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Who Needs a Financial Planner? 👪


This article is going to be two things. First, it’s going to be important information that you need to hear. I suspect that every single person reading this uses money, and if you use money, you need to learn how to use it effectively. Second, we want to encourage you to take action and engage with a fiduciary financial planner. It would be awesome if it’s us, but we will be happy for you even if it’s not.

Most people don’t believe they want or need a financial planner. Unfortunately, more than 3 out of 4 American workers are living paycheck to paycheck per a report from CareerBuilder. The simple fact is that we are overwhelmed by finances, but are too proud or scared to admit it. It is a challenging task to look at our income, our bills, and sort out our debts, to say nothing of moving into the world of investing. It’s my opinion that everyone in the world should have a financial advisor (including financial advisors!)

What advantage does a financial planner offer? That’s an excellent question, and one that needs to be answered before you trust someone with your hard-earned money. The first metric you should look at with a financial planner is “Are they going to increase my wealth more than if I just managed my own finances?” In short, the answer is yes. Vanguard, a titan of the financial industry, recently released a study that “Paying a fee for advice and guidance to a professional who uses the tools and tactics described here can add meaningful value compared to the average investor experience, currently advised or not.” The report outlines many of the strategies that a savvy advisor will research and apply to your finances in order to increase the money that remains in your pocket. Advisors should be able to clearly show you how their services have impacted your net worth over time!

Second, advisors are able to take one of the most stressful and anxiety-inducing topics in existence, and carry the burden for you. Per this article, “more than 1,000 U.S. adults and found that, while a whopping 85 percent say they "sometimes" feel stressed about money, a full 30 percent say they're "constantly" stressed about their finances.” When you take a step back and look at the problem, it becomes much more clear. If I had a car that wouldn’t start, it would be incredibly stressful for me. That’s because I know almost nothing about cars. In the same way, people worry about finances because they are a complex topic that you should seek expert advice on. However, most people blindly wander through a maze of numbers and complex products just hoping for the best. If you want to escape the labyrinth and feel like you’re making progress toward the life you want, you need to talk to a professional!

Finally, you need to consider that your most precious resource is time. We can earn almost anything we want in this world, but nothing will give us more time with the ones we love. If you’d like to spend years learning the intricacies of tax strategy, investment optimization, portfolio management, and retirement planning, then you are certainly welcome to. My guess is that you would rather spend that time calling your parents, dating your spouse, playing with your children, and pursuing your dreams. If that’s what you want out of life, then the best time to start is now.