2. You Are Not Sure You Save Enough for Retirement
Without knowing how much you need to save, it is hard to create a plan to set aside enough for a comfortable retirement. Over 50% of couples who responded to the Fidelity study admitted that they don’t know how much they need to save for retirement to sustain their current lifestyle. Unfortunately, most people are not saving nearly enough to be able to retire when they would like to. This is especially a problem for those nearing retirement. Hardy said he has seen this personally.
The biggest concern of older adults who come to him for help is whether they will have enough assets to live a comfortable retirement, and, if not, what they need to do to get there. A planner can help you figure this out.
3. You Do Not Know How To Build an Investment Portfolio
Very few people feel confident enough to put together their own portfolio that takes into account risk tolerance, costs, asset allocation and time frame. According to the Fidelity study, 40% of couples disagree on how much risk they are comfortable taking on in their investments, which can greatly affect their potential earnings. The investments you choose can affect how much money you’ll have in retirement.
A financial planner can help you create an investment portfolio that will help you reach your goals. A good advisor won’t use a cookie-cutter approach, either. The portfolio will be based on your risk tolerance, age and other factors, such as your tax bracket.
4. You Do Not Know How To Create a Long-Term Plan
Creating a financial plan can be difficult because most people are uncomfortable examining their own financial situation. Sometimes it is easier and less stressful for someone else to create a plan and hold us accountable than doing it on our own.
If you’re confused about how to set financial goals and what you need to do to achieve them, a financial planner can help. A financial planner will help you look holistically at all of your assets and help you develop a plan that is right for you. Advisors create a plan based not only on your investments such as stocks and bonds, but also on assets such as real estate, life insurance and even your own human capital, or earning power.
In fact, the Fidelity study found that couples who work with a financial advisor are up to 19% less concerned about common financial stressors, such as saving and paying off debt, than those who do not work with a professional.
5. You Are Afraid You Will Lose All Your Money in the Stock Market
This sort of fear can lead people to avoid investing altogether, financial experts say. Or it can cause people to jump in and out of the market, which can hurt their returns over time.
If recent events in the market have changed your feelings on how you should invest assets, you need a financial planner, Johnson said. A planner can help ease your fears and create a diversified portfolio that will allow you to ride out the ups and downs of the market.