7 Signs You Need to See a Financial Consultant

Written by
Rebecca Smith

Published
Jun 24, 2019

Jun 24, 2019 • by Rebecca Smith

Millions of Americans around the country are struggling with their money.

Indeed, the average debt-per-capita is around $12,000. In total, according to the same source, the total personal debt amounted to $3.9 trillion at the end of last year. That’s a lot of commas and zeros!

Clearly, the financial life of the average American is far from straight-forward.

In the pursuit of monetary stability, seeking professional support can make a big difference. After all, it’s a financial consultant’s job to help people with their money!

Their advice can be invaluable in all manner of scenarios and events. Their input may be exactly what’s required to avoid the same financial woes of people around the US.

But how do you know when the right time is to meet with one?

Keep reading to discover 7 top signs you should see a financial consultant.

1. You’re Cash Rich

Everyone loves the idea of having masses of cash.

However, in reality, it’s only helpful to a certain extent. Having some set aside for a rainy day and for monthly expenses is great. Equally, if it’s a choice between cash and no cash, you take the money and run every time!

But having all or most of your savings tied up in cash is a bad sign. That money can be put to far better use. In reality, the interest rates of bank and savings accounts are horribly low. Compared with other strategies, your buying power will be restricted as time goes by.

That’s bad news if you’re saving for retirement.

Investing in stocks and bonds is a better way to do more with your cash. However, that can be a complicated business. A financial advisor will be able to tell you where to start.

2. Poorly Performing Investments

Maybe you’ve already had a crack at investing.

You’ve got a bunch of money tied up in stocks and shares. However, your money has been taking a hit. The investments don’t seem to be going your way. The value of your portfolio is only going down.

Now, that often happens as a natural part of investing. It’s just the way markets work. However, extended periods of decline, contrary to market trends, are never good. You might feel a bit stuck. After all, if you weren’t, then you’d already have turned the situation around!

Consider hiring a financial consultant. They will be able to highlight the problem and recommend appropriate fixes.

3. Dealing with Debt

As we’ve already seen, debt in the US is a major problem.

Households around the country are crippled with it. Unfortunately, debt is a slippery slope. For example, someone takes on debt and finds they can’t afford the repayments. To rectify the situation they take out another loan (in a process called debt consolidation) to pay off the original one.

This is an easy way to descend into an ever-increasing pit of debt.

Financial advisors are commonly called upon to create a plan to get out of it. They’ll be able to work with your budget to recommend solutions for paying off debt as quickly as possible.

4. Budget Support

Let’s be honest, most of us are great at spending money.

But we’re not so hot at saving it!

Unfortunately, that creates a recipe for financial struggles. Likewise, difficult budgeting makes it hard to ever meet particular monetary goals. Examples might include paying off debt, buying a house, purchasing a new car, traveling around the world, or saving for retirement.

Enter financial consultants. They’re experts at setting budgets and helping you stick to them. Speak with an advisor and let them know your goals. They’ll be able to assess your current financial situation and work out the best approach to meeting them.

5. Your Personal Situation Has Changed

Life is rarely static.

We all exist in a constant state of flux, right? Our current state of affairs is rarely the same for long. Job changes, family changes, social upheaval, house moves, holidays, aspirations, goals…Everything is changing all the time.

Sometimes these changes call for new financial considerations!

For example, marriages entail lots of careful monetary decision-making. There are tax questions, merger questions, investment questions, prenuptial agreements, household management, bank accounts…the list goes on.

Similarly with job changes. Let’s say you get a big promotion with an accompanying raise. Suddenly you have much more disposable income. You may decide to make the most of it in terms of new investments…

Regardless of the particular change in your life, professional financial advice can help. They’ll be able to walk you through the decisions to make, the best financial steps forward, and so on.

6. Tax Considerations

As frustrating as it can be, tax is a fundamental part of life.

Tax plays a bigger role as you begin gathering greater wealth. It’s in your financial interest to speak with an advisor who can help you manage them.

For example, there are many tax breaks out there that you might not even know about. Advisors can direct you to relevant opportunities.

7. You’re Planning Your Estate

Ironically, estate planning (i.e. sorting out the finances for when you die) is a vital part of life.

Everyone should be proactive in getting their assets in order. There’s a lot to think about: cash holdings, bank accounts, insurance issues, property, allocation of finances, and more.

It’s a complex, time-consuming, multi-faceted situation. There’s a lot of room for error. A financial adviser can play a pivotal role in supporting you through it.

Time to Hire a Financial Consultant

There you have it: 7 key signs that you need to see a financial consultant.

Finance is rarely a straightforward part of life. That’s evidenced by the sheer amount of consumer debt currently in existence. It’s all too easy to get into financial trouble or fail to capitalize on opportunities.

Expert advice can make all the difference. However, it’s sometimes hard to know exactly when to call upon it. Hopefully, this article has highlighted some primary instances where it may come in handy.

Like this piece? Be sure to read more financial advice articles on the blog. Head to the ‘investment’ topic header to get started.