Have you landed your first big job in your chosen career? This is an exciting time, with lots to do to get ready. But is meeting with a financial planner on your 'to-do' list? If not, it probably should be. Why? Here are a few key reasons.
1. You Start Out In the Best Way
If you've been presented with a great opportunity, it's easy to be overwhelmed by the excitement and the big paycheck you may suddenly be earning. But the financial habits you form now will affect you forever. If you allow yourself to avoid saving or live extravagantly now, it will be much harder to learn a new way later. You and your advisor can set goals and automate good financial habits.
2. You Reduce Your Lifelong Burden
The earlier you begin making goals and investing in them, the less difficult it will be to reach these goals. Someone who starts retirement savings in their 20's will only need to put away a fraction of their actual earnings, versus what they would have to save if they were starting later in their career. So, the sooner you start, the easier it will be for the rest of your life.
3. You Learn About Options
As you start your career, you're about to encounter a variety of compensation and benefit choices. How can you know the right ones to take and which to skip? A financial planner is a good ally to help you make these decisions. They can help you understand your 401(k) options, IRA choices, employer matching programs, types of life insurance, and taxable versus nontaxable benefits.
4. You Begin an Independent Plan
For most young adults, their first real career position is probably the biggest step toward being financially independent. Meeting with your own financial planner and taking sole responsibility for your own finances is another big step forward. Rather than relying on your parents to do tasks like arranging for beneficiaries and planning for taxes, you will start being the master of your own finances.
5. You Have a Confidential Source
Do you have any questions about money? Most people don't know where to seek out reliable answers. Your financial advisor is your personal source of information and recommendations. You can ask them any financial questions or express private concerns without it getting out to others. Remember, they've probably seen and heard it all, so you're unlikely to shock a finance pro.
Which of these benefits could help you most as you start out your new career? Whether you have questions you need answers to or want help making the smartest choices from the start, a fee-only financial planner can be just what you need. Learn more by making an appointment today.