Issues A Financial Planner Will Discuss With You If You Want To Start Investing

Posted on: 8 November 2018

Planning for the future is something financial planners recommend starting as soon as possible, as the more time you have to plan this, the more money you will be able to save. If you are currently interested in starting to plan for retirement, but do not know where to start, you could find out some great information by meeting with a financial services specialist. When you meet with him or her, there are several important things the planner will discuss with you, and here are three of these topics.

Your risk level

The level of risk you are willing to assume will play a big role in the types of investments you choose to put your money in. When people are young, they typically have higher risk levels, simply because they have more time to save money, and this gives them more freedom when it comes to playing risks. People on the older side of the spectrum typically have lower risk levels, because they do not have time to take a lot of risks.

Risk is a huge part of investing your money. Investment options that are high-risk have the potential to yield high returns, but they also have the potential to cause people to lose a lot of money. Low-risk investments may offer steady returns, but they will not be high returns. They will be safe, though, which means you will not have a huge risk of losing any money. For a financial planner to help you, he or she must know what your risk level is at this time.

The types of investments you have access to

Secondly, the planner may ask you about the types of investments you currently have, and he or she will primarily want to know if you have access to a work investment program, such as a 401k. If so, the planner may suggest maximizing this investment before utilizing other types.

Your current financial situation

The other important aspect of investing is analyzing your current financial situation. If you currently have no money saved and have piles of debts, the planner might suggest paying these off before you start investing. Every case is unique, and you will need to talk to a professional if you want help with your finances and investments.

After talking to a financial planner about these three things, he or she will be able to give you some tips and advice to help you begin planning for retirement. If you are interested in learning more about this, contact a financial planning firm today.


When to Use a Financial Advisor

Hi, my name is Melinda Jacobs. My husband John and I are in our 50s, and we both still work full-time jobs. I used to be of the mind that we should put every spare penny into an interest bearing savings account. That is, until we started going to a financial adviser. Our finance consultant has showed us how to manage our money in a manner that is going to not only sustain us today but also in the future. I would like to share some of what we’ve learned about saving and managing money in today’s economy and why the days of putting money into a savings account is not really practical. I hope that what I have to share proves to be beneficial to you.