How a Financial Planner Can Aid You in Achieving Your Objectives

William Waggoner II |

Rochester Hills Financial Advisors - Stoney Creek Advisors

If you are in need of top rated Rochester Hills Financial Advisors, please contact Stoney Creek Advisors at (248) 266-2900 to schedule a consultation.

They assist you in organizing and planning your finances. They estimate how much money you will have when you are ready to retire using your existing income, savings, and investments. They also assist you in making financial decisions that will aid in achieving your objectives.

Financial planner and financial advisor are commonly used interchangeably. However, as there are various paths to becoming a planner, not all planners and advisors are created equal. The quality of the advice you receive is significantly influenced by the planner's level of education, training, and expertise. Generally speaking, a planner can help you make better plans if you manage your own funds.

If you're considering seeking assistance, it's a good idea to be aware of what to anticipate from a financial planner. You'll need to be able to determine if the person you're speaking to is trying to sell you something or is actually providing you with sound financial guidance and credentials. Find out what to look for and what a financial planner may provide you.

Main Points

Planning your finances can help you identify your objectives and create a strategy to reach them.

A competent financial planner can provide guidance on a variety of financial matters.

Before you begin working with a financial planner, make sure you are aware of the several ways they get compensated.

While some planners are qualified to offer investment advice, not all are or desire to do so.

Financial planning: What Is It?

Setting financial goals is the process of financial planning. This can involve being aware of when and for what purposes you will need to use your money. You set various objectives with checkpoints along the route. You then outline the course of action you must take in order to reach those checkpoints and goals.

A planner has to learn about you personally and financially in order to provide you sound advice. They use this information to paint a picture of how and when you can accomplish your goals. A planner uses your data to make predictions based on facts about inflation and investment returns. You'll discover how much you can save aside, as well as how much money you can earn and spend.

The Work of a Good Financial Planner

A competent planner will be able to recognize and offer suggestions on each of the following:

- Modifications you may need to make in order to save money

- The amount of money you need to set aside for retirement

- The several retirement account options available to you, such as IRA, Roth, and 401(k)

- Whether the mortgage you already have or want is the best option for you, and whether you should refinance your current loan or pay it off.

- Whether you have the necessary insurance and how much you might require (this would include life insurance, long-term care insurance, disability, and sometimes property, casualty, and health insurance)

- Depending on your lifestyle, how much money you should save in your emergency fund

- A few adjustments that could reduce your tax burden

- The rate of return you'll need to generate over a specific period of time in order to attain your aims.

- If you should downsize sooner or later in life depending on your situation

- The proper amount of investment risk for the types of accounts you have

Additionally, a lot of planners offer assistance with tax preparation and estate planning. Find out from a planner which of the aforementioned topics they cover and whether they will provide written recommendations. A recommendation should always be requested in writing. In this manner, there are no uncertainties regarding the suggested course of action.

When you meet with a planner and they immediately begin talking about a product, they are not attempting to help you plan; rather, they are trying to sell you something.

A good planner won't advise you on what you need until they are aware of your objectives and have performed a long-term prediction. Account information and information on your entire financial situation should be collected by planners.

Financial Advice

In addition to financial planning, some planners also provide investment guidance and investment management services. The type of investing advice you receive might vary, from a general advise on the asset allocation strategy you should use to a more specialized recommendation on which investments to buy and sell. Make important to find out if your planner merely provides planning services or also offers particular investing advice.

For experienced and trusted Rochester Hills Financial Advisors, call Stoney Creek Advisors at (248) 266-2900 to schedule a consult!