Financial Planning – What You Need To Know

Hiring a financial planner

The first step you would take when considering purchasing a home, extending your family or planning for your retirement would be the hiring of a financial planner.

Financial planners can offer you guidance and hep with strategic decisions for any important life choice that may involve your assets and the supporting legal paperwork.

Reaching retirement

They offer you direction as regards how much money you need to be saving and investing for you to achieve your retirement goals.

It’s easy to do a quick online calculation for retirement savings and projections but some of us might actually need help with certain things, such as tax-advantaged retirement accounts, help choosing the best investment vehicle and help us to understand the real cost and risk tolerance associated with each investment type.

Financial planners will also be able to help you with advice on purchasing and owning a home and various real estate issues may fit into your current financial plan.

They can also help you with budgeting for your children’s future. In addition to advising, a lot of financial planners can also act as the broker for investments and can help you to fulfill specific insurance needs.

Where to find a financial planner?

You can find a comprehensive list of nationwide CFPs (Certified Financial Planners) at There are a number of other credentials in this industry so do your research and pay attention to who you are going to deal with for the expertise you need.

What does it cost?

CFPs charge people in a number of ways. Charging a commission, seeking a % of the assets under management, or maybe using a fee-based structure are all typical options. If CFPs are charging on a per hour basis, they would typically seek between $125 and $350 per hour.

CFPs who charge using a % of assets under management will typically charge in the region of 1% to 2%.

Costs will vary greatly depending on the area of the country you are in and the services on offer. If you are somebody with a complicated financial situation, for example with a number of properties, different assets, and a large family to provide for, then it may cost you more to develop a financial plan to cater for your needs.

In this case, it could be up as far as several thousand dollars.

The next steps

Following up with your financial planner regularly is important – at least annually and if any adjustments are needed on your retirement accounts. As an example, if you started a new job that is paying you a salary higher than before, then you would usually check with your financial planner about a roll-over of your 401k and put a higher percentage of salary towards those retirement goals.

Routine check-ins are typical to ensure you are on the right track towards meeting your goals and not under pressure for your day to day spending.


About the Author