You may wonder if a Financial Planner is someone that you really need.
There is, in fact, a simple test.
If you have ever said to yourself " I need help with my finances", you need a Financial Planner.
I told you it was simple. People tend to think that only those with a lot of money
( by whatever standard they have for a lot) need financial services, but a Financial Planner meets needs in the following ways:
1. Your Financial Planner forces you to answer questions you avoid addressing but need to face up to.
What happens if I lose my job? If mom, dad, or my in laws become dependent on me, would helping them be a financial burden? Can I afford to send my kids to college?
2. Your Financial Planner is an objective advisor.
Sure you have family, friends, and coworkers who are only too happy to give you advice, sometimes great, sometimes not so great, but you need someone outside of your circle whose only job is to help you navigate through changing market and economic conditions.
3. Your Financial Planner works with you to develop a financial plan.
If you are planning to travel from Florida to Canada, you would plot out the best route to take and plan your stops. I've done this. Trust me, you need to plan! Similarly, a financial planner helps you to navigate your way to your financial destination using your current finances, including income sources, liquid and illiquid assets, wills, insurance policies, estate and retirement planning documents.
4. Your Financial Planner offers guidance.
You need to know how much you should be saving and investing as you strive to achieve your retirement goals in the time you allotted to get to retirement.
5. Your Financial Planner helps you to simplify your options.
It sometimes feels as if you need a degree in Finance to understand all the many terms, options, and investment vehicles! A planner is able to explain these options and financial instruments such as stocks, bonds, and IRA's etc., and help you to make the best decisions.
6. Your Financial Planner guides you in the types of Insurance that might be right for you.
Do you need Term, Whole, Long Term Care, Disability? Being underinsured is not a good look!
7. Your Financial Planner helps you achieve your financial goals regarding your children.
A planner helps you to budget for your children's educational costs and set up college savings accounts for them.
8. Your Financial Planner handles your portfolio.
Very few people have the time to manage their portfolio, or the discipline to monitor and adjust to the varied conditions in the market. A Financial planner has the time, discipline and knowledge.
9. Your Financial Planner can work with other professionals on your behalf.
They work with your lawyer, CPA, or Investment Broker to protect your assets, reduce your taxes, ( 6 Steps To Financial Independence: Number 3 Will Surprise) and ensure that you have a legacy to pass on to your children and grandchildren.
I highly recommend finding a Financial Planner. Find one who matches your personality and who you actually will enjoy spending an hour or so with. If you are not sure where to start in finding one, go to the websites such as the National Association of Personal Financial Advisors, napfa.org .
A Financial Planner is not just a luxury to be afforded only by the super rich. If you have a source of income, and are interested in making your money work for you, then you need a financial planner. The peace of mind you get in knowing that someone is helping you through the minefield of your finances, is literally priceless.