Let's face it, finances can feel overwhelming. Between bills, unexpected expenses, and long-term goals, it's easy to lose track of where you stand. A regular financial check-up is essential for ensuring you're on the right track toward financial security. Here are five key questions to ask yourself, along with some tell-tale signs that it might be time to bring in a financial planner for expert guidance.

1. What Are My Financial Goals?

This might seem like a simple question, but it's the foundation of any sound financial plan. Financial goals can be short-term, like saving for a vacation, or long-term, like planning for retirement. Having a clear vision of your goals helps you prioritize your spending and make better financial decisions.  For example, if your goal is to retire comfortably in 20 years, calculate how much you need to save each month and develop an investment strategy to reach that target.

Signs it's time for a financial planner:

• You have multiple financial goals, but you're unsure how to prioritize them.
• You're not sure how much you need to save to reach your goals.
• You're overwhelmed by different investment options.

2. Is My Investment Portfolio Diversified?

Diversification is a cornerstone of any successful investment strategy. It simply means spreading your investments across different asset classes, such as stocks, bonds, and real estate. This helps to mitigate risk.  If one asset class performs poorly, the others can help to offset those losses.  Imagine, for instance, you have all your money in a single tech stock. If that company faces challenges, your entire portfolio suffers. Diversify by adding bonds, international stocks, or real estate investment trusts (REITs).

Signs it's time for a financial planner:

• Your portfolio is heavily weighted in one asset class.
• You're unsure how to choose the right investments for your risk tolerance and time horizon.
• You're worried about the volatility of the stock market.

3. What Is My Credit Score?

Your credit score is a three-digit number that reflects your creditworthiness. It's a key factor in determining your eligibility for loans and the interest rates you'll be offered. A good credit score (generally considered above 670) can save you thousands of dollars throughout your lifetime on things like mortgages, car loans, and even insurance premiums.

Signs it's time for a financial planner:

• Your credit score is low, and you're not sure how to improve it.
• You're considering taking out a loan, and you want to know how to get the best possible interest rate.

4. Have I Updated My Will and Estate Plan?

Estate planning is the process of creating a plan for how your assets will be distributed after you pass. It's an important step to ensure your loved ones are taken care of and that your wishes are carried out.  A will is a legal document that names a beneficiary who will inherit your assets. However, an estate plan can also include other documents, such as a trust, power of attorney, and living will.

Estate planning isn’t just for the wealthy—it’s for everyone. A will ensures your assets go where you want them to after your passing. Review your will periodically, especially after major life events (marriage, birth, divorce).

Signs it's time for a financial planner:

• You haven't created a will or updated it in recent years.
• You have complex assets, such as a business or real estate.
• You have young children or dependents.

5. Do I Have an Emergency Fund?

Life is unpredictable, but an emergency fund can act as your financial safety net. An emergency fund is a pool of money that you can tap into to cover unexpected expenses, such as car repairs, medical bills, or job loss.  Having an emergency fund can give you peace of mind and help you avoid going into debt when the unexpected happens. Ideally, your emergency fund should cover 3-6 months of living expenses.  This, however, is easier said than done.  A recent Fed survey shows that nearly 4 in 10 Americans can’t cover a $400 emergency expense.

Signs it's time for a financial planner:

• You don't have an emergency fund at all.
• Your emergency fund is not enough to cover your essential expenses for several months.
• You frequently rely on credit cards to cover unexpected expenses.

Conclusion
While this financial check-up can be a great starting point, a financial planner can provide even more comprehensive guidance. A qualified financial planner can help you:

• Develop a personalized financial plan: A financial planner will work with you to understand your unique financial goals, risk tolerance, and time horizon. They will then create a customized plan that outlines the steps you need to take to achieve your goals.

• Make smart investment decisions: Financial planners have a deep understanding of the financial markets and can recommend investments that are appropriate for your needs. They can also help you stay on track with your asset allocation and rebalance your portfolio as needed.

• Manage your debt: If you're struggling with debt, a financial planner can help you develop a strategy to pay it down. They can also help you negotiate lower interest rates on your existing loans.

• Plan for retirement: Retirement planning is a complex process, but a financial planner can help you make informed decisions about how much you need to save and how to invest your retirement savings.

• Protect your assets: Financial planners can help you understand the different types of insurance you need, such as life insurance, disability insurance, and long-term care insurance.

There are many financial planners out there, so it's important to find one who is a good fit for you. Look for a fiduciary financial planner in Alpharetta or Cumming, who has experience working with clients in your situation and who has a fee structure that you're comfortable with.

At Financial Consultants Group, we pride ourselves on providing our clients with personalized financial guidance and comprehensive financial planning services. Our team of experienced and qualified financial planners in Cumming, and Alpharetta can help you achieve your financial goals, regardless of your starting point.

We offer a complimentary consultation to discuss your financial situation and see how we can help. Contact Financial Consultants Group today to schedule your appointment and take the first step towards a healthier financial future.