Seeking professional help is always a good thing. Whether it is seeing a doctor for an annual check-up or a dreaded visit to the dentist, we entrust professionals to monitor and manage various aspects of our lives for our own benefit.
Working with a financial planner is no different. Although it does not rank as important as having access to a doctor, a financial planner can offer individuals various benefits in terms of money management through various periods of one’s life.
One of the myths that some individuals have about working with a financial planner is that you have to be wealthy; not true. Deciding to work with a planner is a process which involves individuals sitting down and considering if they experience the following seven signs.
1 – Having long-term goals for your money
Whether it’s having a house when you are 55-years-old or being well off before you retire, long-term financial goals are attainable especially with the assistance of a planner. With a clear idea of what you can do in terms of saving and investing money, a financial planner can provide you with the right approach and tools to enable you to reach your goals.
2 – Steady flow of incoming cash
If you are fortunate to be working full-time and relatively debt-free, you probably want to make your incoming cash work for you. If that is the case, you may want to see what a financial planner can do for you. Knowing that you have a steady amount of money to invest on a monthly basis, a planner can recommend the appropriate strategy to help your money grow.
3 – Extra cash in accounts
Have you opened many savings and chequing accounts over the years and want to do something with the cash? Why not consolidate the money by putting it in the hands of a financial planner; he/she will not only make the extra month grow, but you would have peace of mind knowing that the money is in one place.
4 – Not happy with your returns in a savings account
Although there is nothing wrong with trying to manage your savings on your own, you may have a limited amount of knowledge and time to make your money grow. Small returns at the end of the month should prompt you to start looking for professional help by either placing your savings in a high interest account or tax-free savings account. The planner is in the best position to invest the money based on your needs and how comfortable you are with risk in terms of investing for the years to come.
5 – Planning for retirement
Want to retire comfortably without being concerned about paying monthly expenses? You may want to work with a financial planner to establish a retirement plan. Taking into account that both government pension plans may not be sustainable going into the future, having access to a planner may allow you to have a registered retirement savings plan (RRSP) and/or a tax-free savings account (TFSA) that are carefully built might be the best alternative for you.
6 – Understanding personal financial tools
Do you know what income splitting is? Are blue chip mutual funds the best option for your portfolio? There are quite a few personal financial tools that are thrown around at tax filing time that may sound interesting and beneficial to you; however, they’re not clearly explained. Sitting down with a financial planner will permit you to have many personal financial tools that are thrown around at tax filing time that may sound interesting and beneficial to you; however, they’re not clearly explained. Sitting with a financial planner will permit you to have a tutorial on all the tools that have been discussed in the news and used by others in your age group and or financial situation.
7 – Preparing for your family future
Having a family is a costly process, and money needs to be managed properly. From paying the rent to paying for college or university, a parent must plan how money will be saved and invested in order for the expenses to be covered in the future. By working with a financial planner, you will have an individual that will put your money away in the right places knowing that it is for your family’s future.
In the next column, I will discuss some of the questions that you should ask when you first meet with a financial planner.