8 Reasons You Need a Financial Planner Even if You’re Not Rich

When you think of a financial planner, you likely think of the wealthy. It’s an understandable correlation—after all, the more money you have, the more decisions you need to make.

However, even if you’re not rich, you could absolutely benefit from one. Financial planners are skilled in managing money and helping people make good fiscal decisions. That’s the type of service that can do anyone good and there are many reasons why you might need one in the first place.

Let’s take a look at some reasons experts recommend working with financial planners.

You Need a Path to Achieve Financial Security

Financial security is a big thing, and it takes time to achieve, and sometimes you just get stuck. That’s where a financial planner can help.

They can look at the current picture of your finances and help devise a savings or investing plan that will help ensure security, especially post-retirement, when money matters even more.

You Have Goals

Do you have lofty goals for your money and you’re not exactly where to start? This is the perfect time to bring in a financial planner.

You can expect a meeting where you go over your income, expenses, and goals. Your financial planner will then come up with a plan—or several variations of a plan—to help you hit those milestones. Whether you’re looking to save up a significant sum for retirement, or you want to put money away to start a business, this should be your first stop.

You Need to Establish a Budget

Budgeting can help you stay on track with your finances. But sometimes, creating a budget can be difficult and you need to call in a professional.

A financial planner can take a holistic approach to your finances and ensure you’re not only hitting your milestone markers but also putting money away.

You Need Help With Tax Planning

Tax planning for most people is as easy as filling out a W-2 or a 1099 form. However, if you’re a business owner, an investor, or a freelancer, tax time can be a bit different.

Financial planners can help you set up a plan for your taxes because you are likely going to owe more when Uncle Sam comes calling. Not all financial planners handle these types of transactions, though, so inquire as to whether yours does.

You Need Estate Planning Help

Estate planning is extremely complex. Most of the work here is done by an attorney, but a financial planner can be beneficial in this area, too.

They can help advise you on which assets to place in the trust and earn potentially higher returns. Make sure your attorney and planner work together.

You Want to Establish a Retirement Plan

Having a plan for retirement is highly recommended. Winging it isn’t likely to work and currently, approximately 50% of American households aren’t adequately prepared.

Financial planners can help you set up a retirement account, and they can explain the different options available to you, both high- and low-risk, and how to make the most of the money you have to invest. They will also explain how much you need to put away to live the lifestyle you want in retirement.

You Want to Invest

Not everyone is familiar with investing. In fact, it can be a tricky subject understanding the stocks and the market, and how the two correlate.

A financial planner can help you with your investments. They can create an investment plan and show you a path to achieve the best success.

Your Finances Are Complex

There are a myriad of reasons why your finances may be complex. If you’re a freelancer or a business owner, for example, your taxes will differ a bit from the average American worker.

A financial planner can help you sort through the complexities and how to best put your money to use.

How Much Do Financial Planners Cost?

Financial planners go through intensive schooling and training. They also have to take a certification test to prove they have the knowledge to do the job.

Because of this, financial planners can be pricy, costing upwards of $200 to $400 per hour. The good news, though, is once you get past the initial meetings, you won’t have to see them often.

How to Find a Financial Planner

There are a few different ways you can find a financial planner, starting with looking at firms in your area. You can also ask friends or family for recommendations.

Take the time to read reviews and see if there are any complaints against the firm that should concern you. If you’re considering one who works independently, don’t be afraid to dig deep into their qualifications. Your money is on the line.

What to Look for in a Financial Planner

First, you want to be sure you’re working with a financial planner, not an advisor. They are different. A certified financial planner, for example, has a fiduciary duty to their clients. They have to put the client’s best interests above their own. Some financial advisors are fiduciaries, but not all.

Second, you want to make sure the CFP you work with has experience in the realm you’re seeking help. Don’t be afraid to ask for references.