When Does it Make Sense to Work with a Financial Planner?

Our topic on this episode of the Ready for Retirement podcast is about understanding when it makes sense to work with a financial planner.

Questions answered: Should I work with a financial planner? When is the best time to hire a financial planner? What are the different ways financial planners work with clients? When shouldn’t I hire a financial planner? What is the best approach for my individual situation? 

Are you ready to start focusing on the things that truly matter when it comes to your financial future?

Schedule Your Initial Consultation Call Here

Key Points

• About James – ​​James Conole – Root Financial Partners 
• Why shouldn’t you hire a financial planner?
  • Don’t just hire a planner because they’re a Certified Financial Planner.
  • Don’t just hire a planner because they’re a Fiduciary.
    • These should be the minimum of what your financial planner holds, but they don’t mean you should necessarily work with them.
• Why should you hire a financial planner?
  • Competence 
    • You want a financial planner who is an expert in broad financial planning such as tax planning, investment planning, retirement planning, estate planning, or specializes in stock compensation, business transition, etc.
    • Do they have competence above and beyond what you can do as an individual who isn’t an expert?
    • Ideal Personality Traits
      • Intellectual Curiosity
        • Is this person intellectually curious? Are they continuing to search for robust solutions?
      • The best advisors are life-long learners.
    • Passion
      • Is your planner passionate and excited to meet with you?
  • Convenience
    • Do you have the time to be your own financial planner or would you rather be doing something else? 
      • It’s easy to use Google for Roth IRA limits, Social Security limits, etc and if that’s all you are looking for, you don’t need an advisor.
        • Google can’t combine the nuances of how investments, Social Security, taxes, etc. work together so you have a complete understanding of your financial situation.
      • Google is great to answer questions, but they are questions in a Vacuum and Google doesn’t know what else is going on in your financial life.
      • How does each decision impact your overall financial life? Are you doing a through review to understand how everything impacts other parts of your financial plan?
      • If you don’t find this is the greatest use of your time or if there’s something else you’d rather be doing, this is where a financial planner comes in to be able to give you wisdom, not just information, and how that applies to your overall situation.
    • Coordination
      • A good financial planner coordinates with the other professionals in your circle.
      • They talk with your tax planner and your estate planner to better understand your situation and ensure everything is being properly taken care of.
      • This coordination allows you to not communicate the intricacies of your financial life to each professional taking care of your finances. 
  • Coaching
    • Information is everywhere, but it’s not enough on it’s own.
      • Coaching is working with someone to accomplish their goals by serving as a coach/partner.
      • Emotions/biases/stress all contribute to the way we view finances.
      • A quality financial planner understands their client and provides feedback.
    • Oftentimes finance is looked at as a “right or wrong” in many cases.
      • It’s not always about what’s right and wrong.
      • It’s about understanding human nature and knowing the clients hopes, dreams, fears, to be able to provide the coaching that is most beneficial.
      • Picasso: “Learn the rules like a pro so you can break them like an artist.”
        • A good financial planner may be an expert, but it’s the planner that knows how to break them down and apply them effectively that will provide the most benefit to their clients.
    • Honesty
      • A good advisor is going to set boundaries around what is and what isn’t in our control.
      • A good advisor is going to communicate the truth about what is and what isn’t in our control.
      • A good advisor knows the importance of helping to navigate clients to understand when it’s most appropriate to use discipline.  
    • When markets are fluctuating and emotions are high, it can seem safe to go to cash, but is that the right move for your goals? 
      • It depends! It depends on many factors, but primarily the time-horizon of your goals and it’s up to your financial planner to understand what’s most important to you so you can reach those goals.
      • A good advisor gives a trusted second opinion.
  • Core Values
    • Money’s only purpose is to serve as a tool to realize what’s actually most important.
      • Time with family and friends, giving, volunteering, etc.
      • Does your advisor help you understand your core values?
        • It may be something you haven’t thought of yourself.
    • Advisors that focus solely on building your wealth are missing the point.
      • It’s up to the advisor to understand your hopes and dreams and view how your finances can support you.
    • Perspective & Empathy
      • An empathetic advisor is going to put them in your shoes so they can alleviate fears and deliver the most effective solutions.
    • Quiet
      • The advisor should listen more than they talk and deliver solutions based upon that feedback.
      • Active listening allows an advisor to deliver the convenience of a strategy for you. 
• Overall
  • Competence, Convenience, Coaching & Core Values.
    • You work with an advisor because they exhibit these traits and you believe there is significant value to be had.
• Working With James
  • Step 1 – Schedule a call directly with James (not someone from my office): Schedule Your Initial Consultation Call Here
  • Step 2 – We will go over your unique situation and the services we provide.
  • Step 3 – If it makes sense, we’ll walk through a custom plan to ensure you’re making the most of your finances so you have the peace of mind knowing you’re doing everything you can.
    • There is no cost to go through this process, it’s your chance to understand what value would be added before ever paying a dime. 

Timestamps

1:00 – Listener Question

2:22 – When Not To Hire A Financial Planner

3:48 – Best Traits of a Financial Planner

5:43 – When Should I Hire An Expert?

6:51 – Google Isn’t A Financial Planner

9:06 – Coordination With Your Other Professionals

11:33 – Understanding You, First

13:56 – Objective Advice For Realistic Expectations

16:52 – Coaching & Trust

21:00 – Competence, Convenience, Coaching, Core Values

22:00 – Working With James

Resources:

Submit your question:

Subscribe to the show

Work with James