Why I need a financial planner

I know a lot about money.  In fact, I know so much about personal finance that I also know when I need help with it.   Just like being a good podiatrist doesn't qualify someone to do their own tonsillectomy, knowing a lot about personal money management doesn't necessarily mean that I am also an expert at managing my retirement account. 

Money is a very large subject and it is unrealistic to think that everyone knows everything there is to know about money management, credit use, and investing.  Most people, no matter how much they know about money, will likely need help financial help sometime in their lives.  Managing your finances can be like putting together a puzzle; all the pieces need to fit in order to be rewarded with the “big picture.” If your financial picture is less than clear, make a resolution to assemble a financial team; working with one or more of these financial professionals can help put the pieces in place.

Tax advisor. Tax advisors provide tax advice and assistance to consumers. Tax advisors can help you to navigate tax laws, prepare complete and accurate returns, and develop a strategic tax plan. While consumers can file their own taxes, many consumers benefit from hiring a tax professional. 

Budget and debt counselor. Budget and debt counselors help consumers develop a plan to tackle debt. They can also help you create a spending plan. Budget and debt counselors advocate smart consumerism and believe strongly in the value of saving. Consider contacting a budget and debt counselor at the first sign that your debts are becoming unmanageable.

Financial planner.  Financial planners are professionals who offer investment advice. A financial planner may also be able to help by analyzing employee benefits, discovering insurance needs, and developing a system to manage cash flow. 

Lawyer. Lawyers can help consumers by preparing important legal documents such as a will, living trust, and durable power of attorney. An attorney can also be very helpful if you need to consider bankruptcy. Couples facing a complicated divorce can also benefit from an attorney’s advice. Lawyers can also assist consumers when a violation of the law has occurred. For example, if you feel that a creditor has violated the Fair Debt Collection Practices Act, a lawyer may be able to help.

Before working with any financial professional, be sure to check their credentials. Ask specific questions about their history and areas of expertise. Finally, be sure that you are comfortable with the advisors you choose; ideally, you will be financial partners for life.

 

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.