When do I need a financial advisor?

1 min readLast updated November 10, 2023by Rachel Carey

Could your financial situation be improved with some expert guidance? From soon-to-be retirees to expectant parents re-budgeting for the new shape of their life, explore the wide range of services an advisor could provide and dive into several scenarios in which financial advice could serve you well.

What is a financial advisor? 

A financial advisor is an experienced professional working in the finance industry. When you choose to hire an advisor, they become, in effect, your planning partner and money manager. 

At present, there are over 300,000 working financial advisors in the US. This number is predicted to increase continually over the next decade. 

The right advisor can help you accomplish your goals and turn your plans into realities, consistently educating you and improving your financial literacy as you work together. The scope of service provided by your advisor will differ depending on who you hire/what you need, but the assistance on offer can include: 

  • Budgeting advice 

  • College fund preparation and management  

  • Estate planning services 

  • Insurance/healthcare advice 

  • Investment advice 

  • Investment management 

  • Retirement planning services 

  • Savings advice  

  • Tax advice and planning 

Why do I need a financial advisor? 

Hiring a financial advisor can be a great decision. Yet, in 2022, only 35% of people in the US chose to utilize the skillset of a financial advisor.  

Access to a quality financial advisor equals access to expertise, potentially favorable product rates and offers, and guidance on everything from minimizing your tax burden to making complex financial decisions.  

Meanwhile, not hiring an advisor when needed can cause costly, tough-to-rectify mistakes. If you’re unsure whether you need financial advice or not, ask yourself these questions: 

  • Could I benefit from support and expert help when making financial decisions? 

  • Am I dealing with complex financial issues that I find confusing?  

  • Would I like to increase my wealth and expand my asset portfolio? 

  • Do I fully understand my taxes, or could an advisor save me some money here? 

When do I need a financial advisor? 

To thoroughly explore the many ways a financial advisor could be suitable for you, let’s look at some situations in which the need for expert guidance would arise and how an advisor would help: 

  1. Becoming a homeowner – if you hope to take your first step onto the property ladder, you’ll need to take things in two stages. Stage one is budgeting, planning and saving for the deposit and the costs of moving/buying. Stage two is creating a post-mortgage budget and accounting for other expenses, like homeowners insurance. The right financial advisor can guide you during both stages, confidently leading you to the moment when you’re ready to contact a mortgage advisor. 

  2. Getting retirement right – retirees and soon-to-be retirees hoping to get the best out of their golden years have much to consider on the financial side of things, from investment and savings management to long-term care and estate planning. A financial advisor can lead you through all that and more with ease, giving you peace of mind and helping you to maximize your retirement income and the amount your loved ones will be able to inherit after your passing.  

  3. Getting out of debt – debt management and consolidation is a massive priority for many Americans. Unfortunately, high interest rates and readily available credit products make it easy for a person to get into debt and much harder to get out of it. Financial advisors can use their expertise to help you create the most viable, effective payment plan for your situation. They can help you rebuild, whatever your situation.  

  4. Going through a divorce – the financial impact of a divorce is almost as notorious as the emotional impact, and financial decisions made during divorce proceedings can have enormous, long-lasting consequences. If you’re in the unfortunate process of separating from your spouse, receiving help from a supportive expert in the finance field is hugely advised. Not to be confused with help from a lawyer, a financial advisor’s support can give important early shape to your settlement and plans. 

  5. Growing your portfolio – if you’re interested in investing but have no experience with it, or you’ve made a few investments already but aren’t sure where to go next, a financial advisor can bring shape to your budding portfolio. You can communicate with your advisor about your preferences, interests, attitude to risk, etc., slowly building the perfect strategy for you. A strategy that keeps you 100% comfortable while maximizing your ability to protect and grow your finances.  

  6. Planning for a significant purchase or event – if you’re planning to do something out of the norm, like buying a new car, relocating to a different country or even having your first child, you’ll likely need to rearrange your finances and change how you budget. A financial advisor is poised to help with this shift and anything that comes with it. In the case of having a child, for instance, this might include helping you to set up a high-yield college savings fund for them to utilize in 18 years. 

  7. Protecting your life, health and wealth – according to Statista, around half of Americans have term life insurance policies, and around 92% have health insurance. If you want to take out one or the other, an advisor can help ensure you get the best deal, product, and coverage for your needs. An advisor can also talk you through other less common options that you might benefit from, including long-term care insurance, critical illness insurance and income protection insurance.  

  8. Managing your taxes – whether you’re an employee or a self-employed business owner, you must consider taxes no matter where you live in the US. You’ll need to account for federal and state-level income tax in most states. A financial advisor should be on the cards for those seeking to minimize their tax burden and make proper use of deductions. As well as potentially saving you money, hiring someone else to do your taxes offers incredible peace of mind. 

How to find a financial advisor  

If the content of this article has confirmed, in your eyes, that you’d benefit from a financial advisor, you’ll likely then wonder, “How do I find the right advisor for me?” Step one is determining which of the many services mentioned today you’ll require.  

Are you hoping for help with your taxes and financial planning? Or are you gearing up to retire and hoping to put yourself in the best place monetarily before you do? Once you know what you need from an advisor, you’ll be able to seek out well-reviewed professionals who provide those services and have experience in those areas.  

Whatever your situation, the perfect financial advisor is out there, waiting to greet you. Reach out to Unbiased today to connect with a financial advisor perfectly suited to meet your needs.  

Find your perfect financial professional today.     

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.