Are you at a point in your financial journey where you’re considering whether it’s time to seek the guidance of a financial planner? Making decisions about your money can be overwhelming. Planning for your future is challenging, especially if you are working for financial freedom or FIRE (Financial Independence, Retire Early). And that’s where a qualified financial planner can provide invaluable assistance.
In this blog, I’ll share my experience working with a financial planner. We’ll cover the benefits of working with a fee-only fiduciary financial planner. And, we’ll talk about how to choose the right financial planner based on your age and needs.
So, let’s delve into the world of financial planning and see if it’s the right time for you to work with a financial planner!
The Benefits of Working with a Fee-Only Fiduciary Financial Planner:
When it comes to selecting a financial planner, there are key considerations to keep in mind. Opting for a fee-only fiduciary financial planner offers distinct advantages over those who work on commissions.
First, fee-only, fiduciary financial planners are committed to acting in your best interest. As fiduciaries, they have a legal and ethical duty to prioritize your financial well-being. Their advice is unbiased, transparent, and solely focused on helping you achieve your financial goals. By eliminating potential conflicts of interest that can arise from commission-based compensation, they provide you with objective recommendations tailored to your specific needs.
Second, fee-only financial planners operate on a transparent fee structure. Instead of earning commissions from product sales, they charge fees based on a percentage of assets under management, an hourly rate, or a flat fee for specific services. This clarity ensures that you understand the cost of their services upfront. This helps you to make informed decisions based on the value they provide. My personal preference is paying a flat fee or hourly rate.
My Personal Story:
In my late 20s, I found myself drowning in a sea of debt and desperately seeking a way out. I had recently used all of my savings to buy a fixer-upper old house. I was putting all the repairs on my credit card and then switching to another card whenever I had a better zero percent offer. The weight of debt was stressing me out and I knew I needed help. However, I thought only wealthy people hired financial planners and that I didn’t have enough money to benefit. My girlfriend assured me that her financial planner worked with young women to help them get on the path to financial freedom. That’s when I made the decision to work with a financial planner. This turned out to be an excellent decision!
At my friends’ recommendation, I reached out to Sheila Walker Hartwell of Hartwell Planning in NYC. Sheila is a fee-only financial planner with an excellent reputation. From our first meeting, Sheila showed a genuine passion for helping young businesswomen like me achieve financial freedom. She took the time to listen to my story and understand my financial challenges. Then she crafted a personalized plan tailored to my specific goals in life. I had thought we were only going to talk about facts and figures, but Sheila wanted to know about my hopes and dreams for the future. I talked about wanting to have a house by the sea, finding a husband, and raising a family.
Under Sheila’s guidance, I gradually regained control of my finances. She helped me develop a debt repayment strategy and provided invaluable advice on managing my expenses. Sheila’s expertise and unwavering support gave me the confidence to stay committed to my financial goals, even when obstacles arose.
Over the years, I made remarkable progress as I sold my fixer-upper and re-invested in another property with my husband in England. I paid off all my credit card debts and continued to pay my credit card balance off in full every month as a new discipline. Sheila’s strategies and insights not only helped me become debt-free but also empowered me to build a solid foundation for a financially secure future.
Today, I am financially free, thanks to Sheila’s early guidance and expertise. By getting on the financial freedom path while relatively young, I reached financial freedom sooner than most. But more than that, I’ve gained a newfound sense of confidence and financial literacy that will benefit me for a lifetime. I am grateful for the opportunity to work with Sheila and for the positive impact she has had on my financial journey.
Choosing a Financial Planner Based on Your Age and Needs:
Now that you understand the advantages of working with a fee-only fiduciary financial planner, let’s explore how to choose the right financial planner based on your age and needs.
Young Professionals and Accumulators
If you’re in the early stages of your career and focused on building wealth, seek a financial planner who can help you establish a solid foundation. Look for professionals experienced in budgeting, debt management, and savings strategies. They can guide you in creating a plan to pay off student loans, establish an emergency fund, and start saving for future goals such as homeownership or education.
Mid-Career and Pre-Retirees
As you progress in your career and approach retirement, finding a financial planner with expertise in retirement planning becomes crucial. So, look for professionals who can help you assess your retirement readiness. They will optimize your investment portfolio and develop strategies for tax-efficient retirement income. They should also be adept at coordinating with other professionals, such as estate planning attorneys, to ensure a comprehensive approach to your financial well-being.
Retirees and Empty Nesters
During retirement, the focus shifts from wealth accumulation to managing and preserving your assets while generating sustainable income. If this is you, consider working with a financial planner who specializes in retirement income planning, Social Security optimization, and long-term care planning. They can help you navigate the complexities of retirement withdrawals. They help to ensure your savings last throughout your lifetime and address potential healthcare expenses.
Specialized Needs
Sometimes, you may have specialized financial needs that require a financial planner with specific expertise. For instance, if you’re a business owner, you may benefit from working with a planner who specializes in small business. They understand the intricacies of small business finances, succession planning, and business valuation. Alternatively, if you have complex investment portfolios, a financial planner experienced in high-net-worth individuals may be more suitable to address your unique circumstances.
Working with a trustworthy financial planner helped me achieve my biggest goals and dreams. (The house by the sea, among other things!) By choosing a fee-only fiduciary financial planner, you will have peace of mind knowing that their recommendations are solely focused on your best interests.
Finally, if you find yourself wondering whether it’s time to work with a financial planner, it’s likely a sign that you could benefit from their expertise.
The advantages of partnering with a fee-only fiduciary financial planner are clear. They provide objective advice, transparency, and a commitment to acting in your best interest. Therefore, I wholeheartedly recommend working with a fee-only financial planner. Yes, it may sound expensive, but it is a mere fraction of the cost of working with a commission-based financial planner.
So, take that first step towards financial freedom by creating a plan. Yes, even when you think you don’t have sufficient assets or are too young. Your future self will thank you!
Disclaimer: The information provided in this blog post is for educational purposes only and should not be considered financial advice. It is always recommended to consult with a qualified financial planner or advisor before making any financial decisions.
Resources:
- Financial Planning Association
- National Association of Personal Financial Advisors
- XY Planning Network
- LifeCoach.com’s FIRE (Financial Independence, Retire Early) Course
