But at this stage in life, we Gen Xers should be laser
focused on what we want and how to achieve it.
So, how do we move forward, conquer our money fears head on
and start the new year with fresh resolve?
Get to Know the Financial Planner of Today
For some, one answer might be working with a Certified
Financial Planner— an all-in-one financial adviser. Competent financial
planners have expertise in budgeting and cash flow, debt management,
investments, taxes, insurance, retirement planning, estate planning and college
planning. They may partner with specialists such as CPAs and estate planning
attorneys to implement aspects of the comprehensive plans in partnership with
their clients.
The goal is to put all aspects of your vision and your
financial desires on the table — with no shame, guilt or fear — to formulate a
plan that will enrich your life. A financial planner can empower you to learn
about finances, without leaving you feeling insecure about what you don't know.
Understand the Basics Before Hiring an Expert
Yet only a paltry 24% of Gen Xers use financial planning
professionals, according to a March 2021 survey by the personal finance site
MagnifyMoney.
Why so few? Many Gen Xers believe they don't have enough in
assets or income to qualify for financial planning services and that they can't
afford planners' fees.
Luckily, there is a sea change underway in the profession.
Registered investment advisers or RIAs are moving away from
a minimum asset requirement and towards flat fees and subscription-based fees.
In traditional assets under management models, advisers
charge a percentage of your overall annual investable assets to pay for their
services. Flat fee and subscription-based models, by contrast, allow for
services to be paid from a client's income.
That option works well for people who are just starting to
build their investment portfolio.
The annual fee typically ranges from $3,000 to $10,000 for
middle-income households. That may sound steep, but it's often the cost of one
family vacation. And when financial advisers do their jobs well, the fees will
more than pay for themselves over time as clients become able to reach their
financial goals.
Some financial advisers also take on clients pro bono when
those people are in a serious money bind. And some charge hourly fees, which
can be helpful if you're looking for an adviser to help you with one particular
financial concern, such as how to pay for college or how to save and invest
wisely for retirement.
Getting the Financial Guidance You Desire and Deserve
As you begin your journey interviewing potential financial
planners to find the right one, it's useful to first understand what you're
mostly looking for. Help with investing? Advice to manage debt better? Ideas
that could let you retire early?
When you start meeting with prospective planners, ask about
the types of clients they are passionate about working with and why. The goal
is to find a financial planner with experience helping other people like you
and who has a similar philosophy to you about investing risk and achieving
money goals.
And there must be chemistry!
You have to feel the good vibes — an alignment with your
energy, values, mindset and culture. You want to feel like your financial
planner is in it to win it together with you, anchored in joy, peace and
clarity and committed to doing the work together.
It's All About You
Remember: At the center of this journey is you. Don't let
anyone tell you otherwise.
Make sure your financial adviser has the emotional and
intellectual capacity to listen, understand and embrace you; to provide clarity
on the tradeoffs for making informed decisions; to have the courage to say that
something you're considering doesn't align with your vision and values and to
show wisdom in navigating the next steps.
It might sound strange, but ideally you'll want to search
for a financial planner to spend your life with. This relationship should be a
partnership, a marriage, a covenant between parties, anchored in respect,
honesty, transparency and care, recognizing the economic exchange of time,
energy and money for all parties involved.
Financial planning is a lifelong exploration that lets you
examine, with a trusted financial partner, what matters to you, how to fund it
and how to pivot when changes occur. The pandemic and social unrest have been
great tests.
Looking for this type of partnership? Put your goals at the
forefront, ask the tough questions and place your trust in someone who can help
enrich your life not just financially, but holistically.
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