When you have any amount of money, you have three main choices of what to do with it. You can save it, you can spend it, or you can invest it. You may think you have the situation under control: you spend what you need to spend and you put the rest away. Or maybe you rarely have enough left over to put away. Maybe you feel it’s important to invest and you end up putting your extra income each month toward an investment. These are all potentially valid approaches to money, but each person’s (and family’s and business’s) needs are different and it’s important to make sure you are making the smartest choices for your money for both the long and short term. Here are a few of the top reasons why you may want to hire a financial planner.
Consider the Cost
It can be costly to hire a financial planner, so you need to decide if this is a cost you are willing to take on. Studies have shown that it is ultimately worth it to speak to a financial professional, as you earn more money making smart decisions in your investments and savings strategies. Many advisors will offer a free consultation so you can make an educated decision on whether or not financial planning is good for you at this time.
Long-Term and Short-Term Goals
One of the most important aspects of money management is taking care of your short-term goals. You need to make sure you have enough money to cover all your regular expenses like rent, food, student loans, and other bills. If you want to buy a house in the next few years, you need a strategy to save for a down payment. You also need to consider how much house you can comfortably afford without becoming house poor.
Long term–you will hopefully retire one day, your kids may go to college or graduate school, perhaps someone will get sick and you will need to handle large unexpected medical bills. You need to make sure you have enough money to get you through your day-to-day expenses while also setting aside a nest egg for yourself and perhaps your family members. Financial planning can help you pay off your bills while also set aside money to achieve your longer term goals.
There are so many companies to invest in–how do you know where to put your money to get the best return on investment? A financial planner can help you research stocks and can keep you on track with making smart decisions rather than emotional ones. You may feel like you want to jump on a stock that is rising rapidly in value, but doing so might end up costing you more in the long run.
Diversifying Your Portfolio
Your portfolio is a compilation of all the places where you have money saved and invested. A rule of thumb in money management is diversifying your portfolio, meaning you have some money in savings accounts and some money in investment accounts so that you are never reliant on just one area. A financial planner can help you diversify your portfolio so that your money is both safe and has the possibility of growing over time.
There are many reasons why hiring a financial planner can benefit you. At DeSantis, Kiefer, Shall, & Sarcone, we will make sure you feel comfortable with your financial plan. We will help you reach those long term goals so that they aren’t just dreams, but realities at the end of a carefully mapped path.