October 18, 2012 by Will Ray
I was thinking about my post earlier this week about why you need a financial advisor, and I realized there were several more benefits that I didn’t mention. A good Certified Financial Planner (CFP) offers many benefits you’ve should consider.
A good CFP (one with the heart of a teacher)…
– Teaches you about what you don’t know
Like I mentioned, many of us don’t have the understanding for everything, or the time or ability to do that research on our own. A good CFP will educate you on those things you don’t understand and give suggestions on if they think it’s right for you. Then you make the decision.
– Does some complicated paperwork for you
I had a 401(k) retirement plan at my previous workplace and wanted to roll that into an IRA after I left. I know I could have figured the paperwork out to get that completed and set up, but having a good CFP in place allows you to do minimal work to get this set up. They know the forms you need, they know who to contact, and they can do it in a fraction of the time you can.
– Watches your back
You should be watching your own back each and every month if you want to be wealthy. The typical millionaire spends 10-20 hours each month working on their budgets and investments. Even so, it’s good to have someone on your team who immerses themselves in this world full-time, 40-60 hours a week.
– Helps you figure out what you need to do to get where you want to go
Dave Ramsey has a fun investing calculator that shows the potential growth of your invested money over time. When calculating retirement needs, a good CFP will account for taxes, inflation, and market fluctuations during retirement better than a simple investing calculator. They see that in the future, and they can help break it down into what you need to do this week, this month, this year.
I’m not a CFP, so there are probably other benefits that I’ve not listed. But these are the ones I’ve personally experienced from working with our CFP for a few years.
Question: What other benefits have you experienced from having a certified financial planner?