All You Need to Know Before Hiring a Financial Planner

No matter you are running a small start-up, or you are the owner of a large and stable organization, managing your money is the most challenging task you’ll ever come across. Grappling with complicated issues like investing strategies, paying taxes, and retirement planning do not come easy at all. You might think you can manage all the spheres of your business on your own, but when there is a whole lot on your plate, handling everything simultaneously can become chaotic. That is when the epitome of management, “Financial planners” come into action. Tax advisor services are other sources of financial management. But how and when do you need a financial advisor? That is the real question that arises. If you are sailing in the same boat as millions of other entrepreneurs, then this blog is definitely for you. This brings you all the details on why do you need a financial advisor and how do you choose the best-suited one for you.

What does a Financial Advisor do?

As self-explanatory as the term is, a financial advisor is someone you appoint to gain financial advice. He has the expertise to help you make the most of your initial capital investment. It helps you in creating a personalized plan, which further enables you to manage your budget. Achieving your financial goals becomes much more comfortable with a financial advisor.

With the advancement in the financial field, the advisors have begun to offer low-consultations. Even without hiring them full-time, you can make the most of their bits of advice. They can help you to proceed in the right direction. There might be times when you feel that you don’t have sufficient money to afford a financial advisor. Those times are perfect for availing consultations. You can even attempt managing your finances on your own if you feel there is not much on your plate right now.

When should you hire a Financial Advisor?

You know it is time to hire a financial advisor when you are unable to build wealth on your own. When the liabilities become more than the assets, it is high time you hired tax advisory services. Below are sure signs that indicate the need for appointing a financial planner.

You are too young and not sure where to start:

It is better to adopt a sound financial plan in the early stages of your life than to wait all your life for the perfect plan. This would allow you to live a wholesome and satisfying after-retirement life. Anyways, investing 30 percent of your income when you are young and want to retire in 40 years is much convenient than investing 60 percent when you are older and want to retire in 15 years. You, as a young adult, should be very careful about hiring the right planner, especially when you don’t have much money to your name.

You just experienced a significant life-changing event:

Be it graduation or marriage or having kids, any major life event calls for a significant financial impact. Having a child would need you saving for their future. In case you are getting married, you would be expected to merge your finances with your partner. Personalized help with debt management is sure to benefit you even when you have just graduated from college and landed your first job.

Managing your finances help you attain stability to a great extent. And seeking professional help is just the right way to do it.

Time is money, but you don’t have any:

One of the most compelling factors to hire a financial advisor is not having enough time. Critically examining your economic life and putting a plan in place is imperative if you want your business to flourish manifold. Sometimes you need to get it through your head that no matter how smart you are, financial planning is not your forte. That is when you need to seek professional help. The financial advisors can help you to create a road-map to keep your financial life on track.

  • Financial issues are taking a toll on your inner peace and health:

If the worry of cash flow, saving for a goal, a change to your family situation or covering loan payments is making you stay awake each night, then maybe it is time to reach out to a professional financial planner. You can get on the fastest track with his help. Look out for the best one and see for yourselves the positive outcomes in your finances.

  • You have millions of bucks in your account, and you need a comprehensive plan to manage it:

A conventional planner can help you manage and grow your wealth. If you have quite a lot of money saved with you, it becomes rather difficult for you to achieve it. A well-sorted comprehensive plan laid-down by a professional financial advisor can help you to a great extent.

Innovative Steps of Financial Planning:

The most professional financial planners all around the world follow a simple but effective rule of financial management. The rule of EGADIM which figuratively stands for:

  • Establish the goal
  • Gather data
  • Analyze data
  • Develop the plan
  • Implement the plan
  • Monitor the plan

Creating and implementing financial plans for their clients comes easy to the managers with this rule. Without any further ado, let us discuss the rule of EGADIM in detail.

Step 1: Establish the goal relationship:

The first step requires the financial manager to explain the detailed planning process to a prospective client.  For unravelling the truths of business, the advisor is allowed to ask open-ended questions regarding immediate financial goals and market risks.

The main objective of establishing the goal is to accomplish the purpose of planning. Forming the foundation comes easy when you have it all sorted. There are millions of people out there who keep on investing with no specific goal in mind. This tends to haunt them down in cases of financial distress. Even when they have goals and a particular destination, they are a result of conventional wisdom rather than being their own. You must know yourselves and your business thoroughly if you wish to attain financial stability.

Step 2: Gather the relevant data:

Recommending appropriate strategies and financial products to reach your goals becomes possible with gathering information. Asking the questions such as, “what is the time horizon for accomplishing your goals?’  “What is your risk tolerance?’ “Where do you see yourself in 10 years or so” would help you get a better idea of your client’s motives.

Let us explain this with a great instance. Suppose you are gathering data for retirement planning, you need to ask your client about their annual income, years until retirement, and plans after retirement or your savings till date. Writing all this information down would help you in visualizing all the necessary data required to make specific investment decisions.

Step 3: Analyze the data:

Tax advisory services and other financial managers all around the world are expected to analyze the relevant information thoroughly. Some pretty useful underlying assumptions can be figured out if you accurately analyze the data gathered.  The best way to do that is by using a financial calculator. If you don’t have one, online calculators can help you to a great extent. This examination would help you figure out if your retirement goals are achievable or not.

Step 4: Develop the plan:

After you have analyzed the gathered data, the next step is to develop an appropriate financial plan. This step requires you to devise alternative solutions that are achievable for your clients. While remaining within your risk tolerance and capabilities, try evolving, and developing your plans.

Step 5: Implement the plan:

Putting the plan to work is easier said than done. There are millions of people who find the implementation of the most challenging process. Implementing comes with discipline, desire, and perseverance. There might be times when you begin procrastinating saving money per month. That is when financial advisors come into action. They would make you realize that just getting started is the most crucial aspect of financial saving.

Saving a tremendous amount of money, in the beginning, is not at all a good idea. You might not be able to come up to the expectations. Therefore it is better to make your financial strategies achievable. Investing just one fund or saving a few dollars per week can prove to be useful. Consistency is what matters.

Step 6: Monitor the plan:

Just implementation of the plan is not enough; you have to make sure that it is adequately monitored to success. Leaving it unattended would do you no good except worsening the situation. It is recommended you tweak the plan from time to time rather than leaving it as a piece of history. The major events such as childbirth, marriage, and graduation require a new perspective on finance. Financial planning is essential, especially when factors like interest rates, inflation rates, and stock market fluctuations keep on prevailing.


Hiring a financial advisor can be pretty costly, but it is worthwhile.  Managing your finances can be tedious, and it is better you rely upon professional tax advisory services. The financial advisor you hire can be a part of a large office or even work for a bank. What is essential is the fact that they help you with everything regarding financial management. Before rushing into anything, you need to be thorough about the background, fees, services, and experience of your advisor.