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When To See A Financial Advisor? Key Signs and Timing

The common misconception is that you shouldn’t engage a financial planner until you’ve got a significant amount of money to invest – not true.

There is a belief that you need to be incredibly wealthy before considering seeking out the guidance of a financial advisor. However, this couldn’t be further from the truth. In this Montara Wealth Article, we will break down exactly when it may be time to seek out the guidance of a financial professional. 

The article will cover the following:

• Why You Might Need A Financial Advisor 
• Top Situations That Call For Financial Advice
• How To Know The Right Time To Consult A Financial Advisor 
• Benefits Of Seeing A Financial Advisor Early 
• What To Expect During Your First Meeting With A Financial Advisor 
• Choosing The Right Financial Advisor For You

Strategic financial planning is all about discovering and developing financial direction, something that can happen from a very young age.

At Montara Wealth, we work with clients who are just beginning their financial journey, through to clients who are arranging for the latter years of their financial life.

Why You Might Need A Financial Advisor?

There is no one-size-fits-all answer to “When should you get a financial advisor?” It all depends on your personal financial situation, your future outlook, and what your goals are.

Top Situations That Call For A Financial Advisor 

Below are several situations/circumstances where it would be beneficial to start considering the guidance of a financial advisor. 

• You Are Facing a Major Life Change: Whether it’s career, family, or relationship-related, a major life event often brings with it financial considerations that will need to be made. A financial advisor can help you manage a rise in income, navigate the murky financial future of a divorce, or help you set up a financial plan for your children’s future. A strong financial advisor can assess how these situations might affect your finances and suggest any changes that need to be made to stay on track.

• Significant Financial Decisions: When navigating a big financial decision, whether that be buying a home or starting a business, a financial advisor can offer strong guidance. Do you need help navigating mortgage options to ensure your purchase aligns with your goals? Or if you’re starting your dream business, a financial planner can help you manage cash flow, plan for taxes, and develop strategies for growth.

• Long-Term Financial Goals: If you are struggling to plan for retirement or manage your superannuation, a financial advisor can help you to set clear goals and strategies moving forward. If you have always wanted to invest but didn’t know where to start, then an advisor can help you build a portfolio.

• Complex Circumstances: If your personal financial circumstances are complex, whether due to multiple properties or investments, a financial advisor can help you to maximise tax efficiency.

• Financial Stresses: If you are feeling overwhelmed by debt or feel unsure about your financial future, then an advisor can help give you informed advice to give you peace of mind and strategies for going forward.

How To Know The Right Time To Consult A Financial Advisor?

Some of the most common situations that may show it’s time to consult a financial advisor include: 

• Starting a new job or career 
• Getting married or entering into a partnership
• Buying or upgrading a home
• Starting a business 
• Having a child
• Planning for retirement 
• Investing
• Receiving a large inheritance 
• Complex tax planning
• Managing debt
• Creating an estate plan
• Financial anxiety 
• Major life changes
• Planning for college or education

What Advice Can A Financial Advisor Give You?

• Understanding how to save money and plan for the future 
• Changing your career direction 
• Getting onto the property ladder with a home or investment property 
• Starting your family 
• Upgrading your family home, or buying an investment property 
• Affording private schooling for your children 
• Sustaining a suitable income in retirement 
• Business cash flow management 
• Looking into philanthropy and charitable giving

Benefits of Seeing a Financial Advisor Early

Financial advice early on in your life can be an especially powerful tool. There is so much potential at a younger age, especially when it comes to finances, and seeking guidance early on in your career can set you up for success later on in life.

Here is exactly why seeking out financial services early on can be a strong move to make. 

• Plan Your Goals: Starting early allows you to set up the foundation of strong financial habits, whether that be budgeting, saving, or investing wisely. An advisor can create a tailored plan to match your goals and ensure you aren’t just earning money, but also managing it effectively. 

• Growth Opportunities: The earlier you take the plunge into investing or contributing to your superannuation, the more time you give your money to grow through compounding. Financial advisors are adept at selecting the right investment mix and timely strategies to help you get the most out of your money.

• Tax Navigation: A qualified financial advisor can help you to structure your income, investment, and super and also help identify all the deductions that you may have initially thought you didn’t qualify for. This can not only help you save money over time, but also legally get more money back into your account.

• Avoid Mistakes: Seeking advice early can save you a lot of headaches in the long run. We know that financial decisions can be complex, and gaining knowledge from a professional can help you avoid many pitfalls.

• Wise Investing: A financial advisor can help you early on to decide how much risk you can and should take on. For some people, they may want to pursue a higher-risk portfolio, while others may want as much peace of mind as possible. Starting at a younger age gives you much more wiggle room to explore your options. 

• Relationship Building: It’s a great idea to build a relationship with your financial advisor early on in your life. As your life changes, they will be there to guide you through these financial transitions with advice expertly tailored to you.

• A Plan In Place: One of the biggest benefits to seeking out advice early on is knowing that your finances are in order and that there is a plan for your future. This allows you to focus on the present, rather than stressing about the future.

• Execution and accountability: A good financial advisor won’t just help you design a plan, they’ll actually help you to put it in place. Just as importantly, as your life and objectives change over time, they’ll be with you to ensure the plan remains relevant and you’re maximising your overall financial strategy to ensure it meets your current financial objectives.

“People who wait for the right moment end up waiting forever”. The best time to seek financial advice is now.

What Can You Expect During Your First Meeting with a Financial Advisor?

You have nothing to fear in your first meeting with a financial advisor. It is all about getting to know one another and laying the foundation for your financial future. 

Here are some of the things you can expect to be covered in your first meeting. 

• Getting to Know You: A financial advisor will start by introducing themselves and outlining their field of expertise before delving deep into your unique personal and financial situation.

• Breakdown Finances: You expect to dive deep into your current finances in the first session. The advisor will look into your income sources, expenses, assets, liabilities and any insurance you may have. All of these aspects help them to gain a clear picture of where you are financially.

• Discussing Goals: “So what is it you’re working towards?” is a question you can expect to be asked early on. This can be a short-term goal, such as buying a house or paying off debt, or a longer-term goal, like retirement or your children’s education. Whatever your goals are, a financial advisor will help you prioritise these goals and create a strategy going forward. 

• Building Trust: The first meeting is about getting comfortable with one another and ensuring there is a good rapport between both parties. Here you’ll establish how often you’ll see one another, how they will communicate with you and what’s required from your end.

• Planning Next Steps: At the conclusion of your first meeting, your financial advisor will outline the next steps. What does this look like? Well, it could be beginning to formulate your formal financial plan, scheduling follow-up meetings, or gathering any additional documents to complete your financial picture.

Choosing The Right Financial Advisor for You

Choosing the right financial advisor can be a valuable resource for you in every avenue of your personal financial journey. Whether it’s guidance you’re seeking or support in managing a complicated portfolio, an advisor can help you navigate the murky waters.

You don’t need to already be set up for life to see the help of a financial advisor. Instead, it’s about enhancing your understanding of your finances and helping you make informed decisions about your immediate and long-term future. 

At Montara Wealth, our team of experts are passionate about getting to know their clients, their key objectives, and helping them create a positive outlook for their future. 

If you think you are ready to take the next step in building your long-term wealth, then reach out to us today at Montara Wealth to get started.

Speak to our expert advisers today for tailored guidance.

Contact us today or call us on 02 8330 3733. We look forward to working with you.