4 benefits of hiring a financial planner


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Consider a co-pilot facing your financial future.

Key points

  • A financial planner will help you better understand your current situation and get organized.
  • If you’re not sure what to do, a financial planner can help you identify goals and then create a plan to achieve them.
  • A good planner will help you stay on track and track your progress, which are key steps in the planning process.

Whether you have a complex situation or just a few questions to ask, hiring an expert is a great way for many Americans to achieve financial peace of mind. Hiring a financial planner has a myriad of benefits. Keep reading to learn more.

1. Understand your situation

When it comes to personal finance, many Americans don’t know what they don’t know. And if you think your finances are healthier than they really are, you could be in for a rude awakening.

The first step a financial planner will take when working with you is fact finding, so be prepared by being organized. A planner can request anything from three years of tax returns to estate planning documents. With this information, the planner will assess your situation and develop recommendations based on your goals, keeping you informed throughout the process.

2. Set goals

But what if you have no financial goals? A financial planner can help you set goals that are both achievable and relevant to your situation.

Typically, planners are happy to give you insight into areas of your financial life that need more attention, such as cash flow management or tax-efficient investments. Then, a planner will help you create goals that will get you on track without becoming overwhelming. A good goal is not only specific, but also achievable and timely.

3. Create an outline

Achieving your goals is more than a matter of willpower, it’s also about bridging the gap between where you are now and the goals you’ve set for yourself along the way. Financial planners are experienced in creating a roadmap, or financial plan, to guide you towards your goals.

Financial plans can take many different forms, but they typically segment your financial situation, identifying your current situation, and your planner’s recommendations for moving you forward. For example, your financial planner may present you with a report divided into categories such as “Cash Flow”, “Retirement”, “Tax Planning”, etc.

In the “Retirement” section, you may see your current retirement account contribution rate and a note from your planner encouraging you to increase that rate by 1% per year, an achievable and timely goal. Your planner will review this information with you, but you will always have a copy of the roadmap. Remember that this plan is subject to change as your life circumstances change, which brings us to the final benefit of hiring a financial planner.

4. Implementation and monitoring

The only guarantee in life is that things won’t stay the same. Your financial plan needs to be flexible enough to roll with the punches, and a financial planner can help you get on top of your situation.

Implementing your plan isn’t always as simple as following your financial planner’s instructions. More often than not, the goals set out above need to be modified or adjusted, which your planner will have experienced. When things change, your planner should monitor your situation and adjust the plan accordingly. Typically, planners meet with their clients once a year, or even quarterly, to check and update.

Working with a financial planner means more than just developing a one-time plan. Planners will work not only to develop an initial plan, but to refine that plan as your financial situation changes. Remember that your planner will act as a co-pilot, so an annual or semi-annual review is your chance to check your finances regularly.

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