9 Times You Need to Talk to a Financial Advisor

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DIY money management has become commonplace in recent years. Nowadays, it's not hard for anyone to make a budget, pay taxes or even invest money for retirement, thanks to financial planning tools like Quicken, TurboTax and Betterment.

Still, there are situations where it's a smart idea to hire a financial advisor.

A financial advisor is a professional who can provide expert guidance in areas such as retirement, taxes and investing. While anyone can call him or herself a financial advisor, professional designations, such as certified financial planner and chartered financial consultant, indicate an advisor has attained a higher level of competency.

Why work with a professional? A quality advisor will listen to your goals, examine your current finances and recommend strategies to minimize taxes, maximize savings or reduce debt quickly. Many planners don't charge for an initial consultation. However, some may charge an hourly rate of $100 to $200 to create a financial plan or discuss a specific financial topic, says David Totah, certified financial planner and senior wealth advisor with Exencial Wealth Advisors in Frisco, Texas.

While you don't always need to work with a planner on an ongoing basis, these are nine times when it makes sense to stop in for some financial advice.

When you get your first job. It doesn't matter whether it pays $20,000 a year or $200,000 a year, starting your first job is a good reason to check in with a professional financial advisor. Not only can a financial planner offer guidance on how best to begin saving for retirement, he or she may also provide insight on how to maximize your employer's benefits package.

"I like to think that when people are young and starting to make money, they would want to put together a good financial plan," Totah says.

When you get married or divorced. Another good time to seek out professional financial advisors: whenever you enter or leave a marriage. Bringing in an unbiased third party can help minimize financial losses in a divorce and may make it easier for engaged couples to have conversations about combining assets and income in marriage.

"One of the biggest reasons people should work with a financial planner is so that they don't make emotional mistakes," says Richard Wald, managing director of Merrill Lynch Wealth Management. For example, a spouse might feel attached to a family home and insist on keeping it as part of a divorce settlement. In exchange, he or she may lose out on retirement savings that could prove to be much more valuable in the long run.