What is a Finacial Planner?

A financial planner is a professional that will give you advice on how you manage your finances. They are someone that will look at the larger picture of wealth building and not just your stock portfolio or just give you general financial tips. You might think that you are financially savvy, but everyone could benefit from having a financial planner. That includes me as the author of this site. I spend more time reading than I do writing.

Types of Financial Planners

In Person Financial Planners (Traditional)

A traditional Finacial planner is someone who is an investment expert, an accountant, or an insurance expert. With these types of wealth managers, you will have a personal relationship with them. These advisors normally cost you more, but you will have one on one personalised guidance from them.

Online Financial Panners

We live in the internet age where content marketing is king, and there are free resources for everyone. Not only that you can find ebooks and download them in seconds. Literally, there are experts who produce videos or write blog posts on everything. All you need to do is look through lists of sites and you can find an online mentor. You can alway come to online investment tips for solid financial tips; however, there are other great resources out there.

What Financial Planners Do For You?

Reaching Finacial Goals

This is the most important thing. Without a financial goal, you won’t have anything to work towards. Your financial goal will be the purpose of your hard work and should be large enough to keep you motivated. Below I listed the 3 most common goals that someone will have. A financial planner has helped someone else achieve these goals. There is a good possibility that they will be able to help you achieve them too.

  1. Education
  2. Buying a Home
  3. Retirement
  4. Replace Your Income
Budgeting your Money

Once you have a goal, you will start to think of ways to make this goal a reality. This could be saving 10% of your income and investing it to hit your retirement goal. The more extreme your goal is, the more discipline you will need to be. For example, there is a blog called Mr. Money Mustache that goes over a man’s pursuit of early retirement.Our point is that you need to know what is necessary to reach your goal. Someone else out there has probably achieved your goal then wrote about it.

Investment Decisions

A financial advisor will help you make investment decisions. One major purpose of our website is to help you learn about the investment options that are available to you. Your investor profile will be a combination of age, lifestyle, and your own personal goals. This is why online investment tips won’t say one investment is better than another. Most investments have a purpose and are suitable for only some people’s risk appetite and investor profile.

Tax Planning and Tax Liability Reduction

Everyone hates paying taxes. A good financial advisor will be able to help you make money, but should also personalize your plan to reduce your tax liabilities. Generally, the higher income tax brackets you are in the more specialised your tax accountant should be. There are completely tax-free choices. An example would be municipal bonds where someone pays no federal tax.

Risk Managment

There are multiple risks that you need to protect (hedge) yourself against. With wealth management, these are what if scenarios. What if I loose my job? Do you need income investments to live off of? What if our farm has a bad year? These are just a few common things that you might need to hedge against and a financial advisor will be able to help you find vulnerabilities.


How To Use This Information

The best way to manage your Finances is to have an in-person financial advisor and find good online mentor to help you along the way. With the online mentor, you only need to invest your time.

The in person advisor should be someone that you can call regularly and ask questions. For your online advisor choose someone you can relate with or someone that will be a good mentor. For this website, we get mostly men. Most of the women that I know love reading posts from famous mommy bloggers. There a blog for everyone online. As an example, you can be extreme with your finances, and live with only 200 items.