Whether you are saving for a home, planning for retirement, or trying to find the best way to pay of debt, having a plan in place is important. Many choose to come up with their own financial plan in order to achieve their goals. Others decide to rely on the advice of a professional. Hiring a financial planner can certainly be beneficial. However, many are reluctant to hire a financial planner due to the cost. Here are three things to consider about financial planning.
It's Never Too Early
Many people believe that financial planners are only for the wealthy or those who are already financially established. However, a financial planner can be invaluable in your younger years. With the average student loan debt for those with a bachelor's degree coming in at $30,100, many people in their twenties and thirties are concerned with paying student loans. A financial planner can help you come up with a plan to pay off your student debt as soon as possible while still being able to save for retirement and other goals. Hiring a financial planner early on can help you set up a stable foundation for your finances for decades to come.
It Can Educate You About Your Money
Deciding what to do with your income can be a challenge. Things like how to effectively invest your money for retirement and how to pay down debt quickly may not be obvious to you. If you feel that you are simply not good at managing your money, then hiring a certified financial planner is a good option for you. A financial planner can devise a plan for your finances that will help you achieve your goals. If you simply hate managing your money, then a financial planner can also be very helpful.
When it comes to hiring a financial planner, you do need to weigh the costs. There are various ways that a financial planner can be paid. Some financial planners choose to paid a percentage of your assets each year, usually somewhere around 1 percent. Others charge a yearly retainer fee for their services, usually between $2,000 and $7,500 per year. If you need a financial plan, many advisers will charge a flat fee between $1,000 and $3,000 or an hourly fee ranging from $200 to $400. If you need help with your finances, chances are one of these options will work with your budget.
When it comes to your finances, hiring a financial planner can be a major help. It's never too early to get a financial plan and an adviser in place. A financial planner can educate you on the best way to invest your money and to achieve your goals. The cost of a planner can vary depending on your needs, however, you may be surprised at how easily a financial planner can fit into your budget.