Do you need a financial planner? Unless you work in a job where you’re required to evaluate investment strategies and know how to put together a successful portfolio, the answer is likely yes. There is a common misconception that you must be a millionaire before you need help with money management. When in reality, the opposite is often true: working with someone who really understands how to use financial planning tools is the best way to become a millionaire. Ideally, everyone should have a financial planner.
A big part of building a solid investment strategy is simply knowing the options. The issue for a lot of people is that they don’t understand how investing works, and the thought of learning it is intimidating. Considering that most of us don’t fix our own cars or install plumbing in our homes, why would we expect ourselves to know how to construct a high-performing retirement account?
Money management done right
There are a number of reasons to hire someone to advise you on managing money. Even if you can learn how to budget and invest your income, finding extra time in the day to do so is unrealistic. Or perhaps you just don’t want to deal with money on top of all your other work/life responsibilities. And there are huge benefits associated with hiring an expert.
You already know you can put your money into a saving’s account where it will be safe from losses yet only net a nominal amount of interest. If the end goal is having your money earn more money, then you’re going to need to invest in something with a higher yield and there are a lot of choices. An experienced financial planner can guide you through the options, along with advising you on other important matters such as paying down debt, creating a monthly budget and putting aside funds for big purchases.
Getting an outside opinion
Meeting financial goals while managing your own money is possible but it comes with potential pitfalls. No matter how much you learn about investing, you’re still not going to be on par with the pros on Wall Street, and a single bad decision can have big consequences. Why not work with a Certified Financial Planner (CFP®), whose job it is to perform complicated financial analysis every day?
When it comes to choosing an expert, make sure they are a fee-only advisor who does not charge commissions and who adheres to a fiduciary standard (holds your interest over their own). A good financial advisor should also be a financial planner who helps you plan all of your finances, not just your investments. And your financial advisor should work together with your CPA and other advisors such as your attorney or your banker.
The CFP® practitioners at Blankinship & Foster are fee-only and we take our fiduciary commitment seriously. Our number one goal is to help you get the most out of your money. Call today for a free consultation and let us help you build a financial strategy that serves you today and well into the future.