What’s happening in your life — and what are your goals? Maybe you want to finally pay off those pesky student loans, are saving up for a down payment on a home, and are adding to your 401(k). While you might have a number in mind — $10,000 to go on the loans or a $90,000 down payment target, for example — how will you get from where you are to where you want to be?
It might be time to create a financial plan.
While making and following a financial plan can help you reach your loan and home goals, it can also come in handy when you’re planning the big one: financial independence. But when saving for such a huge event — the transition to spending down savings after years of accumulation — how much planning should you be doing on your own? And when is it time to bring in a professional?
Major life changes spur some to invest in relationships with their advisors. For others, choosing whether to work with a financial planner or go solo is based more heavily on personality type. Some decide to partner up or not due to the value they place on their time. Still others choose to start now so they have a trusted partner by their side — no matter what comes their way.
If you’re deciding whether to work with a professional, it’s important to remember that you don’t have to go “all-in.” Financial professionals work with their clients in different capacities, and many options are available to suit your style.
A little help here and there
Even if you do your own financial planning, you might want to work with an advisor if you have a passion for doing your own financial planning but just need a hand here and there. You may consider working with a planner on a limited basis to get the expertise you need while maintaining the control you want and keeping your advice costs low. If this is the case, you may search for a planner who offers hourly fees for a-la-carte services. This can be an especially great place to start if you believe your finances could become more complex in the future. If or when they do, you’d already have a relationship with a trusted financial professional in place and could build upon it.
Time to partner up
It may be time to truly partner with a planner for your financial needs via an ongoing relationship if …
You’re a professional in your chosen field — and you’d rather focus on your career than become a financial pro, too.
Your financial life is becoming more complex, but you’d rather spend your valuable time doing things other than managing your money.
Tax law changes are becoming too much to keep up with.
You don’t like to make financial decisions on your own and would rather have an expert to turn to.
You’ve accumulated some wealth and aren’t sure how to manage it properly.
You want to simplify your financial life — and have someone else deal with the details.
You’re in a transitional phase of your life or going through a major life event, and you want to dedicate your attention to the big change, rather than the financial side of it.
You’re experiencing a critical money moment.
Emotions are playing a big role in your money decisions or money is just too emotional for you, and you want to offload some of the feelings associated with it.
If finance just isn’t your thing, or something other than finance is what you’d rather be doing, working with a planner can help take the burden off your plate. From removing some of the emotion from money moves to having a pro on your side when tough questions arise, adding a planner to your team means you can focus on what you’re passionate about in life while your planner focuses on your financial life.
Plus, it’s a win-win: You get an expert on your side and free up your valuable time. And many planners will allow you to be as involved as you’d like or as disengaged as you please. That means you can learn as you go or, as much as necessary or possible, leave your financial life in the capable hands of your financial pro.
An extra checkup
Whether you’re partnered with a planner or just need a hand here and there, these major changes could be reasons for an extra review or meeting, specifically …
Adding to your family.
Buying a property like a home or business or otherwise taking on a large amount of debt. Considering a Change to Your Financial Plan? Head to the Meeting page and find a time that works for you! With unlimited meeting and consultation time, you don’t have to go it alone. We’ll even attend meetings relevant to your financial plan along with you!
Moving locally or relocating entirely.
Changing jobs or careers or going back to work after an extended career absence.
Receiving a promotion.
Seeing drastic changes to your employee benefits.
Receiving equity compensation.
Nearing your company’s initial public offering (IPO).
Building up a large amount in your savings account.
Going through a divorce.
Receiving a windfall or inheritance.
Entering retirement or getting close.
Having lost a spouse or dependent.
Making a big change to your life or financial plan.
Of course, you may just want a better understanding of where you stand today and where you’re headed. Or you might want another set of eyes — or a few sets! — on your finances to help you find oversights or blind spots.
If you manage your finances on your own now, understanding what could be coming your way can help you better prepare. You might even choose to work with a planner at some point but, no matter where you’re at today, make sure your financial plan reflects you, focuses on your goals, and shows you how you’ll get there.
Not a client yet? See if our ensemble approach is right for you. Head to our services page to learn more about what we do for our clients.