Why Even You Need a Financial Advisor

Most people assume Financial Advisors are only for millionaires and people approaching retirement.

Nay Nay.

If you’ve got an income, you could use a financial advisor.

How could you use one? What about when you:

• Land your first big job and aren’t sure what to do with your paycheck
• Want to invest but are overwhelmed by the idea
• Are getting married, buying a house, or changing jobs
• Are struggling to make a plan with your student debt, credit cards, or mortgage
• Are looking to optimize your taxes and investing strategy

Here are Four Categories of Advisors:

1. Financial Coach/Educator

Before you start your financial journey, you have to know where you are.

Financial coaches are perfect for this.

They’ll help you confidently answer questions like:

• Am I spending the right amount on rent, cars, food, and vacations?
• Am I saving enough?
• What sort of lifestyle do I want? How, with my income, can I work my way up to that?
• Which accounts should I be using? And how do I actually use them?
• Can I afford this new car, furniture, vacation, etc.?
• How do I get out of this debt?
• How do I spend less?
• Do I have a will in place?

Legally, financial coaches won’t be able to make investment recommendations. They also (likely) won’t have the certifications and accreditations that more advanced advisors do.

Don’t let that dissuade you.

They don’t need a license to help you answer the above questions confidently.

You can find them at local non-profits or counselors.
Some even write newsletters like Fast Start Finance 🙂

2. Robo-Advisor/ Large Firm Planner

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As you nail the basics and start getting ready to invest, it might be time for one of the “big 3 firms”: Schwab, Fidelity, and Vanguard.

These firms have both great customer support reps and licensed professionals able to help you create your investment goals and make sure what you’re investing in matches them.

They are normally free to use or charge a tiny fee of less than 0.5% per year.

3. Fee-Only CFP

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CFPs or Certified Financial Planners are highly specialized individuals who do exactly what their title says: They make financial plans.

They can go all out creating a 20-year plan that models out getting married, buying a house, having kids, losing your job, doubling your income, buying a boat - you name it, they can plot it out and give you estimates on what your finances will look like down the line.

Don’t want a massive plan? They can also answer life event questions like “should I buy this house?” or “can I upgrade my car?”

Most CFPs meet with their clients quarterly to annually.

“Fee-Only” means they don’t earn commissions from what they recommend. You pay them directly (normally hourly or annually) which keeps their advice conflict-free.

4. Wholistic Wealth Advisor (may also be a CFP and/or work at a Large Firm)

Wealth Advisors combine #1-3 and are able to handle the most complex situations. If you’ve got high income, multiple accounts, complex goals, etc. they may be right for you.

Not only can they make a plan for you, they can manage your money as you achieve that plan.

They can also help do your taxes, set up estate planning, make investments on your behalf, and more.

To Be Clear, Financial Advisors Can’t Do Everything

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They won’t make you rich overnight. They also can’t stop you from spending money poorly.

They can, however, be a great partner in your finances.

They’re the ones who are going to save you from waking up at 40 saying “I WISH I did this differently”.

My wife and I still met with someone when it was house buying time. Talking through big decisions, even just to confirm your thoughts is very valuable.

The sad fact is, most people wait too long to get that value.

If you’re unsure of where to go, I’d like to help you get started.

Book a call, bring your questions, and I’m happy to help you figure out if you need a coach, a CFP, or just a few habit changes.

That’s what Fast Start is here for!

For those of you who use financial professionals, what have you found?

Are they worth it to you? Do you prefer to handle things on your own still?

Work in the financial advising industry? I'd love your feedback on how I presented the various options.

Have a great weekend,
Chris
[email protected]

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All of this content is for educational purposes only and should not be taken as financial, investment, or tax advice. Any mention of securities is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned.