Do you struggle with feelings of financial insecurity? You’re not alone. Just 64% of women say they feel financially secure, according to a survey from Allianz Life of women with an annual household income of $30,000 or more.
Given that, though, it’s surprising that only 33% of women currently have a financial professional they work with. But of those who do use a financial professional, the consensus is that doing so helps them feel better prepared for their financial future. And 73% wish they’d started working with a professional sooner.
Here are a few reasons why it can be worth hiring someone to help you work toward your financial objectives.
1. You can make the most of your income — no matter what it is
Saving for big milestones like buying a home, putting a child through college, or retirement is going to look different for someone making $50,000 a year compared to $150,000. But these goals are achievable regardless of whether you’re a higher earner or a more moderate one.
A financial professional can help you map out your goals and figure out how to meet them based on the income you have available to you. They can also help you optimize tax-advantaged accounts to eke out the most savings.
2. You get the benefit of someone who’s not emotionally invested
When you’ve been living in the same rental with an absentee landlord for years and you want nothing more than to buy a home of your own with more space and better amenities, you may be inclined to push other financial goals aside to make that happen — even if that’s not the most financially prudent path.
The good thing about working with a financial professional is that they’re not approaching these decisions from an emotional standpoint like you might be (and understandably so). Rather, they can look at the numbers and be more objective while delivering spot-on advice.
For example, in this situation, you may be inclined to put IRA contributions on the back burner to focus on saving for a home. This might seem like the best thing to do in your mind. But a financial professional may be able to explain why it’s not your best course of action (namely, because it might mean losing out on tax breaks and struggling financially later in life).
3. You can get peace of mind
Maybe the idea of never being able to retire is making you lose sleep at night. Maybe you’re worried your child is going to be saddled with educational debt the same way you were.
These are the kind of thoughts that can wreak havoc on your mental health — and might even impact your performance at work.
The upside of working with a professional is they can set you up with a plan that not only works, but provides reassurance. That could work wonders for your general outlook and make you a happier person.
How to find the right financial professional
So you’ve decided you deserve help with managing your money. Great! Now you just need to find the right person for the job.
Your best bet is to ask friends, colleagues, and neighbors if they have someone they can recommend as a starting point. But get several recommendations and consider meeting with a few different people to get a sense of how they work.
Before you make your final decision, you should also make a point to:
- Find out if the professional you want to use is a fiduciary, which means they’re required to put your best financial interests first at all times.
- Check your financial professional’s credentials.
- Make sure you understand and are comfortable with their fee structure (you may be charged an hourly rate, or you may be charged a percentage of the assets they manage for you).
- Make sure you’re happy with their communication style (some professionals will want to meet in person regularly, while others might do a call once or twice a year)
All told, working with a professional could be one of the best things you do for your finances. So it pays to at least consider giving one a chance.
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