. You’re Getting Divorced

Divorce is often difficult – both emotionally and financially. Working with a financial advisor along with your attorney can make a huge difference when it comes to managing and negotiating the financial details of your separation or divorce.

Once the legal process is complete, you’ll likely need to reorganize your finances and ensure everything’s in order. A financial advisor can be an invaluable resource during this time, helping you reevaluate your goals and make important decisions about investments, tax planning, and your overall financial strategy.

6. You’re Planning Your Financial Legacy

For many people, the primary purpose of building and preserving wealth throughout their lives is to benefit their loved ones or causes that are important to them when they eventually pass away. Organizing your affairs for the later years of your life and preparing for the eventual transfer of your wealth is one of the most important moments in your financial lifetime.

Seeking the council of financial planners who specialize in estate planning is a way to ensure your wealth is preserved and transferred in the way you wish it to be. In these times, perhaps more than ever, it’s vital that you hire a financial advisor that listens to you and truly understands your needs, desires, and concerns.

Comprehensive Financial Advice You Can Trust

Our financial Scorecard can give you an idea of where you are and whether or not you would benefit from speaking with a financial advisor. Whatever your financial situation or stage in life, our dedicated team of financial planners and professionals at Chatterton & Associates are here for you. We know that trust is earned through relationships over time, and we’re committed to providing reliable, trustworthy financial advice and guidance to ensure your short- and long-term financial health and wellbeing.


The Team at Chatterton & Associates

Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. Neither Royal Alliance Associates, Inc., nor its registered representatives, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

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