Getting your finances in order can be a challenge. It’s not the most exciting topic for many people and it can be confusing to try to make sense of all of the details without making a mistake. Many people seek out professionals to help them organize, manage, and optimize their finances. There are lots of options out there, and each of them do slightly different things. So, what type of financial professional should you use? On this Worth It episode, Dustin R. Granger, CERTIFIED FINANCIAL PLANNER™ and I talk more about professionals working in finance and how they can help you build your security pillar!

What type of financial professional should you use? Dustin R. Granger, CFP® breaks down the roles of financial professionals on this #worthitpodcast episode! Click To Tweet

The Coach

A financial coach or money coach typically focuses on fundamental financial issues or habits. A financial coach works with a client to change behaviors around money. That might be helping a client see where they can reduce spending to create more savings, or helping them get out of debt or understanding their emotions around money, which may have created obstacles to good financial management. The client may meet with the coach or counselor on an ongoing basis to try to change negative habits – similar to the approach of a personal trainer.

 

The Advisor

At the other end of the spectrum are services provided by financial advisors. Some–not all–may be purely transactional or product-focused. Think of financial professionals at large institutions. They manage your investments for a fee plus typically commissions on product sales. They may meet with you every so often to give you an update on your portfolio and answer general questions about other financial topics throughout the year, but your relationship with them is focused on your investment portfolio, and specifically, the assets that they manage.

 

The Planner

While financial advisors traditionally focus on a client’s investment portfolio, a financial planner generally analyzes a client’s entire financial life across cash and debt management, insurance, investments, tax, and estate planning. For example, Dustin R. Granger, CERTIFIED FINANCIAL PLANNER™ uses a disciplined process to help clients clearly define their financial goals, gather information about resources available to meet those goals, and develop a plan to work towards them.

Some advisors are starting to take on a more holistic approach like planners, but you cannot expect it to be a given. If you want your advisor to take on more of a planner role, then you need to ask them how they conduct their business before you commit to them.

 

Get your team in place to help you work towards your ideal life

As you research financial service professionals, be sure to look at their qualifications, such as educational background, relevant work experience, and certifications, to get a better understanding of what makes a particular person uniquely positioned to provide you with financial advice. Be sure to understand their areas of expertise and limitations, as well as how they are compensated.

As you research #financial service professionals, be sure to look at their qualifications! @wealthxdesign #wealthbydesign #CFP® Click To Tweet

Outline of This Episode

• [1:45] Understanding the roles of professional finance professionals
• [3:45] The era of stockbrokers
• [6:30] From stockbrokers to consultants to life planning professionals
• [7:45] What does a money coach do?
• [9:00] What services can a financial advisor provide?
• [11:00] Are you ready to hire a financial planner?
• [13:45] How does life planning fit in?
• [16:30] Understanding the Investment manager’s role
• [17:30] You may have heard of wealth managers, do you know what they do?
• [18:45] How do you check the qualifications of your financial professional?
• [23:15] Where money and media meet: Danielle recaps her experience at FinCon
• [25:15] Get your team in place

   

Resources & People Mentioned

• • FinCon

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A financial planner analyzes a client's entire #financial life across cash and debt management, #insurance, investments, tax, and #estateplanning. Does yours? Learn More: @wealthxdesign #wealthbydesignpodcast #worthitpodcast #CFP® Click To Tweet