4 Ways A Financial Consultant Can Help You

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Financial consultants are professionals who can offer you advice regarding a diverse array of issues. If you want to understand how they can assist you, though, it helps to break the work into four broad categories. Let's look at each one and learn how you might benefit from a financial consultation.

Retirement Planning

Consultants frequently serve as retirement plan advisors. If you're trying to figure out how to maximize your 401(k) contributions, for example, a consultant can explain how the process works and where the sweet spot is.

Similarly, retirement plan advisors help their clients figure out how to minimize tax hits. They might tell you to structure your retirement account withdrawals so you take them post-retirement and have the least taxable work income. This ensures that the taxable amount isn't being floated higher by any other income.

Saving for Major Goals

Another reason for you to ask for a financial consultation is to lay out a plan for a major goal. Young people, for example, often need to think about how they're going to pay for their first homes. Likewise, you might want to speak with a financial advisor before starting a business. They can determine whether you have enough money to start pursuing a goal and how much you might need to sustain yourself if there are rough patches at the beginning.

Using Debt as a Tool

Once you get to the point that you're interested in the advice of financial consultants, you should be thinking about debt as a tool. Many people see debt as an inherently negative thing. Professionals in the financial consulting world, though, see debt as something that can be a net positive. By building your credit and leveraging your existing assets, you can reduce the interest you pay while also making more funds available from your pool of wealth. As you develop strong relationships with lenders, you'll also gain access to more financial vehicles to take advantage of debt as a tool.

Wills, Estates, and Trusts

You'll need an attorney to assist you with the legalities. However, the attorney is going to want to know what you have in terms of assets and liabilities. A financial advisor can help you to itemize your assets and debts, making it easier to iron out the details of an estate or a trust. They also can identify potential tax events and point you toward ways to minimize your exposure.  

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About Me

Making The Decision To Plan Your Financial Future When it comes to making things right for you and your family, there are only so many times you can struggle with finances. I didn't used to care too terribly much about finances, but after dealing with near bankruptcy more than a few times, I knew I had some big decisions to make. I started working with a financial planner to address various issues that we were facing, and we realized that there were some mistakes we kept making time and time again. After going through and evaluating our spending, we made some big steps towards clearing up our finances. Read more on this website to learn about finances.