Your life is complicated. The demands of your career and your family are accelerating.
As the number of financial decisions required to keep you moving forward increases, you realize you’re reaching the limits of your financial knowledge.
Making financial decisions definitely opens new doors for you. However, for each new door opened, several other doors close. In some cases, you only get one shot, and you want to get it right.
We understand your circumstances and have helped hundreds of clients navigate through similar financial and life decisions.
As you begin this journey, here are five things you should expect a financial planner to provide:
1. Financial Education
The financial planning process is an opportunity to increase your financial knowledge and literacy. If you choose someone to work with, part of their process should be teaching you about the following:
- How much you should be saving for…
- Retirement (401k, Roth 401k, IRA, Roth IRA, annuities)
- College Funding (529 Plans, UGMAs, taxable mutual funds)
- Other savings goals
- How much money you should keep as cash reserves at the bank
- The proper usages of debt
- What you should do about debt already incurred, including:
- Home Mortgage
- Student Loans
- Auto Loans
- Credit Cards
- How you can reduce your income taxes
- How much insurance coverage is necessary
- Home / Auto Insurance
- Liability / Umbrella Insurance
- Life Insurance
- Disability Income Insurance
- What estate planning documents you need
- How you can increase your knowledge and understanding about investing
2. Discussion of Multiple Courses of Action
At this stage in your life, you have many competing goals and multiple paths available to get you there. The financial planning process gives you an opportunity to evaluate your options and obtain very important knowledge about the trade-offs involved when choosing a course of action.
3. Short-Term Choices Should Support Long-Term Goals
Prioritization of financial goals is a necessary element of the financial planning process. However, the sequencing of your financial decisions is important and must complement, and be in alignment with, your goals.
4. Customized Planning and Advice
Every household is different. The financial plan you create, and the implementation advice you receive, should be tailored to your specific situation and requirements.
5. Financial Planner Background Check
Before getting started, you should find out more about the person offering to create your financial plan. The good news is your background checking doesn’t need to occur in a vacuum.
To begin with, ignore the title by which they refer to themselves. Titles in the financial services industry tell you virtually nothing about how an individual does business and views their relationship with clients.
Next, they’re most likely registered with FINRA as a financial advisor. FINRA is an excellent source of information about their history in the financial services industry.
Here are a few specific questions to ask individuals you’re considering to create your financial plan:
- What is your FINRA CRD Number?
- Enter their CRD Number into FINRA’s BrokerCheck to get a complete history of the individual’s financial industry experience, the firms they’ve been with, and whether they’ve been disciplined or have any customer complaints.
- In addition to your financial planning fee, how else do you get paid?
- Commissions received for the sale of financial products are a conflict of interest and must be understood by the client and disclosed by the financial services individual.
- Fees paid for assets under management (AUM) are a more transparent method of compensation. Individuals paid in this manner are investment advisor representatives acting in a fiduciary capacity (i.e. placing the client’s interests above their own).
- Fee-only advisors are consultants who get paid a flat fee or an hourly rate.
- Are you a Certified Financial Planner® (CFP®)?
- There are many designations used by individuals in the financial services industry, and they all demonstrate a commitment to learning. However, the CFP® designation is the most rigorous program and covers the broadest range of financial planning topics.
- How much experience do you have working with people like us?
- What will an engagement with us look like?
Sandene Strategies’ Solutions
We have a long history of helping our clients in the areas discussed above. We’re non-judgmental about people’s situations. Our objective is simply to make a positive contribution by guiding them through our financial planning process.
We’ll listen attentively as you articulate your goals, dreams, and requirements. Then we’ll assemble a team of experienced professionals to create Your 360º Future™ Blueprint. This comprehensive financial plan incorporates the plans you have for your life and empowers your future of growth, purpose, and fulfillment.
Your 360º Future™ Blueprint can be used as a decision-making filter, creating guidelines for your personal financial decisions and actions.
Click here to connect with us and begin your financial planning journey!
Your Future Is Now. Let’s Get To Work!