Do I Need a Financial Planner?
January 1, 2023- Controlling your money means controlling the components of your financial plan. Estate planning, asset protection, investments, cash flow, debt, and tax planning are all moving parts that need adjusting as life goes on. Many people, with adequate time, interest, or knowledge, can go it alone without professional help, and many people benefit from consulting a financial planner. Here are some things to consider.
When should I talk with a financial planner?
Just as searching for symptoms on Google is no replacement for going to the doctor, many people can gain a lot by talking with a financial planner. Seek help when:
You are overwhelmed with financial decisions and how they affect each other.
You are unsure how to manage investments for the long haul when there are wild swings in capital markets.
You are skeptical because of past financial advice you have received.
You have an increasingly complex financial situation.
You expect a family event (retirement, marriage, divorce, birth, death, sale of a business).
You would like a second opinion on what you are doing or what someone has suggested you do.
How can I find a financial planner I can trust?
Unfortunately, the financial industry and financial regulations have complicated the process of finding competent, professional advice. It can be challenging to understand who is qualified to help you and who is obligated to act on your behalf. The way our industry is paid is fraught with conflicts of interest, making it sometimes difficult to know who is on your side. The industry’s alphabet soup of certifications is confusing at best. We believe consumers are best served by working with a financial planner who is:
A CERTIFIED FINANCIAL PLANNER™
In a FEE-ONLY firm (paid directly by you - if someone else is paying the advisor, you are not the customer)
Regulated as a FIDUCIARY, a “registered investment advisor,” legally obligated to put your interests first
Here are two simple ways to find the right financial planner for you:
If you are evaluating a financial advisor, ask the advisor to agree to THE FIDUCIARY OATH. This oath, written by an industry association, requires the planner to “always act in good faith and with candor, be proactive in disclosing any conflicts of interest that may impact a client, and not accept any referral fees or compensation contingent upon the purchase or sale of a financial product.”
Search one of several professional groups whose members hold to these standards. Here are three that have a website search function of members:
National Association of Personal Financial Advisors (NAPFA) has stringent membership and educational requirements for its members. Timberchase Financial is proud to hold a membership in this association.
XY Planning Network consists mostly of younger planners serving younger clients.
Garrett Planning Network is a group of experienced advisors with a focus on hourly and limited engagements.
Financial Planner, Financial Advisor or Wealth Manager?
We have been deliberate here in using the titles FINANCIAL PLANNER rather than FINANCIAL ADVISOR or WEALTH MANAGER. “Financial Advisor” and “Wealth Manager” can mean different things to different people, and do not indicate what the person does for the client. Recently, at a car dealership, I spent time with a genuinely nice “transportation advisor.” While he was helpful, he had an incentive that was different than mine. If you are paying for financial advice, you should be getting an answer that is in your best interest.
If you would like a second opinion about what you are considering, please contact us.
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Information presented is for educational purposes only and is not personalized investment, financial, legal, tax, or accounting advice. Nothing on this website should be interpreted to state or imply that past performance is an indication of future performance. All investments involve risk and unless otherwise stated are not guaranteed. Be sure to consult with tax, legal, accounting, and financial professionals about your specific situation before implementing any planning strategies. Investment Advisory Services offered through Timberchase Financial, LLC, a Registered Investment Adviser with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training.