Over the years, we’ve talked a lot about the genuine value that financial planning can add. Indeed, just this month we’ve looked at a brand-new report which reveals that taking financial advice can have benefits for your emotional wellbeing, making you feel more confident and in control of your money.
We’ve also shared feedback from our clients about just how BlueSKY add value, and why clients choose to work with us.
This is all very well, but when, specifically, will you know that it’s time to speak to a financial planner? Here are seven occasions when you’ll know the time is right to pick up the phone and arrange a chat.
1. When you have a major life event
Major events are a great opportunity to take advice. Whether you’re getting married, having a baby, or changing a job, a financial planner can work with you to ensure your finances are in order, your family are protected, and that you’re making the most of your money.
A financial planner can also help you if you lose a loved one. If you have inherited money and you’re not sure what to do, or you just need help in getting to grips with your affairs, they can provide peace of mind and reassurance at a time when you really need it.
2. When you no longer have time to deal with your finances
If you run your own business, you hold a senior position, or your work is emotionally taxing, the last thing you probably want to be doing when you get home is worrying about your pension or your investments.
If you want to spend more time with your family, or doing the things you love, it can make sense to reach out to a financial planner. They can do lots of the heavy lifting so you can get on with doing the things you enjoy.
3. When you’re worried about your spouse or partner
Research from M&S Bank has found that just 17% of people in a relationship regularly talk about finances with their partner. More than one in 10 are apprehensive about discussing debts, do not share how much they earn, or do not know details of their partner’s wages.
In many relationships, one party ‘deals’ with the household finances and takes most of the responsibility for the money. If that person is you, and you are worried that your spouse would be unprepared to deal with your financial affairs in your absence, it’s a good idea to find a planner.
4. When the numbers become serious
If you’re a young person with £1,000 in a Stocks and Shares ISA, it’s likely that you have plenty of time to recover from stock market volatility and bad investment decisions.
If you’re in your 50s, with a significant pension fund, then mistakes can be much more costly. You may face tax issues – everything from Capital Gains to Inheritance Tax – and you may have less time to replenish your savings if something happens.
If the numbers have suddenly become serious, working with a financial planner can help you to make the right decisions.
5. When it’s affecting your emotions (or your emotions are affecting your decisions)
Your financial health and mental health are inextricably linked. Worrying about money can give you sleepless nights and damage your mental health. Conversely, if you are already struggling with your mental health, you may be more prone to poor financial decisions.
We’ve previously looked at how your emotions can sometimes result in bad financial decisions that affect your long-term security. So, if your finances are keeping you awake at night, it might be time to seek professional help.
6. When you need to be specific about your goals
If you want to send your child to a private school in ten years, retire when you are 60, or buy a second home, a financial planner will be able to help you to determine whether or not this is possible.
Financial planners often use cash flow modelling software to forecast your wealth, considering reasonable growth rates and taxes. By modelling your financial future, they can give you the confidence to make decisions, safe in the knowledge that you can ‘afford’ it.
7. When you make a mistake
If you’ve ever tried and failed at DIY, you’ll appreciate that sometimes you’re better hiring an expert. As the great American firefighter, Red Adair once said: “If you think hiring a professional is expensive, wait until you hire an amateur.”
If you panicked early on in 2020, sold your portfolio and placed all your money in cash, then that’s a good sign that you need to work with a financial planner. While we can all learn from mistakes, perhaps the best lesson is to get good advice.
Get in touch
If you’re in any of these situations, and you’d benefit from speaking to an expert, we can help. Please email email@example.com or call us on 01189 876655.