WHO ARE FINANCIAL PLANNERS? AND WHAT DO THEY DO?

Ever felt overwhelmed by the complex world of finance? You’re not alone. This is where financial planners come in – Finacial planners are people who help you sail the journey of your financial journey without you having to be in control of the ship. Isn`t that a sweet gesture? Now let`s talk about what Financial planners do in detail

Who is a financial planner?

A financial planner is a qualified professional who works with individuals and families to create a blueprint for their financial health.

They act as guides, who continuously analyze your current financial situation, understand your goals, and craft a personalized plan to achieve them.

Against the normal stereotype, these guides aren’t just helping get away from debts, they help you become stable in every area of your finances, including:

  • Budgeting and Debt Management: Sticking to a budget is something the majority of us fight as individuals and ultimately might incur debt if not properly taken care of. Financial Planners help you develop and stick to a budget, manage debt effectively, and free up cash for the goals that you`ve been longing for.
  • Investing and Asset Allocation: Want to be able to amass wealth easily? Financial planners guide you in making informed investment decisions based on your risk tolerance and financial objective because investments come with both advantages and disadvantages.
  • Retirement Planning: Retirement plans are one of the most essential plans in life because at this stage you are no longer working but only relying on the funds you`ve gathered over the years. Now to make the funds saved sustainable for you, that`s also what financial planners do. Financial planners help you determine how much you need to save for a comfortable retirement and develop strategies to reach that target.
  • Tax Planning: Tax is a very important role to perform as a citizen of any state and it could get overwhelming trying to get it all on your own so financial planners work with you to minimize your tax burden and maximize your tax advantages.
  • Insurance Planning:  Making Insurance always keeps you at an advantage financially, Planners also analyze your insurance needs and recommend appropriate coverage for life, health, disability, and property.
  • Will Planning: Time and time again is the allocation of assets among family members that causes big issues. To avoid this occurrence, Financial planners can guide you in creating a will and estate plan to ensure your assets are distributed according to your wishes after your passing.

What are the steps involved in financial planning?

So, how does a financial planner translate these services into action? Typically, the process involves several key steps:

  • Initial Consultation: This meeting allows the planner to understand your financial situation, goals, risk tolerance, and time horizon.
  • Data Gathering and Analysis: The planner collects and analyzes your income, expenses, assets (e.g., savings, investments, property), and liabilities (e.g., debt).
  • Goal Setting and Prioritization: Together, you will define your short-term (e.g., buying a car) and long-term goals (e.g., retirement).
  • Developing a Financial Plan: The planner creates a personalized strategy to manage your income, expenses, investments, and insurance to achieve your goals.
  • Implementation and Monitoring: The planner assists you in implementing the plan and regularly monitors your progress, making adjustments as necessary.

Types of Financial Planners.

There are different types of financial planners, each with varying qualifications and specializations to suit your own preferred needs Here’s a quick breakdown:

  1. Certified Financial Planner (CFP®): This is a widely recognized designation indicating a high level of education and experience. CFP® professionals are required to adhere to a strict ethical code.
  2. Registered Investment Advisor (RIA): RIAs are fiduciaries, meaning they are legally obligated to act in your best interests. They can manage your investments for a fee.
  3. Financial Advisor: This is a broader term that may encompass various professionals offering financial advice. It’s crucial to understand their qualifications and fee structure.

What to look out for in a financial planner?

When searching for a financial planner, consider factors like their experience, qualifications, fees, and investment philosophy. Interviewing several planners before making a decision is recommended. Professional organizations like the CFP Board can be a helpful resource in your search.

Invest in Your Future through Financial Planning.

Financial planning is an ongoing process. As your life circumstances evolve, your financial plan needs to adapt as well. A good financial planner will be your trusted partner throughout your life journey, empowering you to make informed financial decisions and achieve your long-term goals.

Financial planners are invaluable assets in journeying the difficulties of personal finance. They offer personalized guidance, helping you achieve financial security and peace of mind.

HOW CAN TGS HELP YOU YOUR PLANNING ON A PERSONAL LEVEL? 

 By taking charge of your finances with the support of a qualified professional, you’re investing in a brighter financial future.

The TGS app also helps you stay on track personally with your financial goals by making sure you can save, invest, know your network, and carry out philanthropic acts all in one place. Check out more on our website tgsisthegoodsteward.com

  • WHO ARE FINANCIAL PLANNERS? AND WHAT DO THEY DO?

    WHO ARE FINANCIAL PLANNERS? AND WHAT DO THEY DO?

    Ever felt overwhelmed by the complex world of finance? You’re not alone. This is where financial planners come in – Finacial planners are people who help you sail the journey of your financial journey without you having to be in control of the ship. Isn`t that a sweet gesture? Now let`s talk about what Financial…