When it comes to financial planning there’s no one-size-fits all solution. We all have unique needs and goals, and the human experience means no two individuals will ever walk the same exact path through life.

This also means not everyone is going to have the same needs when it comes to seeking out the services of a financial advisor.

So, while it’s nearly impossible to issue a blanket statement that answers the question, “When should I seek out professional financial guidance?” there are certain scenarios that can be difficult to navigate without professional guidance.

If you find yourself in any of the scenarios outlined here, it may be time to speak to a financial advisor for help into your unique financial planning journey.

Scenario 1: A roadmap to how to help make those goals a reality

It’s difficult – if not nearly impossible – to put together and execute a financial plan if you don’t know what you’re working toward. It would be akin to going for a drive without a clear destination in mind.

To complicate matters, it’s rare for investors to only have one singular financial goal in mind. When you’re just starting out, you might be making contributions to a retirement account, saving for a child’s future education costs, thinking about buying a home, paying off student loans, and a variety of other broad goals. Speaking to a financial advisor at this point can help you establish clear and concise financial objectives, as well as understand your time horizon, tolerance for risk, and more. The end result should be a clear understanding of what it is you want to achieve financially – and more importantly – a roadmap for how to help make those goals a reality.

Life would be simple if we only ever had one goal to pursue at a time, but the reality is most families have several goals they’re balancing at any given moment.

Speaking with a financial advisor is a useful way to help you prioritize these goals and begin making appreciable progress toward them.

Scenario 2: Insight and guidance into navigating market volatility

There will always be some level of uncertainty in markets, but the amount of volatility varies considerably over time. Investors need to be prepared to weather these uneven periods that will come and go over a given time horizon.

That’s where working with a financial advisor could provide real value. While a financial advisor can’t predict how the market will behave, they can help you understand how your portfolio may react to market swings.

They can also help you diversify your portfolio and help mitigate some of your exposure to risk, thereby helping you to stick to your investment strategy and position yourself to capitalize on any subsequent market gains.

There’s no shortage of information out there when it comes to market analysis and predictions, but it can be difficult to determine just how much of this information represents real knowledge. Speaking with a financial advisor can help you see the signal through the noise and give you the confidence to stick to your investment strategy even during periods of market volatility.

Scenario 3: Planning for retirement

As retirement begins to approach you might think things will be a bit more in focus. Instead, this is a time when investors need to begin asking themselves a lot of difficult questions.

The first step is to define what your retirement is going to look like. What do you want to do with your time? Travel? Start a business? Spend time with family and friends?

Next, you need to figure out how much your retirement lifestyle is going to cost. What are your fixed expenses like a mortgage, groceries, and health care? How much do you set aside for discretionary spending like dining and leisure?

From there, you need to determine how long you expect retirement to last. Based on national averages, it’s not uncommon for retirement to last 20-30 years.1

Finally, you need to figure out how you’re going to pay for it all. Common sources of retirement income can include pensions, employer-sponsored qualified retirement plans, IRAs, Social Security, and annuities.

But what if there’s a gap between your expected retirement costs and the income these sources can provide? Speaking with a financial advisor can help you to identify these sorts of retirement income gaps and formulate a plan to help close them.

An advisor can also help you determine which sources of income to draw from, and when, helping ensure your assets are able to go the distance in retirement.

Scenario 4: Major life changes

Whether life’s changes are planned or unplanned, they’ll have unique impacts to your investments. Marriage means decisions on combining finances, employment benefits, and investment accounts. Having a child requires planning for added expenses today, but also planning for future education costs. Divorce can involve the splitting of family finances and decisions around financial responsibility for minor dependents. All of those life changes require adjustments to beneficiaries alike for things like retirement and investment accounts and employment benefits.

Life events can be both exciting and stressful, without considering what they mean for your financial future. An advisor can help you evaluate what adjustments you should make to saving, spending and investing, so you’re set for whatever your new normal is.

Scenario 5: Receiving a windfall

There may be few more exciting events than experiencing a financial windfall, such as the sale of a business, or even a lottery win. But windfall gains also come with tax considerations and new opportunities around spending and investing. With an influx of resources, it can be hard to remain disciplined on making spending choices that are in-line with your long-term goals.

A financial windfall might be the impetus for you to seek an advisor or become more engaged with one. Regardless, a financial advisor can help consult on decisions around spending and investing, so that financial influx won’t disappear as quickly as it arrives.

Who might not need an advisor’s help?

A financial advisor can help you navigate saving and investing for many of life’s unique scenarios as well as the everyday decisions to help you meet long-term goals. But the guidance comes at a cost, and for some, a financial advisor may not be necessary. A financial advisor may not make sense for you if:

  • You feel comfortable managing your own finances.
  • Your financial situation is less complicated or you’re just starting your career.
  • It’s not affordable or cost-effective with your budget.
  • You can rely on family or friends for guidance.

The bottom line

While you may not need to speak to an advisor on a daily basis, there are key moments in your personal financial life that will likely kick-off the need to make a flurry of decisions. It’s at these moments that working with a financial advisor can help you better understand your circumstances and take action.

It all starts with a conversation

At the end of the day, when it comes to subjects as complicated as investing and retirement, it’s only natural to have questions. During those moments when you want clarity, speaking with a financial advisor can help.

At PNC Wealth Management, we utilize a goals-based approach to financial planning. Our financial advisors take the time to understand you, your family, your needs, goals, and more; and they’ll use that information to provide you with personalized guidance and insight.

To discuss your financial plans in more detail, contact a PNC Wealth Management financial advisor, today. Call 855-PNC-INVEST to get started.