Do you need a financial advisor?

Five questions to ask yourself


Navigating financial matters can be challenging. Your financial goals and priorities can shift over your lifetime.

Friends and family, even bloggers, can offer advice, but is it the experienced financial advice you need at this time and place in life? That’s when you might consider consulting with a professional.

Retaining a financial advisor provides you with the necessary experience to handle this critical area of your life.

Ask yourself the following five questions to help you determine the correct answer for you. 

What’s Your Financial Plan?  

We’ve all heard the adage that if you don’t have a plan, you’ll never reach your goals. However, if you don’t have a plan, no matter your stage of life, you probably want to rethink that. Your plan should be based on both your short and long-term goals. Have you assessed your current financial situation and what you’ll need to do financially to pay off debt, save for an education or retirement? Considering these needs and more is critical in developing and implementing a financial plan. A financial advisor is experienced in helping individuals create these plans and offers advice to assist you in crystallizing your thoughts on how to work toward your overall financial goals over your lifetime.   

How Complicated is Your Current Financial Situation? 

The complexity of your financial situation is essential to determining your level of necessary advice. For example, if you’re single and just starting your career, a simple financial plan might suffice. However, as you face life changes such as a marriage, divorce, etc., a financial advisor brings a wealth of knowledge and experience. They can help you strategize your priorities, goals, and investment decisions. Advisors can also help you put together a financial plan for the unexpected, such as an inheritance, the death of a family member, or a job loss.  

Have You Identified Your Short and Long-Term Goals? 

It’s critical to know your goals when putting together a financial plan. For example, your short-term goals might include saving for a beach vacation. Longer-term goals include accumulating capital to purchase a home, saving for a child’s education, and investing for your retirement. Do you have a goal of leaving a legacy to your children or a nonprofit? And, what are the best ways to do these simultaneously? A financial advisor can help you develop a plan, determine milestones, and make adjustments as your scenario changes.  

When and How Do You Want to Retire? 

I frequently say that you should think about what to retire to, in addition to what you plan to retire on. Determining your retirement plan could benefit from the help of a professional advisor. Understanding when you’d like to retire, as well as what you’d like to do in retirement, are important considerations when determining how much you’ll need in your retirement account to fund it. Your financial advisor will consider your income, savings, and investments while factoring in the effect of inflation on your funds to develop an investment plan to help you work toward your goals.  

How Much Risk Can You Tolerate? 

If you’re considering entering the world of investments, you need to determine your risk tolerance. If you’re younger, your risk tolerance will probably be higher than if you’re closer to retirement. What’s your level of knowledge or experience in investments? If it’s low, financial advisors can help you navigate the many options and investment strategies to fit your financial goals.  

If, after asking yourself the above five questions, you feel that you may need some professional advice, talk with friends and family, and do some online research to find a financial advisor with whom you feel comfortable. When you meet with them, they will want to learn about your goals and personal and financial information so they can put together a personalized financial plan for you. A professional advisor helps take the “guesswork” out of your financial planning so that you can focus on your life’s priorities and goals.  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

Steve Booren Photo Steve Booren founded Prosperion Financial Advisors in 1996. Since then, he has grown the practice to one of the top 20 largest financial advisory firms in the Denver area. Steve began his investment career in 1978 with EF Hutton. After nearly 20 years with the investment company, he left the corporate world to launch his own financial advisory firm. Backed by LPL Financial, one of the nation’s leading independent broker-dealers, Steve pursued his mission to provide clients with independent, objective investment advice. Utilizing his 40+ years of investment experience, Steve authored the book, Intelligent Investing: Your Guide to a Growing Retirement Income, in 2019, and was named as a 2021 top advisor by both Forbes and Baron’s.

Categories: Business Insights, Finance