HOW TO WORK WITH A FINANCIAL PLANNER
How to Work with a Financial Planner
As a Financial Planner, I am often asked: How much money do I need to work with you OR do you require a minimum amount of assets? It’s easy to understand why that question is asked so often. Traditionally, the financial services industry has placed a greater emphasis on what you have now vs. what you are trying to build and/or will have in the future.
Often times, there is less focus on strategic and goals based planning. Well, this is changing. True financial planning is about helping individuals make better financial decisions to achieve their personal financial goals. This includes creating a better understanding of employee benefits, investment strategies, estate planning, risk management, tax planning, and of course, personal and financial planning.
A Certified Financial Planner® helps people identify and prioritize their goals; create roadmaps and blueprints to guide them and check in with them to monitor their progress. In short, financial planners act as your personal financial consultant. Job One is placing our client’s interests first.
So, let me break it down in a language that might help to explain the differences in the professions and their expertise:
Financial Advisor: broad based, usually assigned by a company/corporate partner. Helps individuals identify assets and assigns specific assets to goals.
Investment Advisor: Expertise in Investments: Risk Profiling, Investment policy Statements, Asset Allocation Recommendations, Risk Profiling and Rebalancing Strategies.
Certified Financial Planner (CFP®): Includes all of the above – Financial and Investment Advisor roles PLUS Strategic and Goals based planning – including tax and estate planning, investments, risk management/protection strategies, retirement and lifestyle management.
When it's all said and done, you'll need to determine what platform best fits your needs. All of the above mentioned are professionals, who have met certain levels of training and must complete specific continuing educational requirements. What’s most important is what you need and how the financial professional will work with you.