What Is A Financial Planner?
A financial planner, also known as a financial consultant, advisor, or analyst, are qualified investment professionals who help individuals or corporations meet their long-term financial objectives.
These advisors use their knowledge and expertise to construct personalized financial plans that may include a suggested investment portfolio, savings, a customized budget, insurance recommendations, and tax strategies.
The term “financial planner” is not legally protected, meaning that anyone can call themselves one without any training whatsoever. Therefore, it’s essential to look into the certifications of your consultant before handing over any accounts.
What Can A Financial planner Do For You?
The financial field has expanded a lot within the past few years, with a shift away from commission-based financial advice and products to a fee-for-service model involving comprehensive planning. Traditionally, financial advisors were paid exclusively through a percentage of the portfolio they managed, so there was an incentive only to take on clients with large portfolios. Fee-only planning eliminates that incentive and allows people of varying income levels to seek financial advice they can afford.
Once you eliminate the idea that financial planning is for the rich, you’ll see that having someone take that weight off you is tremendously helpful.
Jill Schlesinger, Certified Financial Planner Board of Standards Ambassador, said in an interview with the New York Times, “Every neurosis we have, we can express it around money. Someone dealing with your finances can really be transformative — it’s like removing an anvil from your back.”
These advisors know the ins and outs of finance but are also able to give you an unbiased look at your spending. In other words, it’s a lot harder to explain why you spend $8 a day at Starbucks when a stranger asks you about it. It also makes you think about it. There could be a perfectly good reason to spend $8 on Starbucks, but you have to make sure your reason is a good reason.
Having a plan isn’t just for the rich here are a few reasons you may consider getting a financial advisor:
- You experienced a significant life event, such as marriage, kids, or graduation.
Every major life event, no matter how happy or sad, means something for your finances. Navigating the changes after marriage or saving for your kids’ education are all things a financial planner can help you with.
- You can’t find the time to manage your money on your own.
Whether you’re a billionaire or struggling to make ends meet, if you’re not taking a hard look at where your money is going, there are bound to be gaps or flaws. Having someone dedicated to critically looking at your cash flow can help address any issues.
- You’re young and don’t know where to start.
No one comes into this world, knowing how to manage their money it comes with time and experience. If no one taught you how to manage cash flow, investments, or savings, how are you supposed to get started? Working with the right financial planner can help you pay off debt faster and save more for retirement, even if that’s not something on your mind yet.
- You’re simply worried about your finances.
Money can be scary; it can keep you up at night and cause tremendous stress in our lives. Allowing someone else to take on the burden of addressing the plan for making loan payments or saving for your child’s college can really alleviate a lot of your worry.
Whether you’re starting out on your own or have a million dollars in assets, a financial planner can help you navigate the tricky waters of your financial life.
Are you ready to take the next step for your financial plan? Schedule a FREE consultation with me to learn how you can optimize your budget by clicking HERE.
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