Financial planning is an art as much as a science. There are a lot of moving parts, regulations are constantly in flux, and new technology not available to the general public is providing tech savvy planners with the ability to accomplish more than ever.
A person outside of the industry won’t have access to those things and often lacks the knowledge needed to provide themselves with the best financial planning possible. So, you can give financial planning a go on your own, but by saving a dollar you may also be costing yourself thousands more in lost financial opportunities. In order to make the biggest money moves you’ll need professional assistance.
Here are a few ways a knowledgeable financial planner can help you, and, more specifically, provide a more complete and clearer financial picture for you.
Removing Financial Related Emotions
People have strong emotions connected to money — and rightfully so. Nobody likes to see their hard earned wealth remain stagnant. Or worse, watch it disappear. However, making decisions based on emotions is rarely a smart idea.
“This doesn’t mean that your feelings aren’t valid. It just means that your emotions don’t always give you the full picture of your financial situation,” said Ramit Sethi, the author of I Will Teach You To Be Rich.
A financial advisor will be able to look at your financial situation with fresh eyes and without the emotional baggage you are carrying about those decisions.
Creating a Roadmap
“Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success,” Pablo Picasso once said.
Although Picasso wasn’t, to our knowledge, a financial planner, the world-renowned artist hits the mark about planning to achieve your goals. While a few may stumble to their destination, it’s best to plan your metaphorical road trip if you want to arrive at your destination. A financial advisor has the correct tools to get you there.
Addressing Tax Situations
The government is always going to want their cut of your cash and not giving them their share will cause a host of problems. You need someone who knows the ins-and-outs of taxes not only to stop you from paying too much, but to make sure you don’t underpay either. You think the government cares if you pay more? No, but try paying less and see how that works out for you. It won’t end well. A financial planner can, and will, help you become more tax efficient, which will keep more money in your banking account.
The Bottom Line
You may have heard the following saying: “Spend a dollar to save a penny.” Not hiring a financial planner will do exactly that. So, while you may have one more penny in your pocket, not hiring a professionally accredited financial planner will end up costing more than a dollar in the long run.
For the best results, financial planning should be left to the professionals. It’s your money, make it work for you by hiring a financial planner. The decision to forgo a professional could ruin you financially. The decision to bring someone on board to help sort your finances could make you richer. The choice is yours.
Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.
Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd.