8 Signs That Now Is The Time To Hire A Financial Planner
Financial planning tends to receive a lot of attention when things get messy. When markets begin to crash and the world goes through instability, people begin to question the quality of their financial decisions. When is the best time to hire a financial planner?
Topics like asset allocation, risk management, lifestyle planning, and personal finance become hot topics. Financial planning also gains importance when a person approaches retirement or if you have over $10 million to invest,in that case you should check out this special Guide for $10+ Million investors.
However, at Pillar Wealth Management, we believe that financial planning is not an event-driven concept, especially for those with $5 million to $500 million in liquid assets.
To us, financial planning is something that keeps you calm when there is panic all around, helps you through significant transitions in life,keeps you from feeling lost, helps you with retirement, and most importantly, helps you achieve your financial goals.
If you feel that you want to work with a financial planner, either because you are facing plenty of questions, do not have enough knowledge or expertise in specific areas, or simply do not have the time to become an expert, thengaining more insights about financial planning is a good first step.
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It will allow you to answer important questions like when is it time to hire a financial planner near me, how much do financial planner cost, what benefits can you expect from hiring financial planner, and how to find the best financial planner near me.
In this article, we will discuss all of the above questions in detail so that you can make smart choices. Let’s begin!
When is it time to hire a financial planner near me?
If you have just graduated from college and are about to begin your first real job, then you do not have much to worry about. All you have to do is pay your rent, buy groceries, and collect your paycheck.
Of course, you also have to save money and invest it for the future. But, there are no complex financial decisions to be made. For such cases, a financial planner is not necessary.
But as you grow into your career and start accumulating wealth, things change. You buy real estate, you get married, your kids start going to school, you start a business, and life begins to happen.
Your financial life becomes more complex and you start thinking about taxes, education for your children, and perhaps selling your business someday. At Pillar Wealth Management, we deal with these topics everyday for clients with $5 million to $500 million in investible assets.
If you have inherited a large business that has been with the family for generations, then at some point, you start thinking about succession planning.Many high net worth individuals are also dedicated to philanthropy or to a cause that matters deeply to them. As Warren Buffet once said, “giving money away is more difficult than making it.”
Then there are also other topics like insurance, risk management, the legacy that you want to leave behind. Read about specific financial questions that high net worth individuals with $5 million to $500 million in liquid assets face in this complimentary book on selecting the best financial advisor.
Unless you are an expert on taxes, accounting, estate planning, and retirement planning, you probably cannot make the most optimal decisions yourself as you used to when you were a newly graduated young professional.
There is a popular saying, the more money you make, the more help you need. So, the answer to the question “when is it time to hire a financial planner near me” can be found in the size and complexity of your wealth.
When you believe that you need someone to look at various aspects of your financial life in a holistic manner, you can go out and start looking for a reputed and experienced financial advisor.
How much do financial planner cost?
If you are considering hiring a financial planner, then you must surely have wondered how much do financial planner cost. Financial planners generally charge a fee for providing their services.
This fee can either be based on an hourly rate or a fixed amount based on pre-determined milestones. A time-based model is one where the financial planner does work for a certain amount of time and then bills those hours to the client.
A milestone-based model is one where the financial planner and the client determine a set of milestones along with timelines for each milestone. Once a milestone is completed, the amount of compensation for that particular milestone gets released.
Then there is the assets under management (AUM) model in which the fee is a fixed percentage of the total assets that are invested through the financial planner.
This structure has the most transparency because the fee percentage stays the same no matter whatever services are rendered. The fee amount changes according to the value of the assets.
So, in a way, the fee amount is aligned with the performance of the portfolio. The more the portfolio grows, the greater is the fee amount. For example, 1% of $10 million is $100,000. But 1% of $15 million is $150,000.
Pillar Wealth Management follows this model. You may get in touch and have a free consultation to know more.
There is also a compensation model where no fees are charged. This sounds very attractive in the beginning. However, financial planners also have to make a living and they have to get paid one way or another.
The way they get compensated is through commissions. Whenever the client purchases an investment product that is recommended by the financial planner, the company that sells the product pays a commission to the financial planner.
The benefit of this model is no fee to the client. However, the big downside is that the incentives for the financial planner are not aligned with the best interests of the client.
