Accounting in the year 2020 is dramatically different than it was for your parents or grandparents. Instead of hiding money in your home or attic like they used to, it is wise to play the stock market, invest, and save. However, sometimes it can be challenging to know how to do those things. With so many different financial strategies available in the world, how do you know which is best for you? Hiring a professional can help, but with so many different types of professionals available, which one do you need? Should you hire an accountant, a financial planner, an investment adviser, or a stockbroker? In an effort to help you meet your money needs, here is some information about each of these professionals, along with why they may or may not be right for you.
The primary job of an accountant is to make sure that your personal and business taxes are done correctly. If you own a business, have recently had a life event (birth of a child, marriage, divorce), or have made a large purchase such as buying a house, you may need an accountant. In addition to taxes, many accountants work throughout the year to help businesses stay on top of their income and expenses. Help with a tax return could cost anywhere from $100-$200 while hiring an accountant to help throughout the year will be based on an hourly rate.
Financial planners are the big picture people of money. These professionals help you to take appropriate steps now so that in the future you will be where you want to be. Financial planners are generally paid around $200-$300 an hour for consultations. If you are going to keep one on hand for help over time, they will likely charge you an upfront cost and then a retainer.
Investment advisors are professionals who can help to make your money work for you. Instead of just sitting in a bank, investing your money can help it to grow over time with the potential for big returns. Investment advisors are often paid a yearly salary based on how much money they are responsible for investing. For example, If they are working to invest $30,000, a 1% fee would be $3,000 a year.
In conclusion, the professional you choose to hire should directly reflect what your long-term goals are for your money. Make a plan, stick with it, and hire a professional to keep you on track.