Financial Planning Explained: Why all of us could use a financial advisor
By Now most people probably hear that and think it’s a bad thing. But I look at it differently: You’ve got better things to do with your time today than worry about your financial picture. That’s where I come in.
There are a lot of misconceptions out there about what financial planning really is. It’s not picking stocks. It’s not a get-rich-quick scheme. It’s not even just about retirement. Financial planning is looking at all areas of your financial life to see where you’ve been, where you are, and where you want to go, then helping you work your reality toward those goals.
This process isn’t a quick fix, but it can put you on a path that’s beneficial to your family for decades to come. A lot of people hesitate to see a financial planner because they don’t know where to start. Maybe they already have retirement accounts and assume that’s all they need; they’re the average American that’s trying to keep up with their bills, save a little money, and hope for the best. But a financial planner helps you step back from that day-to-day bill paying and come up with a strategy to help you realize your goals.
There are so many people who go through life treating every expense like it’s the entrance to Disneyworld, that the ticket costs what the ticket costs. They often don’t think about whether they could have saved with a coupon, or by being a veteran, or because they live in Florida. They pay their bills, but they can’t tell you whether it’s a good deal, or even whether it’s providing the service they think it does.
You might fund a Roth IRA, but when’s the last time you reviewed your property and casualty insurance? You probably get health insurance from your job, but has your coverage changed in the past five years? How about your premiums? Do you know what they are?
The same thing goes for mortgages, insurance, education expenses, taxes — every facet of your life, even before you get into your investments. That’s what people often miss. They don’t think about how it all ties together, what small tweaks they can do to make improvements to their overall picture.
A financial plan looks at all facets of your financial life and helps you be more efficient with the assets you are the steward of. And a financial planner gets to know you, your habits, and your goals and can learn to anticipate what changes you need to make before you need to make them.
Because you shouldn’t have to be the one listening in on earnings calls or figuring out how to potentially lower tax burdens or comparing life insurance plans. We help to take that off your plate so that you have the freedom and peace of mind to live in the present without worrying about the future.
And plan those summer vacations.
If you or someone you know needs a service like this (and I believe that everyone does), please reach out to us today.
Article by David Smyth, CLTC, Senior Partner at Family Financial Partners — a financial services firm in Lexington, Kentucky.
