Not everyone needs a financial planner, but almost everyone could benefit from working with one. In this blog post, I am going to share with you 5 reasons why hiring a financial planner as a millennial could be helpful for you.
1. Financial Planners Create Forced Accountability
One of life’s most useful tools is accountability. Think of why you have a workout partner? By having one, it ensures you go to the gym, workout harder, and get all the things done that need to get done. This is exactly how working with a financial planner works.
We all have hectic schedules and never-ending to-do lists. It’s only realistic to expect action items to be pushed down the list several times before being completed, if ever. Having a financial planner ensures that all of the key tasks get completed. This accountability is massive. It’s great to know what to do, but that is only half the battle.
2. Financial Planners Can Help Alleviate Your Stress Around Finances
48% of U.S. adults experience “high” or “moderate” levels of anxiety around their level of savings. Much of this stress comes from people just winging it. They have no clue if they are saving enough, too much, in the wrong accounts, etc. Hiring a financial planner takes the guesswork out of saving. Sure, no one has any idea what the future holds, what the stock market will do in 5 years, etc. But… they can help you understand what you need to be doing to give yourself the highest probability of success in the future. Paying someone to help alleviate stress is worth every dollar.
3. Financial Planners Are Your Unbiased Sounding Board
In every area of your life, having a sounding board is extremely important. It’s a role your parents played for you growing up and it’s the role your financial planner can have with your money. Should you rent or buy? Should you take the new job in a different location or not? Should you hold onto your concentrated equity position or not? Should you sell as a new pandemic hits? Should you combine your finances when you are married or not? These are all really big decisions that become emotional. And we all know how hard it is to make sound decisions when emotions are high. Your financial planner can help take the emotion out of the decision making process and lay out the facts for you so you can feel empowered to make the best choice for your life!
4. Financial Planners Free Up Your Time
Your personal finances are a 24/7 job. You are always spending, saving, investing, paying off debt, planning for the future, etc. all while the market, taxes, legislation, and your life changes. Financial planners stay up to date on all this stuff while also taking everyday tasks off your plate. This allows you to spend more time on the things you care about. I always compare this to business owners. Business owners hire assistants, marketers, sales people, etc. to take tasks off their plate so they can spend their time on things that are most important to them. The same is true with hiring a financial planner for your family.
5. Financial Planners Are The Second Set Of Eyes On Your Finances To Help Overcome Biases and Blind Spots
There was a discussion on twitter this week around whether it would be seen as good or bad if your financial planner had a financial planner for themselves. Many said that it would be bad and prove they don’t know their stuff, but I completely disagree. Doctors have other doctors see them because they could be missing something. We all have our own biases and blind spots that can impact the problems we see and the solutions we prefer. Hiring a financial planner puts a second set of eyes on what you are doing. You have no idea what blind spots you have or what you are just not seeing or thinking about. Your financial planner can help you avoid mistakes that could be made by having these biases and blind spots.
There are way more than 5 reasons to hire a financial planner, but these are the top 5 I see for millennials to hire one. These are also the main reasons why my clients say they love working with us at AllStreet Wealth.
If you enjoyed reading and are looking for an advisor, here is the link to book your first free meeting with me!
Disclaimer: none of this is advice, it is just for informational purposes. Talk with your financial planner before implementing any of these strategies.