People often wonder if now is the right time for them to hire a financial advisor. And if not now, then when? While almost anyone could benefit from working with a financial advisor, there are certain times in life where it really pays off to be working with one.

1. You have a major life event

Major life events are also major financial events. Whether it is graduation, marriage, having kids, buying a house, starting retirement, or confronting a disability, the changes can be sudden and, for many, the impacts are unanticipated.  “I’m an engineer, I love math, but I don’t know all the inputs.”  Sound familiar? Major life changes, as exciting as they may be, also tend to bring on a large amount of stress. This is why it is beneficial to bring in a financial advisor for essential support, to better navigate the waters ahead, and to adjust to the new normal.

2. You have a large change in household income

It is often a good idea to get a plan in place for your finances when you expect an increase in income.  A plan can help keep you grounded and ensure you don’t fall victim to ‘lifestyle creep’ by using all of your new found money for short term satisfaction. It’s totally okay to raise your standard of living, but remember to also to plan for future needs and goals.  A financial advisor can help you understand where and how to use this extra income and to help plan or invest for the future ahead.

3. You recently received an inheritance

Receiving an inheritance is a mixed blessing.  As fun as it would be to go spend it, that’s usually not your best option. Your family member worked hard for this money so you may want to make sure it is used wisely. Should you pay off debt, restructure the financial portfolios, buy a house, start a college fund? Hiring a financial advisor can help you to assess opportunities, to do proper diligence, to execute on approved plans, and to manage admin burdens.  Ultimately, the goal is to overcome obstacles and to make sure your money goes the farthest.

4. Your portfolio isn’t performing well

Many investors have legacy portfolios that are not performing well.  The reasons are many, but two of the most common pitfalls is poor portfolio construction and weak risk management.  The result can be returns that fall short of your needs and expectations. To rectify this problem, you’ll need more than an online roboadvisor or well decorated concierge services.  You’ll need a skilled financial advisor to assess your existing holdings and to formulate a custom portfolio.  And because the path to even average returns is bumpy, you need a capital preservation strategy that better supports your goals and risk tolerance.  

5. You are going through a divorce

No one wants to experience what it is like going through a divorce. Divorces negotiations can be messy, emotionally draining, and financially stressful. Decision making goes beyond deciding who gets what since divorce has a seismic impact on long-term finances. Don’t go through this time alone.  Let a professional help you to craft a plan and to manage the risks you face, while helping you during this emotional time to focus on and achieve what is most important. 

6. You are too busy and you are ready to delegate 

Life can be crazy busy.  For most of us, it always feels like there is always another task to do. For many people, hiring a financial advisor is all about taking tasks off their plate. Business owners, for instance, find it more practical (and profitable) to focus on top line revenue.  There’s always a need for an A-team to delegate to for critical project work, extra diligence, title or document handling, or key meetings.  We all have a limited amount of time. Shouldn’t you focus on the things you are best at and outsource the rest? If so, then hire a financial advisor to expand your plate and to open more time in your schedule.