We’re coming up on Thanksgiving, a holiday that is about, well, considering what makes us thankful (and turkey, and family, and celebrating). How can a financial advisor in Newark, CA create a comprehensive financial plan for you and your family that would make you thankful?
Why does financial planning make us thankful? Here are a few reasons.
1. It helps us identify our goals
There’s a widespread view (among those who have never used financial planners) that it’s all about money. Only. But in fact, financial planning is equally about goals and dreams. A financial planner works first to help you identify your goals and dreams.
Buying a house for the first time? Retiring in five years? Traveling? Giving back? Raising children and providing for their education? Any and all of these, and much more, can be goals.
The simple fact is, you and your financial planner need to decide on your goals first to manage your financial life effectively. In the process, you’ll become more aware of what you need to do and move closer to your dreams.
2. It is comprehensive
If you’re working on your finances yourself, you may tend to get information only on issues you’re concerned about. That can leave you not knowing about matters that could be helpful to you, but that you don’t know exist! You can end up knowing about savings accounts, but not about tax-advantaged educational planning accounts that can be more advantageous.
A financial planner will be comprehensive, covering the following.
- Your budget (cash flow, expenses versus income)
- Retirement planning (savings, when, where)
- Investments (stocks, bonds, cash, investment accounts)
- Educational planning (for higher education)
- Risk management (insurance)
- Estate planning (wills, trusts, powers of attorney for medical and financial affairs)
3. It helps us manage money
Whether you think you’re terrific at managing money or terrible at it (or somewhere in between), financial planners can help. If you currently manage your own money (checkbook, retirement, savings, debt), a financial planner can work with you to identify any gaps in your strategy or help you increase the value of what you’re doing.
Folks who believe they need significant help, on the other hand, generally have a reason for thinking so. They may have run into issues with debt, or have trouble saving, or haven’t put anything aside for retirement. A financial planner can work out a plan for all these issues, and many more.
A financial planner sheds a light on managing all aspects of your money, for people at all levels of income and with all levels of experience.
4. It helps us manage risk
Everyone’s lives are filled with risk. While no one likes to think about risk, your home could be struck by lightning. You could be struck by a car. You might need something suddenly that must be done, like a car repair or emergency medical treatment, and not have the money to afford it. What happens then?
Financial planners manage risk as part of their services. They will make sure that your assets, such as homes, are insured in case of damage (like lightning, floods, burglaries, and so on). If you have dependents, you should have life insurance in case of your sudden demise. In conjunction with your attorney, a financial planner can assist you in creating an estate plan.
They will work with you to create an emergency fund. Emergency funds usually equal several months of income, to cover you in case of a job loss or sudden emergency needs.
5. It empowers us by giving us financial knowledge
Knowledge is power. Financial knowledge empowers us to do better financially – which in turns benefits every area of our life.
Many people feel like they aren’t empowered about financial decisions or financial life in general — or may feel empowered in some areas but not in others. You may have questions about how much you should save for retirement. You may have questions about what to invest in, for retirement and general savings. You may have questions about your budget, and how to save money.
Whatever your questions, a financial planner can help you by providing you with financial education. They will not only set up a plan for you, they will explain it so that you understand the “whys” and “hows” behind the plan. Knowledge is power, and it is invaluable.
6. They work with our best interests in mind
We follow a fiduciary standard and not all financial planners do. Financial planners who have a fiduciary focus must put your financial interests before their own. Financial planners who do not follow a fiduciary standard may sell particular products (stocks, mutual funds, or insurance) that will bring them commissions.
We are fee-only and do not sell products. We offer several different compensation systems, with flexible fees, hourly, subscription, or assets under management (AUM), all discussed transparently with you.
We have no minimum asset requirements.
7. It’s open to everyone
Some people think professional financial planning is only for the wealthy. Nothing could be further from the truth. We work with everyone, regardless of asset level, class, color, or age. Financial planning benefits you, no matter your income bracket, ethnic background, age, or stage.
At Humanity Wealth Advisors, we believe access to the right financial education can benefit everyone and can change the trajectory of a person’s financial future. We work with individuals, families, and business owners. Contact us today for a brighter tomorrow!