How a Financial Planner Helps Save You Money

Cara Mccarron

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• Publié par: assantecompan
• Publié le: 03 février 2013
• Nombre de lectures: 43

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How a Financial Planner Helps Save You Money

Introduction For the average person, the world of finances is often pretty confusing. Figuring out how to take your income and pay all of your monthly expenses is tricky enough, not to mention making investments and planning for the future.

That’s why so many people seek the help of a financial planner. Having expert advice and guidance at your disposal will help you organize your finances and will even save you quite a lot of money over the long term.

What Is a Financial Planner?

Basically, a financial planner is a professional who specializes in helping people with their finances. A financial planner can help you:

 Organize your financial life  Create a financial portfolio

 Plan for the future  Make worthwhile investments  Evaluate risk  Allocate assets

Offers a Variety of Options

One of the ways a financial planner can help you save money is by offering a wide variety of options for you to organize and plan your finances.

By being thorough and guiding you through many different possible routes to take, the financial savings will add up over time.

Retirement Savings Plan

One key area that a financial planner will help you with is your retirement. For many people, retirement seems so far away that they really can’t be bothered to try and formulate any thoughts about it, let alone a detailed plan.

When a financial planner gets to work on your retirement savings plan, one of his main priorities is to find ways to save you money over the course of the plan. You might find your way there alone, but a financial planner will show you how to save more than you could ever hope to manage alone.

Tax Reduction

It’s no secret that making investments and saving money will result in you paying more taxes. It’s also no secret that most people would do just about anything to avoid paying them, as long as it’s legal.

A financial planner has seen every situation before and knows which kinds of investments and savings plans will reduce the taxes you have to pay. Reducing your taxes should definitely be part of any financial planner’s overall vision.

Helps Set Realistic Goals

Sometimes, when we take the initiative to plan our own retirements or get our financial lives in order, we get a little over zealous. It may seem like a good plan at the time, but after awhile it becomes apparent that it’s way off balance on the reality scale.

A financial planner helps you set realistic goals and create actionable steps to achieve them. Keeping everything realistic for your situation will help you stick to the plan and save money over time.

Diversification

Along with offering several different options for your financial planning portfolio, choosing the right blend of investments is another way a financial planner saves you money.

The art of choosing just the right mix of investments and asset allocation at just the right time is yet another quality that makes a financial planner valuable to you. Once a planner starts the diversification talk, you know that he’s serious about taking your plan to the next level.

How to Choose a Financial Planner

Hiring a financial planner is a great way to get your financial life organized and save you money, but you can’t just hire anyone. Ask questions like:

 What type of education do you have?  How much practical experience do you have?  What are your fees?

 How are you compensated?  Can I speak to current or former clients?  What services do you provide?

Questions to Answer

In order to save you money and plan your financial life, a financial planner needs to ask his own questions. Be prepared to field questions like:    What is your financial situation like?  How much do you make? How much do you owe?  What are your short and long term goals?  Do you have any current investments?  Do you have a current retirement plan?

 Do you have a will?  Do you owe any outstanding taxes?

References

http://money.ca.msn.com/savings-debt/alison-gri ffiths/how-a-financial-planner-can-save-you-mon ey Canada MSN Money

http://www.getsmarteraboutmoney.ca/en/managi ng-your-money/planning/financial-planning/Page s/what-to-expect-from-your-financial-planner.asp x#.UPBbAEazeDk GetSmarterAboutMoney.ca