Very often people forego the use of a professional financial planner simply because they think they don't have enough money for anyone to manage, or they fail to realize the benefits of such a professional. A person may be offered a certain retirement package through their employer and contribute to that, and then assume that this is all they need to do to plan their finances.
This type of thinking is very shortsighted and can actually cost you money in the long run. Note a few reasons why everyone should consult with a financial planner, no matter their financial situation.
1. Tax bills can be reduced
You may not think much of your tax bill if your employer takes taxes out of your check and you use a standard deduction every year. However, a financial planner can go over your income and expenses with you and note if you miss deductions and if it might be better for you to itemize your deductions every year. This will lower your tax bill every year and ensure you get the maximum return you're owed. An accountant may not be so willing to work with you to change how you file your taxes; he or she may simply handle the paperwork for you without actually giving advice, but a financial planner is there to work with you and lower that tax bill as much as possible.
2. Financial goals can be set
What are your financial goals? If you've never thought about that question, you will want to talk to a financial planner. He or she can suggest goals you may to have thought about, such as early retirement, college funding for your children, or even selling your home after so many years. A financial planner will look at your current finances and how you manage your money, and make suggestions for how to reach those goals.
This helps you in two ways. One is that you will be better able to reach those goals you work with your planner to set. The other is that the suggestions given to you by your financial planner can get you thinking about how your money can work for you. You may not thought about retiring early or being able to afford to buy a new home in several years, but this too is the advantage of working with such a professional. The more you consider your overall financial picture, the more likely you are to take control of your finances and make them work for you.
For more information, check out companies such as John Osborne & Associates.