I am often asked: What can a Financial Planner do for me?
A good financial planner should be all about YOU , and do at least the following 10 things for you:
1. Develop a good understanding of your life goals and current financial situation.
2. Understand your risk tolerances and risk sensitivity.
3. Develop a savings plan for you - how much to save per year in order to achieve your goals.
4. Develop an allocation of stocks, bonds, and cash that is right for you.
5. Analyze your life, disability, and long term care insurance needs.
6. Help you decide the best time to start taking your Social Security benefits.
7. If retired, minimize your taxes by advising on tax efficient investments and your distribution order from your taxable and tax deferred accounts - the order matters.
8. . Give you investment advice based on probabilities not possibilities. The planner should be able to give you a probability of success not “my feeling is” or “our economist feels”
A good financial planner should be all about YOU , and do at least the following 10 things for you:
1. Develop a good understanding of your life goals and current financial situation.
2. Understand your risk tolerances and risk sensitivity.
3. Develop a savings plan for you - how much to save per year in order to achieve your goals.
4. Develop an allocation of stocks, bonds, and cash that is right for you.
5. Analyze your life, disability, and long term care insurance needs.
6. Help you decide the best time to start taking your Social Security benefits.
7. If retired, minimize your taxes by advising on tax efficient investments and your distribution order from your taxable and tax deferred accounts - the order matters.
8. . Give you investment advice based on probabilities not possibilities. The planner should be able to give you a probability of success not “my feeling is” or “our economist feels”
9. Make you aware of any estate and estate tax issues.
10. Always act in your best interest - a good measure of this is whether the planner is a fee-only planner. Which means that the planner works for a fixed fee and does not receive commissions or fees for any products and/or advice he recommends. You can also ask if your advisor is a CFP (Certified Financial Planner). CFPs have proven themselves academically and are held to a high ethical standard.
In most cases, a good planner will save you hundreds and maybe thousands per year in unnecessary fees, taxes and insurance. In addition, you will get a piece of mind and that is priceless.
10. Always act in your best interest - a good measure of this is whether the planner is a fee-only planner. Which means that the planner works for a fixed fee and does not receive commissions or fees for any products and/or advice he recommends. You can also ask if your advisor is a CFP (Certified Financial Planner). CFPs have proven themselves academically and are held to a high ethical standard.
In most cases, a good planner will save you hundreds and maybe thousands per year in unnecessary fees, taxes and insurance. In addition, you will get a piece of mind and that is priceless.
It's important for wealth management professionals to never forget that they are in the service industry - it's not simply about having great returns. Wealth managers must take into account the client's dreams, aspirations, goals, etc. and plan around those.
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