Financial planning isn’t just for the wealthy. Having
a financial plan increases the odds that you’ll reach
your long-term financial goals, because you have
taken the time to set targets and establish a realistic plan
to reach them.
Depending on your background and goals, you may be
able to do this yourself. But in these financially
unsettled times, many formerly self-directed
investors are feeling the need for some
professional guidance. Or you may be at a
new juncture in life. Perhaps you’ve been
able to handle your investment strategy
just fine, but now you’re about to retire,
and you wonder how much you can
safely withdraw from your investments
each year or where you should be
investing your money for the safest, yet
highest return. If you don’t have the
time or expertise to tackle these tasks
yourself, an objective third party can help you cut
through your confusion and procrastination. As the
saying goes, advice that makes you money – or saves
you money – costs you nothing.
Finding the advisor who best meets your financial needs
is an important education process in itself. Your choices
are many, including Registered Investment Advisors
(RIAs), stockbrokers, representatives from financial
institutions, financial planners, insurance agents,
accountants, and attorneys. Some advisors offer a
combination of skills: a financial planner who is also a
stockbroker, a CPA who is licensed to provide
investment advice. Some firms offer a team of
investment and other financial advisors. Financial
planners (also called financial advisors or financial
consultants) generally look at your
overall financial situation and design
a complete strategy to help you meet
your financial goals. Some may
specialize in a specific type of
financial planning, such as
investment, estate and trust planning,
or retirement planning. Others may
look at the whole picture, not only
providing investment advice but also
offering advice on insurance
coverage, long-term care needs, and
tax, retirement, and estate planning.
Anyone can call him- or h