By Vincent Birardi, CFP®, AIF®, Senior Wealth Advisor
Can you manage your personal finances? Only you can answer this question, and only after serious consideration. Likely the more pertinent question is should you manage your own money? That’s the focus of this short piece, which poses three key questions to ask yourself to help you decide if partnering with a financial advisor is appropriate for you.
I’ll start by briefly defining what is entailed in managing your money – including your own investments.
When should I consider hiring a financial advisor?
1. Do you have the time, knowledge, and interest to manage your finances effectively?
- Time: Do you have adequate time to dedicate to researching investments, monitoring your portfolio, and adjusting your financial plan as needed?
- Knowledge: Do you possess the financial expertise to make informed decisions about investments, retirement planning, tax strategies, and other financial matters?
- Interest: Are you genuinely interested in learning about and actively managing your finances, or do you find it tedious and overwhelming?
If you lack the time, knowledge, and/or interest to manage your finances effectively, hiring a financial advisor could be a beneficial investment of your time and financial resources.
2. Are you facing complex financial circumstances or significant life transitions?
- Complex Finances: Do you have multiple investment accounts, significant debt, a business, or complex estate planning needs?
- Life Transitions: Are you going through major life events such as marriage, divorce, the birth of a child, a career change, or retirement? All of these can significantly impact your finances.
Navigating complex situations or major life transitions often requires specialized financial expertise, making a financial advisor a beneficial resource.
3. Do you need help with specific financial goals or planning areas?
- Specific Goals: Do you have well-defined financial goals, such as saving for retirement, purchasing a home, funding your children’s education, or achieving financial independence?
- Planning Areas: Are there specific aspects of financial planning where you need guidance, such as retirement planning, goal-directed investment management, tax optimization, or estate planning?
If you’re struggling to define or work toward your financial goals, or need help in specific planning areas, a financial advisor can provide valuable support and expertise.
Assessing If a Financial Advisor Is Right for You
Considering the questions I’ve posed above can help you gain a clearer understanding of whether hiring a financial advisor could be beneficial for your needs and life circumstances. Here at HH, we follow a stringent process to help us understand your goals, opportunities and risk exposures to offer recommended solutions tailored specifically for you.
Learn more about our approach.
Disclosure:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant. All opinions or views reflect the judgment of the author as of the publication date and are subject to change without notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.
