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When should you get advice?

Getting financial advice is often overlooked for important life events and sometimes you really need advice from other professionals too.  Many times we don’t realize that certain events have many other consequences that are beyond our base of knowledge.  Knowing when to seek advice is really an important skill to develop.
Generally, what types of life events should we seek financial advice?
Any event that has a significant impact on your financial situation and one that you have never experienced before is usually an event that you should seek out help.  These can be an influx of money or new expenses or a situation that is new and complicated to you.
What are some of the events that might require advice?
One of the biggest is receiving an inheritance.  Most people will experience this at some point in their life and knowing what to do regardless of the amount is important.  Besides tax implications there are several other questions such as how much to save, how much to pay off other debt and even how much that can be spent.  Often times this event is wrought with emotion because it is usually a loved one or someone very close to you and there may be other family members involved which can add significant complications.
What might be another common event that requires advice?
A change in your family status is very common event that should be discussed with a professional.  Getting married, divorced or adding your first child all have important financial decisions that must be made. There are questions about insurance, retirement savings, educational savings and even tax situations that need to be worked through for all three of these events.
What might be a negative event that getting advice would be helpful?
One of the most common is getting a severance package from your employer.  These often times have unique tax consequences to consider and can be very tricky to negotiate.  Plus, there could be clauses with accepting the severance package that might not be agreeable in the future.  Having someone who understands employment law review the agreement is an important and worthwhile step in this process.
It sounds like not all of these situations are about talking to a financial planner?
That is correct, tax advisors, financial planners and attorneys are going to be needed throughout our life so making that connection early is important.  We really haven’t even talked about half of the life events that that we probably should seek advice. Other examples include buying or selling a home, getting involved in an real estate development project, or any other situation that has significant consequences.
When is a good time to get advice from your family?
Advice from your family can be tricky, so only ask them things that you know they will be honest and objective about.  For those just starting out, talking to your parents about which job to take or help in setting up a budget is probably appropriate.   Getting information on the best mutual fund might be best found from a financial advisor instead of your family, unless you have a family

Posted: 8/7/2015 with 0 comments

Categories: Money Matters, Planning

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