All Things Financial Planning Blog

Maybe you’ve just hired a financial planner or you’re thinking about hiring one.  I bet you’re excited, scared, anxious, uncertain and hopeful.  You’re about to craft a plan for your future, but how can you be sure that you stay focused on your financial plan, and not be distracted by the noise of Wall Street, your neighbors, co-workers and the media’s talking heads?   

Here are three ideas that will help you and you planner stay focused on your goals.   

DISCOVER. Make sure that you are regularly asked questions.  That’s right whenever you visit with your financial planner, whether it’s the first appointment or a periodic review, always get the sense that your planner wants to learn more about you, your goals and your objectives.  Allow them to dig deeper and ask “Why do you feel that way?” or “Tell me more about that.”  After all, a great planning strategy understands that LIFE HAPPENS.  Financial plans should be fluid and not rigid.  Make sure your financial planner encourages you to think, dream and wonder.

PROTECT YOURSELF. Americans tend to think offense first, and defense second.  I think it’s our competitive spirit and capitalistic nature.  But when it comes to financial planning, playing defense is critical.  Be sure that you continually discuss how you plan to protect your life, your family, your income and your legacy.  Many financial planners call this capital protection.  Generally the solutions for these strategies include insurance related products.  Don’t be scared of them.  Embrace them; but be sure that they specifically address the defensive strategy you wish to protect – and nothing more.

MANAGE YOUR WEALTH. If you believe that your financial planner’s primary skill set is investment planning, then I think you should reconsider the planner you are using.   A great financial planner will always lead a relationship by helping you better organize where everything is and what it’s worth.  If your financial planner is more interested in offering an investment strategy before gathering a clear picture of you, your goals, your net worth and all other moving parts in your life, you should stop and ask – “Do I want a planner or an investment adviser.”   After all, how can a financial planner place your interests first if they don’t have a comprehensive financial snapshot of you? 

A net worth statement and a cash flow statement should be central documents of your planning relationship.  You should be prepared to provide pay stubs, tax returns, investment statements, insurance endorsement pages, wills, trusts, benefit booklets and more to your financial planner.   Be sure your financial planner is in the loop regarding changes in employment status, gifts and/or inheritances you receive and of course, any unexpected large expenses you may incur.  With a well documented net worth and cash flow statement, you can now begin wealth management strategies that align with your goals. 

Building a relationship with a financial planner is a life-long commitment not an impulse purchase.  If you’ve found someone you trust and respect let your planner know it.  If you’re still looking for a competent financial planner consider FPA’s PlannerSearch®.  Be sure to interview more than one planner – because one size doesn’t fit all. 

In my next blog I’ll talk about characteristics to look for in a planner that suits you best.

Marc Freedman, CFP®
President/CEO
Freedman Financial
Peabody, MA