For many people, getting help from a professional financial adviser seems like a luxury exclusive to others who can afford it. Although this may be true for matters like wealth management, money decisions that ordinary people make daily must be dealt with as seriously as possible.
Your daily requirements may not really require sophisticated financial planning. Your income may be covering your expenses just barely, and any little extra is going into a savings account.
But still even if you’re on a tight income and small savings, you probably don’t afford any losses by putting your money in the wrong investment or savings scheme. In addition, life is never so stable, and there are many situations that may push you beyond your comfort financial zone and test your knowledge of how to handle money.
Here are a few examples where seeking professional help may be a good decision to keep yourself on the right path.
Homebuying
Homebuying is more than just findig a house that you like, getting a mortgage, and settling it. It is an investment that you must be certain that it is done correctly. You will need to know how much house you can afford, whether this house will be a good investment within the time frame you’re planning to keep it, and whether you will be able to get out of it easily when you eventually decide to.
All of these questions and more — related to funding options and costs — may be difficult to answer if you’re doing your research yourself. Although not impossible, seeking as much help as you can from professionals can be invaluable.
Having said that, it is important that you verify that there is no conflict of interest. For example, a bank representative may be leaning toward swaying you to close a deal as soon as possible. A real estate agent may not have your best interest at heart if a commission is on the line. That is why make sure that you seek help from an independent financial adviser who is familiar with the housing market in which you’re buying.
Family complications
When money and laws meet, many people get lost in what they are entitled for and why. This is a situation where you may not even be sure about what you can get and how to approach the situation. Think of situations of inheritance or divorce.
If you find yourself having to deal with money issues in a legal context that you don’t fully understand, get help. In many cases, you may need not only a financial adviser, but an attorney as well. Considering the significance of these decisions and the amount of money and possessions that may be at stake, investing in a few paid hours of professional advice is a small price to pay.
Long-term options
There are many traditional savings vehicles that people resort to quickly — and with confidence. But there are many options out there for longer-term savings that you may not even be aware of. Find someone to walk you through the best saving options if you’re saving for your retirement, children’s college, relocation to another country, etc.
The point of understanding these programmes is to make sure that you’re getting an option that will work for you now as well as several years down the road. Look for what these programs offer in terms of return on your money, flexibility if you withdraw the money for another purpose or relocate, etc.
Planning for retirement is an example that needs to be discussed with a professional. Many financial advisers may have tailored programs that you pick and choose from, but they may also be willing to work with you on solutions that fit your current financial situation.
Rania Oteify, a former Gulf News Business Features Editor, is a Seattle-based editor.
