Three Common Myths About Financial Planning
By Marc Bienenfeld CPA
Chief Financial Officer and Financial Advisor
Wondering if you can afford to pay for private school tuition and save for college?
Questioning whether you can afford to maintain your lifestyle when you retire?
Trying to save each month to increase your emergency fund, but coming up short?
Sounds like you would benefit from the expertise of a financial planner.
Financial planning helps people organize and prioritize their financial lives but is often misunderstood. Here are three common myths about financial planning and the accurate information you need to help guide your decision to hire a financial planner.
Myth #1: Financial Planners are primarily investment advisors
Providing investment advice is only one component of a comprehensive financial plan. True planning also encompasses:
· Identifying your needs, goals, and dreams – (how much do you need for necessities, how much can you afford to spend on lifestyle choices, do you want to retire early or buy a second home, etc.?)
· Setting a budget so you can save, invest, and plan for your future – (how much should go to emergency reserves, how much to school tuition, how much to retirement, etc.?)
· Conducting a risk assessment to find any gaps in your plan – (how much disability, life, and long-term care insurance should you have, does your homeowners, auto, and umbrella coverage provide enough protection, etc.?)
· Creating an action strategy to implement your plan – (step-by-step guidance on what to do and when in order to meet your needs and achieve your goals and dreams.)
Myth #2: All Financial Planners are the same
If you think of building a financial plan like building a house, the planner acts like the architect. The planner gathers information from you about what you want to accomplish just like the architect asks where you want the kitchen and bath. Some financial planners feel their job is done when they hand you a thick 3-ring binder filled with graphs and charts like the architect would in handing you the blueprint.
We at BLS don’t hand you a plan and send you on your way. We help you implement the action strategy (build the house) using a system that organizes and prioritizes your next steps. And we meet with you quarterly to track your progress, answer any questions, and move you closer to achieving your goals and dreams. Financial planning as we know it is an on-going process and it doesn’t end with handing you a binder.
Myth #3: Financial Planning is only for the wealthy
It’s a common misconception that financial planning is useful or affordable only for the wealthy.
The wealthy usually can afford to make financial mistakes without impacting their lifestyles. If they don’t make all the right moves, don’t get the best use of their dollars, they’ll probably be fine. It’s the rest of us that need a plan, an action strategy, to live the life we want for ourselves and our families.
It’s an interesting phenomenon. Many of us don’t hesitate to hire accountants to handle our income tax returns even though there are do-it-yourself apps and online programs that would save us money. But we hesitate to hire a financial planner. We try to do it ourselves or don’t do it at all and let the chips fall where they may.
The bottom line, financial planning done right is an asset not an expense.
Ready to schedule a complimentary consultation?
Please call 954.689.9484 or email your questions to MBienenfeld@blsfinancial.com
Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. www.SIPC.org on electronic advertisements. BLS Wealth Management is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 1000 Corporate Drive, Suite 700, Fort Lauderdale, FL 33334, 954-938-8800. Estate Planning services are provided working in conjunction with your Estate Planning Attorney, Tax Attorney and/or CPA. Consult them for specific advice on legal and tax matters. The views and opinions expressed are those of Marc Bienenfeld and my not necessarily reflect those of MML Investors Services, LLC - CRN202302-278222
