It’s easy for many to put off financial planning, but when we do, it makes it that much harder to know when it’s finally time to control our investments and begin retirement planning. Here, we’ll discuss three common excuses that might explain why people postpone financial planning.
3 Reasons Why People Put Off Financial Planning
Reason 1: “I don’t have anything to invest.”
Younger generations have higher debt, particularly from student loans, so it’s not surprising they have less to invest. But financial advisors help with more than just investing; they explain the confusing financial jargon you hear, as well as offer advice and help you manage a household budget and save for retirement. “Financial advisor” can mean anything from a financial coach to a tax professional, and each can help you with these different areas.
Reason 2: “It’s too expensive.”
Many professional advisors help mitigate cost by offering complimentary consultations or hourly rates. You may even benefit from a payment plan that your financial firm offers. Let’s also not forget that managing your money now, and making important investment decisions based on your age and risk reward, can lead to more money in the future.
Reason 3: “I’m too busy.”
This reason should actually prompt you to meet with a financial advisor. Knowing where you’re headed with your investments is a great way to feel in control. Plus, advisors exist for people like you who have met a certain inflection point, where you have more money and assets but less time and less knowledge on where to go next.
Signs You’re Ready for Financial Planning
So, when should you hire a financial advisor and is there a better time to plan for your future? Here are some indications you should consider hiring a financial advisor:
- You keep thinking, I’ll just do it myself, but haven’t yet. Will you really do it next week? If you’re a caretaker, business owner, or employee working 40 plus hours, it’s easy for this to fall to the bottom of your priority list.
Like many Americans, you can Google specific questions to find information about managing your own money. You’ll learn the basics and some terminology, but if you’re searching specific questions, important information that may affect a future investment may not come up in results. Running everything past an advisor who understands what’s at stake and how this will impact your future goals is the best way to ensure you’re not overlooking a tiny blind spot that could cost you big later.
- You know you need a change but you are still unsure what that entails.
- You’re more reactive vs. proactive. What makes financial advisors worth your investment is their ability to proactively identify risks and opportunities for you. They keep track of changes in the market and tax laws that could affect your investments, and they also help you adjust your strategies when you have upcoming life changes.
- Your finances are disorganized (e.g., you have old 401(k)s, IRAs, or brokerage accounts in multiple accounts). If you’re afraid of what you’ll find, that’s a good reason to have someone dig into it! Not only will you get organized, but you’ll be able to work on a new, efficient strategy moving forward.
The Time to Start Financial Planning is Now
Does the thought of financial planning stress you out? It might be time to consider hiring a financial advisor. If you’re ready to take control of your future, Focus Financial can help you prepare now and enjoy the benefits later!
To get started, find an advisor near you!
