The problem is two-fold. In a previous show, we noted you need a written financial plan but probably don’t have one because 1) only 1 in 4 do with the absence having drastic effect on, 2) lack of emergency reserves, 3) but plenty of student loan debt, 4) increasing time to save for life’s big goals like buying a house, and 5) then once work years winding to a conclusion too little in retirement

Solution to the absence of a plan is often a financial advisor. But most people don’t consult an advisor or if they do it’s too late to change the trajectory of their lives. Even though people with plans have better financial outcomes with more confidence regardless of how much money they make.

We’ve debated the reasons why people lack plans or advisors so we won’t repeat that today. We also debunked the myth that a financial plan is only about your investments. So, we’ll assume you want financial success at every income level. We’ll assume you want financial confidence. We’ll assume you want to live a rich life regardless of how much money you currently have. So, we’ll assume you want a plan or an advisor that is on track or ahead in saving for retirement, to help you create your financial plan.

Ok – you agree you need an advisor to get and keep this whole financial plan thing off the ground. But how do you pick an advisor and get them to do exactly what you need?

Important to remember – there is NO legal definition for “financial advisor” or “financial planner” – this makes the process more difficult.

• Think about where you are? We used financial GPS – Net Worth & Cash Flow
• Start thinking about goals – SMART – your contribution will be Specific, Relevant, & Time. Your advisor will help you determine the Measurable and Attainable. They’ll also make them SMARTer with a plan to Evaluate progress and build Rewards.
• Research Advisors
  • No salesmen please – Pay for advice, not products. Different ways to pay (project fees, hourly fees, asset management fees, a monthly retainer, hybrid)
  • Fiduciary – Suitable versus Fiduciary or Good Enough versus Best Interest. Your interests first! Disclosure. Transparency. MOST advisors are NOT fiduciaries.
  • Experience & education
  • Designations – ignore most but the CFP is mainline with education, ethics, and disciplinary structure. Others are CPA/PFS and the CFA.
  • Regulatory – lookup the firm and any disciplinary history
• Interview
  • Fit & feel
  • Fees & scope in writing
  • They’re interviewing you too!

 

To explore working with Wayne Firebaugh to fireproof your money, please call 855-WAYNE KNOWS or check out at fireproofyourmoney.com.