Many Passive Income Now readers are very serious about their finances and are always looking for ways to improve their investment portfolios. Sometimes it makes more sense to manage your own money. There are also times where managing your money is not an endeavor you wish to engage in.
If you do choose to take the route of hiring a financial planner than you will probably be a little nervous at first. Here are a few important questions that you need to ask your financial planner:
1. What is my true financial situation?
It’s essential that you know whether you are pretty much financially screwed or not. Once the certified financial planners you have asked to look into your financial situation get a chance to look around it’s imperative that they answer this question. No matter where your certified financial planner tells you the good news is that this really is a new day. As corny as that may sound it’s true. If you’re on the right track financially then congratulations. If your financial situation requires some improvement then it’s time to step it up!
2. How should I be thinking about risk in this environment?
Hey guys did you hear about recession?
Okay let’s be completely honest here- all of us have panicked about this recession at one point or another. That’s okay. The problem is that some people panic with their money and decide to sell of their investments. The worth thing you can do in a bear market is to sell everything. Apart of the financial planner fee pretty much requires them to test out how risk adverse you are. Take advantage of this. Pick an investment portfolio that is right for you.
3. Do I need to change my time frame?
Are you investments too short term heavy? Perhaps you are too young to be so conservative. Your certified financial planner needs to sit down with you and help you determine if you are on the right track. Perhaps you might have to work a few years longer? Maybe you can retire early if you invest more aggressively?
4. How do changes in my personal life affect my financial situation?
Has your internet entrepreneurship venture greatly impacted your income? Are you earning way more money than ever before? If this is the case then maybe it’s time you took a few more calculated risks.
Then there is the other side of the spectrum. Perhaps your wife just had a baby and had to quit work. What’s going to happen to your investments now. Perhaps you are going to have to become more conservative.
5. When will I be ready for retirement?
Yes the big question. This is the whole point of life. You work to pay everything off and then one day you retire. What if your nest egg isn’t quite ready for freedom 55? Hopefully your financial planner can help you determine at what age you will be ready to call it quits and lay on the beach in Mexico all day.