Everyone is anxious around money to some extent. Whether you have a little money, or a lot of money does not really make a difference. But when it comes to seeking help, many people avoid seeking financial advice until necessary.
As financial decisions become more complicated it is far easier to make a mistake. From my perspective, I see more people today procrastinating on making important financial decisions. Ultimately leading to financial anxiety, delay, or indifference.
In this article I seek to provide 3 key concepts around seeking out and accepting financial advice from someone other than a friend or family member. Whether you are a millennial or a baby boomer or someone in between, at every stage of life if we recognize the need for help, we can increase the odds we will make better financial decisions and avoid making predictable financial mistakes.
One may ask, “Why can’t I do all of this on my own? I would respond, it is because “You don’t know what you don’t know!” An experienced financial planner sees many clients who are at all stages of their financial life. Thus, they can use their experience of what has worked and what has not worked to help you arrive at a better outcome. It is not only the earnings one makes over a lifetime that contributes to one’s financial success, it is also to a large extent the avoidance of predictable financial mistakes.
Who to turn to for Financial Advice
A Financial Planner is a professional who helps individuals create a plan to meet long-term and short-term financial goals.
A Financial Planner is a professional who helps individuals create a plan to meet long-term and short-term financial goals. A Financial Advisor is a broader term for those who help manage money including both investments and insurance products. A Wealth Manager is a type of financial advisor who utilizes the spectrum of financial disciplines available such as financial and investment advice, legal or estate planning, accounting and tax services and retirement planning to manage an affluent client’s wealth. Let us place all these labels under the heading of “Financial Coaching”.
A Financial Advisor is a broader term for those who help manage money including both investments and insurance products.
The decision on whether to work with a financial coach can be made based on one’s financial complexity and after an initial meeting without obligation. This initial contact can take place via an introductory phone call or in-person meeting without obligation. At that time, expect to learn about the financial coach’s value proposition. If financial advice is what you seek, the “comprehensive planning process” should include assessing your financial needs, educating you on your financial life choices, making recommendations and a timeline for ongoing review of your financial plan.
A Wealth Manager is a type of financial advisor who utilizes the spectrum of financial disciplines available such as financial and investment advice, legal or estate planning, accounting and tax services and retirement planning to manage an affluent client’s wealth.
Choosing the Right Financial Coach
If comprehensive financial decision making is what you seek, start by looking for a professional with the CFP credentials. The CFP credential stands for “Certified Financial Planner” and is the gold standard for financial professionals engaged in financial planning. In addition, look for senior financial planners who have 10+ years of experience with a support team around them. This team might consist of a client relationship manager, and an associate financial advisor who is always available to the client for follow-up and execution of action items. The senior financial planner’s job is to get to know your unique financial needs and manage the overall strategy to achieve your financial goals. This process covers some important concepts around financial assessment, risk management and education related to your unique circumstances.
Accepting Financial Advice
Everyone today is faced with increasingly complex financial decision making. In addition, financial information has become readily available to anyone who searches the internet. However, random information is useless without the wisdom to know how to use it. Is it any wonder we fear making financial decisions? It is often difficult to distinguish good financial choices from bad financial choices. As a result, many people make financial decisions without knowing the negative impact they will have on other areas of their financial lives until it is often too late to correct them.
Seek out a qualified and experienced financial coach/planner to assist you in making your financial decisions. The results may lead to reducing your anxiety around making financial decisions and ultimately improve your overall financial well-being.