Financial planners advise people on how to best invest, grow or save their money.
They will help you with specific retirement financial goals – for example, buying a house, enjoying yourself such as vacations or hobbies, and making sure you never run out of money – giving you an overview of your money and your assets. Some financial planners consult on a range of matters; others specialize on one thing such as estates or retirement planning.
Don’t confuse financial planners with stockbrokers – these are people who trade stocks. Financial planners are not accountants either, but a qualified retirement planner should be able to refer you to qualified professionals to help you reach your retirement planning goals. They will all work together to manage your wealth the most effectively.
Everything you need to know up front
Almost anyone can hang out a shingle as a planner, but not everyone can be an expert. What you need to look for is the credentials of the Financial Planner. A qualified financial planner has passed a serious tests about the specifics and details of personal finance. They will also have vast experience helping others in your same situation.
Financial planners have to commit to continuing education on financial planning to maintain the designation. Therefore, researching their credentials can tell you that this is a prospective financial planner who can give you a useful advice.
Still, even those who pass the exams can come up short on credibility. As with everything pertaining to money, you should carefully choose the planner. Ask to meet with them in person and have a discussion on achieving your financial goals and any concerns that you have.
How financial planners earn money
Typically, financial planners either charge hourly or flat rates or earn money from commissions. A commission is a fee paid when someone sells or buys a stock or any other investment. You may want to avoid these types of advisers.
Planners who work on commission may push a certain insurance package or mutual fund that may not be in your best interest. These planners may not be the most trusted source of advice because of the incentives they receive from certain products.
More and more financial planners make money when you pay a fee for their services. These are independent planners who don’t get money from life insurers or other companies.
For instance, you could pay a flat fee, for a financial plan, or you can pay an annual fee, let’s say a percentage of all assets – such as retirement, investment, and other accounts – they are taking care of for you. Some financial planners also charge by the hours, similar to lawyers.
Benefits of using a financial planner
Financial planners can help you stay disciplined about your financial goals. They will make the moves for you, or tell you what to do to help you accomplish your financial goals.
Procrastination is a common cause of different money problems in retirement, and it leads to unrealized potential, so it is worth it to have a professional helping you to stay on track with our finances.
For some people, it sounds crazy to give a person a percentage of their annual assets to help them, but you get many benefits related to personal finance.
The price becomes more understood when you consider that you are hiring a financial planner to establish a better retirement, choose the right mortgage or save for your child’s college. Set your financial goals and make them real with the help of a qualified financial planner.
Here’s what to do now
Calvert Investment Council professionals can help you put a comprehensive retirement plan in place to help you achieve your financial goals. Contact us today to schedule a meeting, so that we can discuss these strategies with you. Call 410-435-3270 or click here to request online.