In this era of DIY, we’ve grown accustomed to doing professional level work on our own. Whether that’s concocting chef-worthy weeknight meals or renovating our homes, as long as we have Pinterest and YouTube we’re confident that we can conquer almost any task with a little time and effort.
While there is certainly some merit to doing things on your own, when it comes to something as important as your finances — where your money and future are at stake, it helps to have guidance from an expert.
The challenge is, a large number of people are uncomfortable seeking out financial guidance largely due to common myths and misconceptions about the financial planning industry.
To help quell some of those fears and misguided notions, we’ve decided to address a number of those myths head-on. Our hope is that by the end, you’ll be more receptive to seeking advice for your own financial future.
Common Myths About Financial Planning
Financial planning is just for the wealthy.
While it is true that there are some financial planners who target wealthy clients, financial planning is for anyone who wants financial guidance so they can achieve the best life possible.
Whether you’re just starting out or you’ve already built a sizeable nest egg, a financial planner can help you organize your finances, set financial goals, and create a strategic plan to reach those goals.
My finances aren’t complicated. I don’t need a professional.
You may not have much in the way of assets, but it is possible that your finances are more complex than you realize (marriage, small children, home ownership, business ownership, employee benefits, retirement, etc.).
A financial planner can offer insight and bring options to your attention that you may not discover on your own. In fact, even if your situation is not very complicated, it never hurts to have a second opinion on your progress.
Financial planners only help with investing.
While investing will likely play a key role in building long-term savings, a good financial planner should be able to help you manage your entire financial world. This can include cash management, insurance, estate planning, and tax planning, among other areas.
Once I hire a financial planner, I don’t need to do anything.
Financial planning is a process that requires input and effort. Financial planners can act as a sounding board and provide accountability, but ultimately it’s up to you to implement and maintain your plan long-term.
Now that we have the misconceptions out of the way, let’s look at a few areas of your life where engaging with a financial planner would prove to be highly beneficial.
Organization – Planners assist you in getting your financial house in order (at both the “macro” level of investments, insurance, estate, taxes, etc., and also the “micro” level of household cash flow).
Accountability – Planners can help you follow through on financial commitments, by working with you to prioritize your goals, show you the steps you need to take, and regularly review your progress towards achieving them.
Objectivity – Planners bring insight from the outside to help you avoid emotionally driven decisions in important money matters, by being available to consult with you at key moments of decision making and doing the research necessary to ensure you have all the information.
Proactivity – Planners work with you to anticipate your life transitions and to be financially prepared for them, by regularly assessing any potential life transitions that might be coming and creating the action plan necessary to address and manage them ahead of time.
Education – Planners can explore what specific knowledge is needed to succeed in your situation, by first thoroughly understanding your situation, then providing the necessary resources to facilitate your decisions, and explaining the options and risks associated with each choice.
Partnership – Planners take the time to clearly understand your background, philosophy, needs, and objectives, work collaboratively with you and on your behalf (with your permission).
If you’re ready to get your finances on track, but need a little help getting started you’re in the right place. At Financial Staples, we’re here to be your trusted guide — helping you balance competing financial priorities and plan for the future.
For more information on the services offered, click here to schedule a 30-minute complimentary consultation.