Knowing When to Hire a Personal Financial Advisor

2019-02-14T19:31:21+08:00By |Financial Planning, Personal Finances|

People who are concerned over something will inherently seek out the advice of experts for a solution. The sick seek out doctors, those with car troubles seek out mechanic. What about those who have concerns regarding managing their finances? Let us introduce to you what a Financial Advisor does and when is the time to hire them.

Firstly, what is a Personal Financial Advisor?

  • A one-stop shop for all your financial advisory/planning needs.
  • Creates customized financial plans to best suit your needs.
  • Advises you on how best to save, invest, grow, and protect your money to meet your financial goals.
  • Advisory covered areas such as investment, insurance, loans, education funds, estate planning, taxes and retirements, according to customer requests.
  • Official credentials which are good indicators of an advisor’s experience:
    • Certified Financial Planner® (CFP®),
    • Chartered Financial Analyst (CFA),
    • Chartered Financial Consultant (ChFC)


So, when is it the right time to hire a Personal Financial Advisor?

Here are 5 factors that indicate it’s time to get acquainted with a personal financial advisor.

1. You are young and have little or no knowledge of managing your finances

Most of us grow up not getting a financial education. The subject of personal finance was not in our school syllabus. The common advice was to study hard, get good grades, find a secure job and stay there until retirement. We were never trained to manage our personal finances.

Today, if you feel clueless about managing personal finances, hire a financial advisor. It will speed up your money knowledge to achieve your financial objectives.

2. You have no inclination/desire or time to do financial planning on your own

This one is definitely one of the main reasons people hire a personal financial advisor.

I believe that most of the readers here are fairly smart and savvy individuals who could probably do financial planning on their own. But, they don’t. The problem is time. Precious time they don’t want to waste on the nitty-gritty know-how of money management. Some people also simply don’t like to deal with the figures. For situations like this, it is suitable to seek a financial advisor to sift through information for you to help you quickly pick up the necessary pieces about money management.

3. You want an objective and unbiased professional opinion.

Making the wrong financial decisions can be disastrous with huge emotional impact and is the is the main culprit in creating unhappiness in our life. Examples of frustrations caused by improper financial management include marriages ending in divorce due to lack of money, inability to treated major illness due to inadequate medical insurance, and long probate court procedure over inheritance because a person died without a will.

If you’re afraid of making mistakes with your financial decisions, you need more than just random opinions from unqualified people to make the right decision. You need professional advice from a financial advisor/planner.

It is also difficult to give objective feedback to our own financial decision. Thus, before making any life-changing decisions, you could use expert opinion.

4. You had a major event/change in your life

At different stages of your life, you may face major changes. These changes have significant financial consequences that require a financial advisor’s advice.


  • You got married.
    • Tackling combined finances. No more “my income, your income”. It can be even more complicated to combine finances than you are single.
  • You will retire soon.
    • The key financial moment in an individual’s life.
    • You know you need to plan for retirement but just don’t quite get around to it.
    • Start planning this big transition in your 20s and 30s, so that in your peak earning years you will save plenty.
    • Are you on track? Get a Financial Planner to verify for you.
  • You received a substantial windfall gain. You may never have had such a big sum of money before and want to know how to handle and grow the money received. For example:
    • You inherited a substantial sum from your parent.
    • Mutual and Voluntary Separation Schemes.
    • Tax implications.
  • A new baby is coming.
    • Many things, especially finances, need to adjust to cope with your growing family’s needs.
    • You should consider the education fund, estate plan, taxes, and risk management.
    • These are financial problems for your financial advisor/planner to consider.
  • You plan to buy a bigger or a vacation house:
    • A financial advisor/planner could advise you what to consider.
    • A financial advisor/planner can also help you get the loan process ready as it can be a complicated long-term commitment.
  • You recently got a divorce.
    • Returning to a single life might take some time to adjust particularly the finances that your ex-spouse used to handle.
  • Your elderly parents are now depending on you
    • You might be stressed because your income stagnates while your expenses grow.
    • A financial advisor/planner can advise you how to best spend your money.

5. A personal financial advisor is useful for everyone

Financial planning is no longer a luxury service for the rich and famous. It has become a necessity for everyone.

Your first step in financial planning is drawing up your financial plan. Everyone needs a financial plan especially when you start earning money to fend for yourself. It’s all you from now onwards.

A financial plan helps you to look at the big picture and set short-term and long-term objectives, a decisive step in shaping your financial future. It is easier to make financial decisions and stay on track to meet your goals when you have a financial plan. Working with a CFP ® professional can guarantee your financial well-being and help you achieve financial planning success.


Procrastination is one of the greatest obstacles to financial freedom. Be proactive in managing your financial life. Take actions to learn about money management. Appoint a financial advisor/planner if you can relate to any of the five reasons above. Lastly, ensure that you continue to invest in yourself and your financial future.

If you are seeking the services of a personal financial planner, you may contact us.

About the Author:

Eric Kiang
Eric is a qualified chartered accountant since 1992 and a member of Malaysian Institute of Accountants (MIA). He received his Diploma in Financial Accounting from TAR College and subsequently professional accountancy from ACCA.He has 25 years working experience in different finance-related jobs. He is now a consultant, and personal finance and business writer. His main goal is to help and educate non-finance professionals to understand and solve their personal finances problems. He believes everyone should be financially literate because everything we do has money implications! Eric currently resides in Kuala Lumpur, Malaysia with his wife and two young children.

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