Unlock Your Future With a Financial Planning Specialist
Have you ever experienced stress or anxiety related to your financial situation and money? You're not alone. According to the Capital One Mind Over Money Survey, a stunning 77% of Americans feel anxious about their financial position, as reported by CNBC.
The solution may lie in working with a financial planning specialist. What exactly is a financial planning specialist, how can they benefit you, and how does the process unfold?
In this article, we will unveil answers to all of these questions and more. Read on to learn about how you can benefit from investment management services and the expertise of a financial planning specialist.
What Does a Financial Planning Specialist Do?
The responsibilities of a financial planning specialist are far-reaching. Here are some of the main functions of the role:
Investment Management Services
When the market becomes tumultuous, your financial advisor can ease your portfolio through choppy waters. Financial planning specialists have the knowledge and insight to make informed decisions to align with your portfolio goals.
For instance, if you want to open a 529 account to begin saving for your children's education, it may be more pertinent to invest aggressively. The money will have higher returns, and you will have the time to weather the ups and downs of the market.
Retirement Planning
The prospect of saving for retirement can seem daunting, especially if you feel like you are behind on your contributions. It can be difficult to predict how much you will need, the annual return of your investments, and other factors that are out of your control.
Your financial planning specialist can walk you through various retirement accounts and explain the benefits and drawbacks of each. They can also help you evaluate how much you should contribute based on your target retirement age and ideal retirement income.
Trust and Estate Planning
The more assets you gain, the more complex your estate plans become. A good financial planning specialist can assist you with organizing your assets into a trust or multiple trusts, depending on factors such as beneficiaries and tax advantages.
Annual fiduciary accounting may be of benefit as well. Reviewing the transactions and the entirety of your trust holdings can allow you to evaluate your financial position and goals.
Tax Strategies
In regard to taxes, the more you make, the more they take. However, there are many ways to mitigate the financial blows when tax season comes around.
Your financial planning specialist can evaluate your assets and assist you with tax strategies to save money on your tax bill. They may be able to see potential for write-offs or other loopholes that you missed.
Benefits of Working With a Financial Planning Specialist
If you are well-versed in finances or think your management skills are sufficient, you may be wondering about the value of financial planning. Here are some of the key benefits of working with a professional to manage your finances:
A Holistic Approach to Finances
When you find yourself bogged down in the details, it can be difficult to see the full picture. Rather than stressing over a single transaction or accounting for every cent, you can take a step back and see your finances from a completely different viewpoint.
Holistic financial management means considering how your finances align with your values and goals. It covers everything from building an emergency fund to estate planning.
A Customized Approach
You may be wondering if a financial expert is worth the time and money when there are endless resources available for free. The internet holds a wealth of financial knowledge, and books on investing and finance are also easily accessible.
However, these have one key factor missing: a customized approach. It can be difficult to figure out if certain guidance applies to your specific financial situation. Your financial planning specialist will create a plan that is specifically tailored to your needs and goals.
Objective and Educated Advice
Money is a huge part of life, and therefore, can be associated with strong emotions. From the joy of receiving an unexpected windfall to the devastation of a large expense, these ups and downs may lead to rash financial decisions.
It is beneficial to have access to someone with an objective point of view. A financial planner is removed from any emotion regarding your financial situation. They can evaluate your finances from a rational and logical perspective, factoring in their education and experience as well.
Personalized Strategies for Long-Term Wealth Building
There is no cookie-cutter method for building wealth. Relying on generic advice can certainly help you to cultivate positive strategies, but it may not take you far enough to meet your long-term financial goals.
Your financial advisor will consider factors such as:
Existing assets, such as investment accounts and property
Liabilities, such as mortgage and other debts
Monthly and annual income
Current portfolio diversification
Time Savings
Checking on your investments can be time-consuming, and going over the transactions in your bank statements can be a hassle. What would you do with those hours if you could get them back? A financial planning specialist can evaluate your financial position and make adjustments and recommendations when necessary.
The Financial Planning Process
Every financial plan is different, but here is a general idea of what you can expect from working with a financial planning specialist:
Establish the Relationship: Meeting for the first time, you will get to know one another, and your financial planning specialist may ask about your financial habits and overarching goals.
Go Over Financial Data: Complete transparency with your financial situation is essential to maximize the benefit of a financial planner.
Set Short-Term and Long-Term Goals: Make a list of financial goals you would like to accomplish in the near future, as well as future aspirations, such as retirement.
Develop a Financial Plan: You and your financial planning specialist will put together a plan that considers your current financial position, your goals, and cash flow.
Implement the Plan: Set up necessary accounts, automate payments, and move investments to appropriately execute your financial plan.
Adjust the Plan Over Time: Over the years, your plan may need to be tweaked due to factors such as market conditions, changing income or expenses, and adjustments of financial goals.
How to Find a Financial Planning Specialist
The process of finding a financial planning specialist may seem daunting. After all, trusting another party to handle your finances and access sensitive information is intimidating. This is why it is vital to do thorough research and follow a process when searching for a professional to work with.
Seek Personal Recommendations
Ask friends and family if they have any recommendations for financial planners. Not only can you rely on them as a trusted party, but the professional may also be familiar with your family's financial history, which can benefit you when considering different aspects of your situation.
Look at Online Reviews
Lacking personalized recommendations, the internet is a fantastic resource for finding qualified professionals when used correctly. Only rely on verified review sites and read both positive and negative reviews carefully.
Observe the rating of the professional and also how many reviews they have. A financial planning specialist may have a five-star rating overall, but only a handful of reviews. Meanwhile, a seasoned specialist may have a slightly lower rating, but hundreds of trusted clients.
Furthermore, keep an eye out for fake reviews. Look for:
Grammatical and spelling errors
Overly positive language
Generic commentary
Many sites contain a "Verified User" designation, or something similar, to distinguish users who have submitted proof that they purchased a product or service. These reviews tend to hold more weight than those without the designation.
Meet With Multiple Experts
Although it may be tempting to hire the first financial planning specialist you meet with, it is important to keep an open mind. Some factors to consider include:
Availability: How much time and resources will they devote to your financial planning on a weekly, monthly, or annual basis?
Cost: Do they charge hourly rates, a flat fee, a retainer, or take a percentage of your portfolio as payment?
Field of Expertise: What types of financial situations do they typically handle?
Credentials: Do they have relevant credentials, such as Certified Financial Planner (CFP) or Certified Public Accountant (CPA)?
Keep a spreadsheet or list for comparison purposes. With all of the information laid out in a simpler format, it can be easier to evaluate the pros and cons of each and make an informed decision.
Plan for Success With a Financial Planning Specialist
You should not have to stress or worry about your financial future. By working with a financial planning specialist, you can reap the benefits of expert advice and feel confident and secure in your wealth growth strategies.
At Phillip James Financial, we specialize in investment management strategies that help our clients maximize growth potential while maintaining financial stability. Our team has decades of experience in accounting, bookkeeping, and certified financial planning.
Are you ready to begin your journey with a personal finance advisor? Reach out today to learn more about our services.