4 Instances You Need A Financial Planner As A Young Professional

24 September 2021
 Categories: , Blog

After settling in your dream job, what do you intend to do with your good salary? As a young professional, there are many demands ahead on your personal finances. You plan to buy a house, make long-term investments, and perhaps raise a family. Plowing ahead on your own can be disastrous in financial decision-making. A financial planner can be very helpful at different stages in a young adult's life, acting as an advisor, coach, or mentor in financial matters. These financial professionals can be useful in several instances:

When Income and Assets are Growing Rapidly 

Today, it is not uncommon for a young person to land a huge salary, especially when they have rare skills and expertise. Apart from employment, young people are growing assets rapidly in investments like cryptocurrency.

You will have bigger decisions to make as your disposable income and assets grow. Therefore, it is especially advisable to engage a financial advisor when your income or assets reach six figures. Good financial planning reduces the risks of bad financial decisions that can wipe this fortune away. 

After a Financial Windfall

Have you come into a substantial inheritance or hit a sports bet jackpot? Many financial decisions come with a financial windfall. Do you buy a flashier car or a bigger house? Is it time to quit your 9-to-5 job and retire at the coast? Do you make more investments? 

A financial planner is very useful in helping reach sensible and sometimes cautious financial decisions. They help you avoid impulsive and rash decisions that can wipe out your windfall. They will work with you to answer these questions and develop a plan to achieve your goals and dreams with your windfall.  

Planning for Children's Education and Health

Even if you don't have children but are planning to raise a family, you need to plan their education and healthcare. Education is a long-term expenditure, which gets more expensive as your children advance, and the inflation goes up.

A financial planner helps to choose the right education and health insurance packages to protect your children. Also, they can help you with estate planning to make sure your family is provided for if you die unexpectedly. 

Handling Tax Matters 

As your income grows and your investment portfolio expands, so will your tax liabilities. A financial planner works hand-in-hand with your accountant to ensure you pay as little tax as is legally possible. They safeguard your investments against tax attrition. They also protect you from costly tax blunders that may get you into legal problems.

Are you wondering how best to secure your finances in the long term? Talk to a financial advisor about your financial concerns and ideas.