Let’s say life has been good so far – a solid education, marrying your college sweetheart, a satisfying and high-paying job that even leaves you time to pursue hobbies. To top it all, you just made the down payment on your dream home. Things seem to be falling perfectly into place, so you decide it’s time to take the next big step and have a baby too!
Then all of a sudden, there’s an unexpected crash in the stock market, and the organization you work for crumbles so bad that you lose your job. This leaves you with a host of tough decisions to make, which you just can’t seem to get your head around, particularly at a time like this.
Before something like this happens, you need a wealth management advisor, someone to help get your finances in order, both for today and the years to come.
When Should You Hire a Wealth Management Advisor?
There are plenty of times that life throws you a curve ball (especially when it comes to finances), and even when you believe you have everything under control, there’s nothing wrong with taking necessary precautions. Wealth management services offer relief and help you deal with circumstances for which you are unprepared, both good and bad.
Here are seven occasions where you should hire a personal wealth management advisor:
1. Showering Wealth
Coming into money can make your head spin, but with all the excitement, there’s also the chance of inherited risk. Depending on your personality you may choose to splurge, and in doing so develop an unhealthy spending habit, with negative effects in the long run. On the other hand, you may want to save for something more important but might still feel like you aren’t making the most of your windfall.
Signing up for private wealth management will give you the insight you need, not just to better invest your money but also help it grow in the long run.
2. Uncontrollable Debt
Sometimes things can swirl out of control, leaving you with surmounting debt that seems impossible to manage. At other times, unforeseen situations (like being fired from work or sudden illness, accident or disability) could leave you with a stack of bills to pay and not enough money to cover them. Trying times like these call for serious measures.
As long as you have a plan and stick to it, you will be debt-free sooner or later, but that can be very difficult to do on your own. Start by establishing a budget that allows you to make only the necessary expenditure, with the help of a financial advisor, or turn to a non-profit agency for help with managing debt.
3. Career Switch
People give in to change when something on the other end of the spectrum seems more promising. Considering a change in your career could mean higher pay or even a giant leap into a start-up or business of your own. Of course, the chances of failure are as high as the chances of success, unless you plan it right!
Whether you’re considering switching careers or starting your own venture, it helps to have a financial advisor guiding you through the various possibilities that could unfold, for your short-term requirements and long-term goals alike.
4. Family Conflicts (Death of an Important Person)
When a family member passes on, especially when it’s the head of the family, there’s so much going on that sometimes it even becomes tough to mourn. Often, important decisions need to be made regarding the will, trust fund or inheritance, and even the possibility of estate division.
Family office wealth management covers everything you need and can prove valuable at this sensitive time when your family needs a stable guiding hand to take charge of financial matters.
5. Passing on the Family Business
Passing on a family business is a very emotional phase since you are passing on your legacy. In such a situation, questions about how it will be handled, whether it would be better to let go completely or maintain a stake, etc., are bound to arise.
Family office services entail the preparation of a family constitution, family mission statement, succession planning, and other matters. A family office advisor can also help in passing on the family business to the next generation (or an outside buyer) in a well-organized and proficient manner.
6. Stock Market Drop
Investing in the stock market can leave you super-rich, but it could even bleed you dry since it’s impossible to tell what stock will go up and what will drop in the future. Even with tips on insider trading, your luck could turn disastrous anytime, so it’s best to let the experts gamble for you. Having a financial planner on board to help you manage your stocks is a great way to stay disciplined and avoid getting burnt in the stock market ‘gamble’.
7. Family Expansion
Choosing to grow your family is one of the most important and life-changing decisions you will ever make. Of course, you need to plan your investments so you can provide for your child’s needs such as education and scholarship planning, until the time when they’re financially independent. A financial advisor can help you systematically plan ahead for the future, so you and your family can live a long, happy and comfortable life.
So, now that it is clear how important it is to hire a financial advisor in certain specific situations, would it not be wise to ensure that you have a good financial advisor on your side just in case you run into such a situation. In picking the best fit for you, make sure you hire someone that understands you and your needs and is a good personality fit as well. Do your research and pick a well known and experience company so your chances of an experienced financial advisor increases. You can also ask around for references if you know someone who has hired an advisor before.
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