Do I Need a Financial Advisor?

When to Hire a Financial Planner

Life can get complicated, and so can your finances. In many cases and many stages of life, a financial planner is not necessary. While many people successfully manage their own money, there are times when seeking professional guidance from a financial planner can be beneficial.

• Major Life Events: Events such as marriage, divorce, the birth of a child, a career change, or receiving an inheritance can significantly impact your financial situation. A financial planner can help you navigate these changes and adjust your financial plan accordingly.

• Feeling Overwhelmed: If you're feeling stressed or confused about managing your money, a financial planner can provide clarity and guidance. They can help you understand your options, develop a plan, and stay on track to reach your financial goals.

• Lack of Time or Knowledge: If you don't have the time or expertise to manage your finances effectively, a financial planner can take on that responsibility. They can handle tasks such as investment management, retirement planning, and tax optimization, freeing up your time and energy.

• Significant Assets: As your wealth grows, so does the complexity of managing it. A financial planner can help you protect and grow your assets, minimize taxes, and plan for your estate.

Financial Advisors can paid in different ways:

1. Commissions - Brokers often receive commissions for financial products that they sell.

2. Fee-based - Advisors charge fees for their services, and may also sell commissioned products.

3. Fee-only - Advisors are paid a fee for their service. The fee may be a percentage of your assets that they manage, a fixed fee (one-time or ongoing), or an hourly fee. Fee-only advisors are required to adhere to the fiduciary standard.

Why Hire a Fiduciary?

When choosing a financial planner, you should consider hiring a fee-only fiduciary financial planner.

• Legal Obligation: A fiduciary has a legal obligation to put your interests ahead of their own. They must act in your best financial interest at all times, even if it means sacrificing their own compensation.

• No Conflicts of Interest: Fiduciaries are not allowed to sell products that pay them a commission or recommend products with high fees. This minimizes conflicts of interest and ensures that the advice you receive is unbiased and objective.

• Transparency: Fiduciaries are transparent about their fees and how they are compensated. You'll know exactly what you're paying for and won't have to worry about hidden costs.

• Peace of Mind: By hiring a fiduciary financial planner, you can have peace of mind knowing that your financial advisor is legally and ethically bound to act in your best interests. They will provide you with objective advice and help you make informed decisions about your money. Remember, a fiduciary financial planner is your partner in achieving your financial goals.

Where to Find a Fiduciary Financial Planner?

Venables Financial Solutions is a fee-only fiduciary
Websites that list fee-only financial planners:
XY Planning Network
NAPFA - National Association of Personal Financial Advisors
Fee-Only Network