When Do I Start Working with a Financial Advisor

The term “financial advisor” can be intimidating. It probably brings up a lot of questions.

Questions like: What do financial advisors do? Who needs to hire a financial advisor? How do I meet financial advisors and choose one to work with?

This article is going to walk you through answers to all of these questions.

Question #1: What do financial advisors do?

• Investment accounts
• Retirement accounts
• Stock market advice
• Types of investments that are the best fit for you, your family, and your goals
• College savings accounts
• Personal, business, and property insurance
• Estate planning
• Advice on taxes
• Advice on how to make gifts to nonprofit charities (and the tax benefits available to you for doing so)
• Savings strategies, and advice on where to put your savings
• Consolidating retirement plans or investments from your past employers
• Assisting you with setting your goals and regularly checking in and seeing the progress you’re making towards your goal
• Revising your strategies as changes occur to tax laws

Question #2: Who needs to hire a financial advisor?

The short answer to this question is—anyone who is interested in receiving money advice, and who has money they’d like help managing.

To go a bit deeper, let’s examine a couple of common misconceptions about who should work with a financial advisor.

There is a misconception that only very wealthy people need a financial advisor. No matter how much money you have, it deserves to be managed well. If there are questions you have about how to best manage your money, you can absolutely benefit from working with a financial advisor. There is no minimum income required to work with most financial advisors.

There is another misconception that people only need a financial advisor when they are getting ready to retire or plan their will. No matter your age, you can benefit from working with a financial advisor. In fact, time is an incredibly valuable resource when it comes to managing your finances. If you are doing any kind of investing, the power of compound interest over a span of many years allows you to see incredible returns on your original investment. While a financial advisor can absolutely help you plan for retirement and put together a will, the earlier you begin planning the more gains you could see.

Question #3: How do I meet financial advisors and choose one to work with?

There are an abundance of options available to you when it comes to selecting a financial advisor to work with. Here are a few key places to begin your search.

• Poll your network and get their recommendations. Ask friends, family, co-workers, staff who work at the bank you use, or other trusted individuals in your network if they work with a financial advisor.
• Check with your local chamber of commerce to see a list of financial advisors practicing in your area.
• Watch your local area for financial planning education sessions or open house events.
• Search for certified financial planners in your area by using national databases, like Let’s Make A Plan.

By now, hopefully you are feeling much less intimidated when you think of working with a financial advisor. Regardless of your financial situation, your age, or your goals—having a financial advisor in your corner can benefit you in many ways. It allows you to outsource the ongoing management of your finances, giving you more time, energy, and attention for other areas of your life. It also gives you peace of mind knowing you have a resource to ask “what would you recommend?” Knowing you don’t have to make big financial decisions alone, or keep up on all the tax laws yourself is a gift that will keep on giving.

The Knute Nelson Foundation raises funds to support Knute Nelson and the mission of enriching the lives of everyone we serve. Gifts to the Foundation support programs, services, facilities, our staff, and innovative and high-quality care for the older adults we serve. You can learn more about the Knute Nelson Foundation and ways to support us here or by calling the Foundation office at 320-421-0242.