Five Signs You Need a Financial Planner

Article written by Scott M. Kahan in Stroll Chappaqua - June 2024 Magazine

You may have questions, and with a little research online, you figure you will find the right answers for your situation. This approach may not necessarily be the best course, though. When it comes to finances, small mistakes can have long-term negative impacts.

HERE ARE SIGNS YOU MAY NEED A FINANCIAL PLANNER:

• You recently married. To merge or not to merge finances is a question we hear all the time. Each spouse enters a marriage with their assets,  liabilities, and cash flow needs. Communication during this transition helps you navigate possible questions about taxes, investment allocation updates, selecting benefits, joint roles in household management, deciding whether to maintain separate bank accounts, and more. A financial planner can help steer you through these issues.

• You own a business or are thinking about starting one. What entity type should it be: corporation, LLC, or sole proprietor? What are the tax issues, and how do you manage cash flow areas that need to be discussed? Don’t overlook insurance to protect your family and setting up a retirement plan. There are many options that we find people are often not aware of.

• You want to buy a new house. How much home can you afford? What’s your budget for home maintenance? What are the tax considerations that need to be looked at? With interest rates higher, many people feel they can’t afford to buy. Often, though, when we run the numbers, people find they can afford more than they thought possible.

• You make a career or job change. Make sure you maximize your company benefits, including disability, medical, and life insurance. Look at what the new company offers and take full advantage of a retirement plan. A question often arises is what to do with a 401K at the previous firm. You can roll it over to an IRA, but transferring it to your new firm’s 401K may make sense. 

• Your family is growing. Having a child often leads to a discussion regarding childcare costs, proper insurance for your family, and, of course, funding college. What is the best way to save for college and plan for future expenses is something a financial planner can help with.

A Certified Financial Planner ™ professional can help answer your questions and develop a plan to meet your goals and objectives. This is what we are trained to do. The first step in asking for help always seems the hardest. But rest assured, it gets easier from there!