When Should You Get a Financial Planner? Key Indicators and Considerations

Money is part of almost every big decision: starting a new job, buying a home, or planning for the future. While some financial choices are simple, others feel confusing and can have a long-term impact. That’s when having the right help makes a difference.

A financial planner is wrongly considered to be an essential part of the wealthy individual or people close to retirement. But this is not true; they can help at any stage of life, giving you clear guidance when you need it. No matter if you’re facing a big change, working toward a goal, or just want to make smarter money decisions, knowing when to get expert advice can save you time, stress, and money.

So to get the answer to, “When should you get a financial planner?” Let us start with some key signs that can help you determine when it is time to work with a financial planner and how they can help you move forward confidently.

Signs You Need a Financial Planner

Life is full of big decisions, and sometimes, managing your finances through these changes can be difficult. That’s where a financial planner comes in. So, when should you get a financial planner? This section will answer just that!

Handling a Windfall or Inheritance

Receiving a large sum of money, like an inheritance, lottery winnings, or a big bonus, is thrilling but can also be confusing. What’s the best way to use or save it? A financial planner can help you understand tax implications, create smart investment strategies, and set plans to preserve this newfound wealth for the future.

Getting Married or Divorced

Marriage and divorce are life-changing events, and they often come with financial changes too. Whether you’re merging finances, creating joint goals, or going through complex settlements, a financial planner can help make the process easier. They’ll guide you through questions about updating investments, deciding on benefits, or even managing joint assets.

Welcoming a New Family Member

Growing your family brings joy and with that, new financial responsibilities too. These milestones need careful thought, from planning for childcare expenses to saving for college. A financial planner can help you secure your family’s future, ensuring your finances are ready for future expenses.

Starting or Running a Business

Owning a business or planning to start one involves big financial decisions. What’s the right business structure: LLC, sole proprietorship, or corporation? How do you manage cash flow, taxes, and retirement plans? A financial planner can help you cover all the bases, from choosing insurance to setting your business up for long-term success.

Buying or Selling a Home

Thinking about purchasing your dream home or selling your current one? It comes with finding the perfect property plus making smart financial decisions too. A financial planner can help you figure out how much you can afford, understand mortgage options, and budget for maintenance costs. They’ll also ensure your property decisions align with your bigger financial goals.

Changing Jobs or Careers

A new job often means exploring new benefits and making decisions, such as maximizing health, life, or disability insurance. Not sure what to do with your old 401(k) (a retirement savings plan sponsored by an employer)? A financial planner can help you decide whether to roll it into an IRA (Individual Retirement Account, a tax-advantaged investing tool that individuals use to earmark funds for retirement). savings) or transfer it to your new employer’s plan, keeping your retirement savings on track.

Planning for Retirement

As retirement gets closer, it’s important to have a solid plan in place. A financial planner can guide you in assessing how ready you are, optimizing income strategies, and managing your investments. The goal? To make sure you enjoy retirement without the heavy stress of your finances.

As you can see, life’s big changes are easier to manage when you have the right guidance. A Certified Financial Planner at Focus CPA can answer your questions, simplify your decisions, and create a plan based on your goals. 

Setting and Achieving Financial Goals

Setting and achieving goals are essential to building a secure future. But when should you get a financial planner to help with this process? A financial planner plays a key role in both these steps, helping you define success and crafting a plan to make it a reality.

How Do Financial Planners Help Set Goals?

The first step is getting clear on your goals. A financial planner helps you map out what you want—retirement savings, a new home, or your child’s education—and builds a plan that fits your finances. It’s about setting realistic, achievable targets that move you forward.

Use this checklist to ensure your goals are clear, practical, and achievable.

  • Specific: Does your goal have a clear purpose? (e.g., saving a set amount for a home, retirement, or emergency fund)
  • Measurable: Can you track your progress? (e.g., setting a monthly savings percentage or investment target)
  • Achievable: Is your goal realistic based on your current income and resources?
  • Realistic: Does it fit your lifestyle and long-term financial expectations?
  • Time-bound: Have you set a deadline to stay focused and accountable?

