In my previous post, I wrote about retirement planning and recommended that it be done with the guidance of a financial planner.
But outside of retirement planning, a more fundamental question that many individuals and couples ask is: do I/we need a financial planner? I’ll try to briefly answer that below.
What is Financial Planning?
Simply stated, it’s the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement.
A financial planner should be able to guide you through an evaluation process that will help you take a “big picture” look at where you are financially. The process involves gathering relevant financial information, setting life goals, examining your current financial status and coming up with a strategy or plan for how you can meet your goals given your current situation and future plans.
To answer the original question, I think you would benefit from professional financing planning if:
- You need expertise you don’t possess in certain areas of your finances. For example, a planner can help you evaluate the level of risk in your investment portfolio or adjust your retirement plan due to changing family circumstances.
- You want to get a professional opinion about the financial plan you developed for yourself.
- You don’t feel you have the time to spare to do your own financial planning. This is a common scenario for busy physicians and locum tenens.
- You have an immediate need or unexpected life event such as an inheritance or a major illness.
- You feel that a professional adviser could help you improve on how you are currently managing your finances.
- You know that you need to improve your current financial situation but don’t know where to start.