For example, a financial planner may end up recommending a mutual fund or an insurance policy that the client does not really need. The financial planner may do so in order to earn a commission.
Remember that fees are not the same thing as costs. Costs are something that the client will incur for making investments or carrying out transactions. If you want to know more about the difference between fees and costs, then make sure you downloadthis complimentary book about choosing the best advisor for investors with $10 million or more in liquid assets.
A financial planner is someone who helps connect your financial decisions to your financial goals. A good financial planner will carefully understand every single aspect of your financial life. Based on the inputs, he/she crafts a strategy that touchesuponmultipletopics like financial security, taxation, retirement, succession,estate planning, etc.
The ultimate goal of this strategy is to enable you to reach your financial goals. A financial planner should help you make smart decisions that will impact your life for years to come.
The holistic approachof professional financial planning involves multiple subject areas, each of which would usually require the services of a dedicated professional. However, co-coordinating the work of multiple individuals is time-consuming and complex.
With a dedicated financial planner, you deal with one person. For example, at Pillar Wealth Management, either Hutch or Chris will work with you to work out every single aspect of your high net worth portfolio. Feel free to start a conversation with them to know how they can save you time and money.
A financial planner is also someone who is up-to-speed with what the markets are doing, where the economy is headed, and where assets should be allocated.
The right asset allocation can help minimize the drawdowns that hit investors during every economic downturn. They do this full-time for a living and are, therefore, more knowledgeable than someone who runs a business and tries to study the market part-time.
Financial planners can make smart decisions about where to invest, how much to invest, and how to minimize the cost of those investments. Very few people concentrate on the cost part, but it can turn out to be a significant factor when large sums of money are invested over long periods of time.
In fact, if you can spare some time, then we recommend that you download this book on improving portfolio performance for high net worth portfolios between $5 million and $500 million.
It explains how portfolio performance isn’t just about generating a higher rate of return. It is about approaching portfolio management from a much broader perspective.
Any financial advisor can make a financial plan and help clients make investments. But, the work of the best financial planners does not end there. The elite-level financial planners regularly update their clients on how they are progressing towards their life goals.
They make a commitment to do whatever it takes to keep their clients on track. If changes need to be made, then they will communicate their thoughts with the client right away.
This personal touch and an element of handholding is another important benefit of a successful financial planner.
If you have been wondering what benefits can you expect from hiring financial planner, then a one-word answer is – many.
How to find the best financial planner near me?
There are two things that you need to consider when finding the best financial planner near your location. First, the financial planner has to be among the best. Second, the financial planner has to be based at a convenient location which is preferably close to where you are.
If you want to delve deeper into what makes a financial planner the best when it comes to managing high net worth portfolios, download our guide: The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets today.
If you are a high net worth or an ultra-high net worth individual, then you want to find the best financial planner for high net worth portfolios. One of the easiest ways of finding such a financial planner is to speak to other high net worth or ultra-high net worth individuals in your personal network.
Chances are that some of them may already be working with a reputed financial planner.
You can also get in touch with your relatives or family members. They will give you an honest review about good financial planners that they know of.
You can also schedule a conversation with Pillar Wealth Management, a fee-only fiduciary financial advisor that specializes in portfolios ranging from $5 million to $500 million.
Other ways of finding the best financial planner would be through your own research. The CFP Professional website is a great place to find certified financial planners by zip code.
So, you can find financial planners who are within a pre-defined radius from your location. The CFP website is for US-based financial planners. If you happen to live outside the US, then you can visit the relevant Financial Planning Standards Board (FPSB) website. There are FPSB websites for individual countries.
If you want to search financial planners by compensation models, then the NAPFA website is particularly handy. NAPFAstands for the National Association of Personal Finance Advisors.
Its database allows you toscreen financial planners based on their fee models.The same applies to The Financial Planning Association. FPA’s website also allows you to filter financial planners who are fee-only. So, if you want fee-only financial planners in a specific location, then you can find a list on NAPFA and FPA.
Thus, there are multiple answers to the question “how to find the best financial planner near me”.The best answer is the one that works for you.
Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management.
If you would like to speak with them or simply ask any questions about how custom and trusted wealth management advice is offered to high net worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.
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