When Is The Right Time To Talk To A Financial Advisor? – Forbes Advisor – Technologist

The right financial advisor can help you navigate your finances and tailor a strategy that fits your unique goals and circumstances. While these professionals can provide valuable insight into developing your comprehensive financial plan, their expertise can be particularly beneficial at tax time, during significant life transitions and when planning for your financial future.

We’ll explore the right time to talk to a financial advisor and how Datalign Advisory can help you choose a financial advisor to help meet your financial goals.

When to Talk to a Financial Advisor

Whether you’re reaching personal milestones, undergoing life changes or simply trying to align your finances with your future goals, these moments often warrant professional insight. Here are some scenarios where the expertise of a financial advisor could be invaluable.

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Tax Season

As you compile your yearly financial records, a financial advisor can offer insights into tax-saving strategies and help you navigate complex tax laws. They can assist in maximizing deductions and credits available to you and collaborate with your accountant, ensuring you are not only compliant with the ever-changing tax regulations but also positioning yourself to benefit from potential savings.

A one-time consultation may suffice if you primarily want advice to optimize tax filings for the current year, but if you have multiple income streams and investments or are facing significant life changes, constructing a comprehensive financial plan might be necessary.

Here are some questions to ask a financial advisor during tax season:

• What are the most impactful tax-saving strategies for my current financial situation?
• How can I better align my investment portfolio with tax efficiency?
• Are there any changes in the tax laws for this filing year that could affect my finances?
• What long-term tax considerations should I be mindful of for future financial planning?

If you want help on tax strategies, be sure your advisor is a licensed Certified Public Accountant (CPA) or is willing to work closely with your CPA.

Life Changes

Significant life changes may necessitate reassessing your financial roadmap to ensure it still aligns with new priorities and responsibilities. Marriage, the birth of a child or preparing to pay for college present opportunities to secure your future financial well-being through proper planning. A financial advisor can provide invaluable guidance on strategies for saving, such as setting up education accounts, including 529 college savings plans, to ensure future educational expenses are manageable.

Whether you need to adjust an already solid financial plan or your financial situation is more complex, consider working with Datalign Advisory to find a long-term portfolio manager.

Ask your financial advisor these questions if you’re going through a significant life change:

• How can I best prepare financially for a new family member?
• What are the advantages of setting up a 529 plan vs. other college savings options?
• In what ways will marriage alter my tax filings and financial planning needs?
• How can I safeguard my investments and retirement plans during a career change?
• Can you help me explore options for income protection in the event of disability or critical illness now that I have dependents?

Planning for the Future

When planning for your future, a financial advisor can help you craft a robust financial strategy that aligns with your long-term goals. Connecting with a pre-screened professional through Datalign Advisory can help you navigate investment choices, retirement planning, estate management and insurance options. Financial advisors can recognize growth opportunities and mitigate risks, preparing you for predictable milestones and unexpected turns.

Consider a consultation if your existing financial plan needs minimal adjustments or you want specific advice on targeted areas of your financial future. Alternatively, it’s smart to work with an advisor when you need to develop a detailed roadmap for long-term objectives such as retirement, major purchases or wealth transfer.

Questions to ask a financial advisor when planning for the future include:

• Given my current situation, how can you help me define long-term financial goals?
• What investment strategies would you recommend to achieve my retirement objectives?
• Can you explain how different insurance policies fit into my overall financial plan?
• How will we measure the progress of my financial plan?
• What estate planning tactics should I consider to ensure my assets are distributed according to my wishes?

Access to thousands of financial advisors.

Expertise ranging from retirement to estate planning.

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What Does a Financial Advisor Do?

A financial advisor is a professional who assists individuals in managing their finances by offering expert advice on investment choices, insurance decisions, retirement planning and other financial services. They take into account the client’s personal and financial situation, risk tolerance and goals to formulate a strategy that optimizes wealth creation and preservation.

Financial advisors routinely analyze market trends and make recommendations tailored to the client’s unique financial goals and needs. Their guidance is often key in helping clients navigate complex financial decisions, avoid common pitfalls and capitalize on opportunities that align with their long-term objectives.

The role of a financial advisor also extends beyond investment advice. They also provide comprehensive financial planning services that may include estate planning, tax strategies and preparation for life events such as marriage, buying a home and starting a business. A good financial advisor educates their clients about financial concepts, empowers them to make informed decisions and coordinates each aspect of a client’s financial life with an overarching strategy.

Do I Need a Financial Advisor?

Many Americans could benefit from financial guidance. In fact, according to the National Financial Educators Council, the average American incurred a cost of $1,500 last year due to a lack of personal finance knowledge.

In general, individuals with multiple income streams, significant assets or complex tax considerations can benefit from the guidance of a financial advisor. A professional can also help if you are navigating life transitions such as inheritance, divorce or retirement.

If you think a financial advisor might be helpful, Datalign Advisory can help you evaluate your needs and match you with a pre-screened financial advisor that aligns with your goals.

How To Find a Financial Advisor

Choose a qualified, experienced professional who aligns with your financial goals, values and communication style. Datalign Advisory simplifies this quest by matching and connecting you with the most suitable financial advisor in their network of top-tier financial advisors, each vetted and equipped to manage your financial future.

Here are some key factors to consider when selecting a financial advisor:

• Credentials and experience. Review each advisor’s qualifications and certifications to ensure they have the necessary training and knowledge. Look for certifications like CFP (Certified Financial Planner professional), CFA (chartered financial analyst) or CPA (Certified Public Accountant), which indicate a level of expertise and commitment to the profession.
• Specializations. Depending on your needs, you may require an advisor with expertise in areas such as retirement planning, estate management, tax strategies or investment analysis.
• Advisor’s philosophy. Assess whether the advisor’s investment philosophy and approach to financial planning align with your expectations and comfort level.
• References and track record. Request references and evidence of past performance to gauge their credibility and the satisfaction of their clients. You can look up advisors on the SEC’s Investment Adviser Public Disclosure website to confirm registrations and view past disclosures, like customer complaints or disciplinary events.
• Fee structure. Understand the advisor’s compensation structure—fee-only, fee-based or commission-based. Ensure the advisor is upfront about their fee structure.
• Communication. Determine how and how often you will receive updates and communicate with your advisor.
• Conflict of interest. Identify potential conflicts of interest the advisor may have and how they address them to act in your best interest.

Navigating the financial landscape can be daunting, but the right financial advisor can act as your compass, ensuring you stay on track toward your long-term objectives. Fortunately, if choosing an advisor feels intimidating, Datalign Advisory can help.

How Datalign Advisory Can Help

Datalign Advisory leverages advanced algorithms and user-inputted data to match you with financial advisors with the skills and expertise best suited to your unique personal and financial situation. Here’s how the platform works:

• Pre-screened advisors. Datalign pre-screens financial advisors by carefully reviewing their disclosure and disciplinary histories so you don’t have to look them up yourself. The company further vets advisors through interviews to evaluate their areas of expertise.
• Personalized matching. Upon completing a questionnaire with your personal and financial details and goals, Datalign Advisory analyzes your profile against its network of financial advisors.
• Consultation.  As part of the process, Datalign shares your information with your singularly matched advisor. Once Datalign identifies a good fit, you’ll be provided with an opportunity to set up a call with your recommended and matched financial advisor. You are under no obligation to speak with your matched financial advisor.

By streamlining the selection process, Datalign Advisory helps you find a trustworthy financial advisor and can foster a more informed, confident journey in managing your wealth.