What a Financial Planner Can Do For You

Financial planner. Financial advisor. Investment advisor. Investment manager. You may be wondering what they are and how they’re different. And most of all, you may be wondering what they can do for you and if you should have one. To many, the titles may be interchangeable. In reality, they are not. Each actually plays a different role. An Investment manager typically manages assets in an investment portfolio. An investment advisor typically provides investment advice, but doesn’t actually manage the account. A financial advisor typically provides financial advice to a person or business, or perhaps to a retirement plan. A financial planner, does so much more.

WHAT IS FINANCIAL PLANNING?

Financial planning is the long-term process of a financial planner working with you to define your financial goals and then develop and implement a personalized plan to achieve those goals. The reason it’s a long-term process is because your goals will change throughout your life, and those goal changes will necessitate adapting your financial plan and its implementation to those changes.

When you engage financial planning services, the financial planner gathers personal and financial information about you. That gathered information, along with additional data such as realistic assumptions for inflation, investment performance and returns, savings, and spending, are used in various calculations to project if, when, and how you’ll meet your financial goals. Many questions you have will get answered, including:

• What is the probability I’ll meet my goals?
• When is the likelihood I’ll achieve my goals?
• What changes do I need to make to achieve my goals?

Your goals can be anything from wanting to buy a house to wanting to start your own business to making sure you don’t run out of money in retirement, and anything in between and outside.

WHAT A FINANCIAL PLANNER DOES

Hiring the right professional starts with understanding what financial planning is.

There are numerous ways a financial planner can work with you to achieve no only your financial goals, but your personal ones as well. A financial planner could actually be thought of as more of a life planner.

A financial planner helps organize your finances, manage your budget, and achieve your financial goals as efficiently as possible. A financial planner can identify areas you need to work on, such as overspending or poor saving habits. They can take out the guesswork of how much you need to save to be on track for retirement and help you figure out what types of accounts you should be putting that money into. Financial advisors can help you navigate complex financial matters such as taxes, estate planning, and paying down debt, as well as making sure you maintain an adequate emergency fund.

A good financial planner will listen to you to learn what’s important to you, and can help improve the quality of the financial decisions you make. Hiring a financial planner means you have an expert at your disposal who can give you informed and helpful advice on how to manage one of the most vital aspects of your life. A good financial planner will give you advice and recommendations regarding many different areas, including:

• Determining short- and long-term goals
• What you need to do differently with your finances
• Establishing and maintaining an emergency fund
• Budgeting and saving
• Types of retirement accounts to use and how much money to put in them
• How best to utilize benefits offered by your employer
• The type of mortgage you should have
• Mortgage payoff and/or refinance options
• Insurance options
• Tax optimization and planning
• Required rate of return from your investments to achieve your goals
• Risk tolerance assessment
• Selecting investment account types
• Identifying appropriate asset allocation
• Managing and eliminating debt
• Savings for your child’s college education
• When to begin receiving Social Security benefits
• Estate planning
• Business planning

It doesn’t stop there. Any questions you have regarding your finances or anything that could affect your finances and retirement are questions that a good financial planner can answer or help you answer.

A financial planner can also act as your investment advisor and investment manager. They may give you investment advice, helping you make the best decisions for those assets based on your personal situation, as well as manage your investment portfolio for you so you don’t have to worry about handling that complicated task yourself.

A financial planner’s goal is to ensure you're financially secure not just 5 or 10 or 20 years down the road, but all the way through your retirement, for the rest of your life. That means a financial planner will make sure you're not missing any opportunities now that will affect your future.

A good financial planner will provide you with the education and tools you need to plan out your financial future, helping you make the best decisions about your money so that money occupies less space in your life, leaving room for the things you care about most.

DO YOU NEED A FINANCIAL PLANNER?

If you’re struggling to prioritize your financial goals, need a plan for where and how to save, want help with investment management, or you want to be able to spend less time thinking about your money and more time doing what you care about most, you may want to work with a financial planner. If so, feel free to...