By breaking down your financial aspirations into manageable pieces, a financial planner creates an easy-to-follow way for you.

Turning Goals Into Action

Once your financial goals are set, the next step is making them happen. A financial planner helps you take practical steps to bridge the gap between where you are and where you want to be. Here’s how they do it:

  • Assessing your current finances: This includes reviewing your income, expenses, and savings to understand your financial standing.
  • Identifying shortfalls: They calculate the gap between your current resources and the amount needed to achieve your goals.
  • Creating a detailed plan: Based on the shortfall, they suggest actionable steps like adjusting your budget, increasing savings, or exploring new income sources.

But turning goals into action doesn’t stop there. Financial planners also ensure your plan accounts for these essential factors:

  • Budgeting for control: They help you develop a structured budget on yearly, monthly, and weekly levels to track income and expenses effectively. This process highlights areas of overspending and ensures you have a financial cushion for unexpected events.
  • Adapting for inflation: As costs rise, they help you revise your financial plan to maintain purchasing power. This includes choosing investments that outpace inflation, such as stocks or mutual funds.
  • Investing strategically: They guide you in implementing your plan through smart investments, like Systematic Investment Plans (SIPs). This disciplined approach allows you to grow your wealth while mitigating risks.
  • Building a contingency fund: A planner ensures you have a safety net of 6–24 months’ worth of expenses so emergencies don’t derail your long-term goals.

A financial planner at Focus CPA ensures your financial strategy isn’t just a static plan; it evolves with your circumstances. 

Choosing the Right Financial Planner

Knowing when should you get a financial planner is just the first step, but it’s all about finding someone you trust to guide your financial decisions. Here are some tips that can make the process simple and stress-free:

1. Know What You Need

Start by figuring out why you need a financial planner.

  • Are you looking for help with budgeting, retirement planning, or managing investments?
  • Do you need advice for a specific goal, or are you looking for ongoing guidance throughout the year?

Being clear about your needs will make it easier to narrow down your options.

2. Understand the Different Types of Advisors

Not all financial planners offer the same services, so it’s important to understand the types available:

  • Robo-Advisors: These are automated services that build and manage your investments using algorithms. They’re a budget-friendly option but may lack personal interaction.
  • Fee-Only Advisors: These advisors charge a flat fee or hourly rate and don’t earn commissions, making them less likely to have conflicts of interest.
  • Fee-Based Advisors: They may earn commissions from selling financial products, which could lead to potential conflicts.
  • Wealth Managers: Designed for high-net-worth clients, they offer comprehensive services like estate planning and tax planning.

Make sure you ask whether the advisor acts as a fiduciary, which means they’re required to prioritize your interests over their own.

3. Check Their Credentials

Look for well-known certifications like:

  • Certified Financial Planner (CFP)
  • Chartered Financial Analyst (CFA)

These designations show they’ve completed rigorous training and follow strict ethical standards. You can verify credentials using resources like the CFA Institute or the CFP Board’s website.

4. Research Their Background

Before committing, do a little digging:

  • Use tools like FINRA’s Broker Check to review their employment history and check for any disciplinary actions.
  • Ask about their experience and the types of clients they typically work with.

5. Compare Costs

Financial advisors charge fees in various ways, so it’s important to understand what you’ll be paying:

  • Robo-Advisors: Typically charge around 0.25% of assets under management per year.
  • Fee-Only Advisors: May charge hourly, annually, or a flat rate for their services.
  • Fee-Based Advisors: Could combine hourly rates with commissions on products.

Author

Mr. Amit Chandel

Amit Chandel is a “Certified Tax Planner/Coach”, and “Certified Tax Resolution Specialist”. He has extensive experience in Tax Planning and Tax Problem Resolutions – helping his clients proactively plan and implement tax strategies that can rescue thousands of dollars in wasted tax.