It’s that time of year, “Spooky Season.” When I was growing up, we just called it Halloween, but there’s always an opportunity to market a holiday as long as possible. Yes, from September until the end of October, you can enjoy pumpkin lattes (pumpkin, anything really) at every corner and find some fall or ghostly decor to outfit your home with. I don’t mind it because it’s a beautiful time of year, and my kids love it.
Once we went apple and pumpkin picking at the end of September, Boden (3 yrs of age) realized that Halloween was on the horizon. He got angry at us that it wasn’t that same day as the picking. We had to make a calendar so he could picture just how long it would take for 30 days to pass.
As my family begins the final preparations for heading out into the lovely evening air and enjoying the old pastime of trick or treating, I thought I’d shed some light on the “tricks” that many associates with financial planners. Yes, I’m fully aware of the falsehoods surrounding financial planners. As a family financial planner, I want to put some of these generalizations to the grave – please pardon/tolerate the intermittent Halloween jokes throughout this article.
What Do Financial Planners Do? Why Do Some Get a Bad Wrap? (Insert Mummy Joke Here)
According to Investopedia, “A financial planner works with clients to help them manage their money and reach their long-term financial goals.”
That is a very broad definition of what a financial planner does, and some of the falsehoods regarding financial planners are derived from what they used to be and not what they are today.
- Falsehood (Trick) #1 – Financial Planners on Cater to Wealthy Clients
It’s true that in the past, financial planners were typically only accessible to people with a large amount of disposable income and expansive estates and assets, you know, like the Rockefellers, Carnegies, or Vanderbilts.
Thankfully, this hasn’t been the case for many decades, and people of all demographics and income levels can benefit from the services of a financial planner. Whether you inherit a fortune or work your way up from minimum wage positions, we all start somewhere and can use advice and guidance to pursue our financial goals.
There are packages and services available to all income levels now, and with access to online portals, seeing an advisor in person is no longer necessary. Regardless of your needs, there’s an advisor out there who can support you, even if they’re not in your neighborhood. I see the potential in all my clients, no matter where they start. Seeking advice is the first step to meeting financial goals.
- Falsehood (Trick) #2 – You Must Have Liquid Funds to Utilize
I hear this concern quite a bit from new clients; they believe that if all of their money is tied up in illiquid equity, such as real estate, 401ks (or other retirement plans), or even reinvesting in their own business, there’s nothing they can do to benefit my services. The truth is quite the contrary; by separating financial planning from investment management, they can get high-quality advice on assets not being managed by my firm. Many of my clients have most of their funds tied up in equity, but that doesn’t mean they can’t use my services or take guidance on handling their assets comprehensively.
What’s the best way to declare inheritance on your taxes? Is a traditional IRA best for your goals? I answer many questions like these daily for my clients, and in the end, the right approach can save them from costly mismanagement mistakes; none of it has anything to do with their asset allocation.
Read My Thoughts On Wages in The Middle Class and How Families Can Adapt to Inflation
- Falsehood (Trick) #3 – Financial Advisors Will Force You to Squeeze Every Penny
A concern that many have when starting to develop financial planning strategies is that they’ll have to tighten up their wallets and live uncomfortably frugally to meet their goals; this might be my most despised falsehood because I am to make lives for families more comfortable, not less enjoyable.
I’ve talked about it many times before, but I can’t stress this point enough, don’t skip the coffee! This is a mantra of mine; it represents how important it is not to deny yourself the pleasures and experiences in life that are precious and fleeting. You can still save and grow your money without sacrificing the pleasures in life. By recognizing the opportunities and avoiding the unconscious pitfalls, you can address your financial goals and still enjoy the perks of life.
Don’t Fall for the Tricks
Now, I can’t speak for all financial planners out there. Still, I can say that most of us are not looking down upon the masses in our ivory towers, and I truly find fulfillment in helping families make better lives for themselves and have confidence in their futures.
Please reach out; I’m always happy to hear a new story, maybe even a bad joke or two.
