You are in charge of the money that you make and the money that you spend. However, just like some people aren’t good at singing or math, some people are terrible when it comes to personal financial management. That’s why, many times, people will turn to the assistance of financial advisors to help them manage their money. Not sure if a financial planner could help you out? Here are some reasons why you might want to consider hiring one.

  • You still receive a large tax refund.
    • While many people look forward to the end-of-the-fiscal-year payout that comes when it’s time for taxes to be filed, if you receive a lot of money in that refund check year after year, it’s likely because you’re filing or filling something out incorrectly. Although you do get the money back each year, you’re still losing out on potential capital gains from investing the money. Since the US government only returns the money that you overpaid without any interest tacked on, each year you’re losing out on the potential interest that you could earn had you invested the money yourself.
  • You’re getting close to retirement and you’re worried about your savings.
    • Retirement seems like the far distant future in your twenties, thirties, and even forties. But by the time you hit your fifties that faraway beacon suddenly looks a lot closer as you round out your last decade or so of work. This is when many people start to panic that they haven’t done enough or saved enough for them to be able to retire comfortably. This is when people often choose to enlist the help of a CFP (certified financial planner) to help them build a more solid plan moving forward.

Financial planners are who you turn to when you need expert advice and guidance on matters of money. If you’re building a budget for the first time or looking to start tracking your monthly spending habits, you likely don’t need to hire someone professional to assist you, especially when there is so much free and affordable personal financial management software and tools at your disposal.

However, keep in consideration that CFPs can offer you something that personal finance software will never be able to: CFPs can help you remove the emotions from money management and look at your finances logically, giving objective insight.