What you should know about working with a financial planner.
You might think that financial planners only work with the rich. Or, you may expect that they’re just developing investment strategies for clients. However, financial planners are actually versatile in their offerings and, no you don’t already need to have millions of dollars to work with one.
Anyone can benefit from speaking with a financial planner. And in fact, getting advice from a financial planner sooner rather than later can make a huge difference.
What can a financial planner help with?
Financial planners can typically help with a variety of concerns.
Financial planners help people who need a strategy to pay off loans or need ways to generate income. They can also help young families settling down, mid-life individuals who need help maximizing their retirement savings and those who need assistance with tax planning and estate planning. But their services don’t stop there. Here are some other areas where a financial planner can be of assistance:
Income management and debt
Guidance on student loans, mortgages and auto loans
Retirement planning strategies
Understanding Social Security benefits and when to take it
Veteran benefits
Opening IRA’s
Risk exposure and insurance planning
Long-term care insurance
Investment recommendations
Proper asset allocation
Rebalancing your portfolio Saving for your children’s future Developing college funding strategies Estate planning Minimizing your tax bill
FP’s can play a role in providing guidance with what’s known as “triggering events,” — events that can result in significant changes in income or wealth. Triggering events can include, but aren’t limited to, large inheritances, divorce and death.
Some planners specialize in employee benefits, getting married, getting divorced, bankruptcy, home buying and more.
A great place to begin is FINRA's Financial Industry Regulatory Authority BrokerCheck
Another option is to use the Securities Exchange Commissions (IAPD The Investment Adviser Public Disclosure website https://adviserinfo.sec.gov/Fim/281450 to find a professional in your state.
When should you think about speaking to a financial planner?
Working with a financial planner can be a big and exciting step. Although, not everyone needs to have an ongoing, regular relationship with a financial planner, there are some instances where it might make sense to get a professional’s input.
Perhaps everyone may not need to hire a financial advisor, but everyone could benefit from consulting one upfront to see which services may apply to them. Most planners offer free
consults. Until you actually sit down and have an initial conversation you’re just guessing what your next step should be.
Schedule your free consultation now!
You need a new perspective on your finances
Maybe you already have an idea of what your next move should be, or how to best manage the rest of your finances. Or, maybe money management just feels really confusing and overwhelming. If you aren’t totally confident or wonder if there are better next steps for you to take, you might consider consulting a financial planner. Their expertise may be able to provide an option you haven’t yet considered.
After taking a bird’s eye view of your financial profile they may be able to tell you if there’s something else you should be prioritizing. Sometimes the best next move a person can make with their finances is to do nothing and maintain their current actions. A FP would be able to clarify if this is really the best thing for their client.
A triggering event has occurred or will occur soon
Triggering events, such as marriage, death, divorce and receiving a large inheritance, can have a large impact on how you manage your money — and sometimes even the progress you’re making toward your financial goals.
As these events occur, you may think about getting a professional’s opinion on how an influx or a decrease in your wealth can impact what your next financial move should be. Plus, as you move through different phases of life, you start to focus on different areas of your finances.
For example, maybe you go through a divorce right as your kids are about to begin college — a financial planner can help you create a plan for funding your kid’s tuition.
Nearing retirement
Of course, you can also see a financial planner if you need help getting started with saving for retirement. But if you’re going to retire soon, it could be helpful to check in with a professional to make a plan for how you’re going to make your money last the rest of your life.
This can feel like a weight off your shoulders even if you’ve been using a robo-advisor like to make investments that are just right for your risk tolerance and goals. A FP can help you better analyze your lifestyle expenses and your savings so you can decide on a safe amount of money to withdraw each year.
A financial planner can also help you spot any holes in your retirement plan. Like, maybe you’ll need to save a little extra money — which could mean having to remain in the workforce for an extra few years.
The Bottom line
While not everyone needs an ongoing relationship with a certified financial planner, pretty much everyone can benefit from having a consultation — and some initial input — with a FP. Especially since there are a variety of concerns that a financial professional can assist with.
