Whether you’re saving for retirement or for your children’s college education, reaching your monetary goals typically requires putting together a financial plan to help you get there. If that feels overwhelming, you may be wondering if you should consult a financial advisor.
More experienced investors may also reach a point when talking to a financial advisor might come in handy, such as when they’re contemplating making a major move with their money.
So how do you know if — and when — working with a financial advisor is right for you? Taking a “do I need a financial advisor?” quiz, like the one below, can help.
What Is a Financial Advisor?
A financial advisor helps individuals manage their money and create a financial plan for the future. A financial advisor can help you create a budget, plan for retirement, and pay off debt among other things.
An advisor can help you reach your financial goals. That kind of assistance can be useful if you’re not quite sure how to reach those milestones yourself.
Of course, working with a financial advisor means paying a fee for their services, which is typically around 1% of the assets they manage. So before you hire an advisor, consider whether the expense is worth it for you.
Financial Planning Quiz
If you’re still not sure whether you need financial planning help, taking the quiz below can help you decide if reaching out to a financial advisor makes sense for your situation.
You Need a Financial Advisor
If the quiz says you could benefit from some professional financial help, a financial advisor could help you plan for your future.
For instance, they can help you create a budget to keep on track with spending. By controlling what you spend, you may be able to begin saving for your financial goals.
If you’re going through or facing a life change, such as a new baby or a job loss, a financial advisor could help you navigate through and manage it financially. They can help you set up an emergency fund to help deal with unexpected expenses that come up.
For those dealing with debt, such as student loans or credit card debt, a financial advisor can also help come up with a strategy for paying down the debt owed so that it doesn’t keep piling up.
Finally, a financial advisor can help you save and invest for retirement as well as other important milestones, such as your kids’ college or a new home. These are all things to keep in mind when choosing a financial advisor.
Get up to $1,000 in stock when you fund a new Active Invest account.*
Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.
*Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
You Don’t Need a Financial Advisor Right Now
Your quiz answers indicate that you’re doing a good job of saving and investing for your future and that you have a solid plan in place. Congratulations!
That means you likely have an emergency fund with enough in it to cover at least six months of expenses if needed, and you’re probably saving the standard recommended amount of 10% to 20% of your take-home pay.
In addition, you likely have a 401(k) to which you’re contributing the maximum amount and also getting your company match (if applicable), and you possibly have other retirement accounts opened as well, such as an IRA.
Your answers also indicate that you feel pretty comfortable with investing, and you have a good handle on how much risk you can tolerate. At some point, if you decide to diversify your portfolio and branch out into investments you’re not familiar with, such as real estate, you may want to consult a financial advisor at that time. In the meantime, keep up the good work!
The Takeaway
A “Financial Advisor Quiz” can help you determine if you could benefit from some extra help with your financial strategy. It can also help you see what kind of shape you’re in financially and what you might need to do to help secure your future, including ways to save and invest.
Whether you need a financial advisor or not, having a plan in place to reach your financial goals is a very important step to take.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOIN1023126
