Overall financial wellness isn’t just about investing. As your assets grow and your financial needs become more complex, you may benefit from working with a fee-only financial planner.
If you’re planning to retire one day, you likely understand the importance of investing. Leveraging the power of compound interest over time can mean the difference between a comfortable retirement and outliving your resources.
Indeed, the topic of investing often takes center stage in the media and at cocktail parties. Yet as your net worth increases, true financial wellness also requires ongoing financial planning. Whether you’re a DIY investor or have a professional money manager, adding a fee-only financial planner to your team can meaningfully improve your chances of long-term financial success.
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The Benefits of Ongoing Financial Planning
For some, taking a DIY approach to investing or hiring a professional to do it for you may be all you need to achieve your financial objectives. This may be especially true in your early earning years. On the other hand, you may choose to invest on your own simply because you enjoy it.
However, as you become more financially successful, your financial needs tend to become more complex. For example, you may be more sensitive to taxes and/or have complicated insurance and asset protection needs.
Meanwhile, the time and energy you’re willing and able to dedicate to managing your finances often decreases. In your spare time, researching financial strategies and solutions may be the last thing you want to do. Hiring a fee-only financial planner can alleviate the stress of financial decision-making and improve your overall financial wellness.
As Your Net Worth Increases, So Do Your Financial Needs
According to a new study by Wealthramp, 70% of high-net-worth investors—those with investable assets between $250,000 and $2.5 million—said their primary concern is having full financial planning to ensure they don’t run out of money in retirement. Indeed, high-net-worth investors may have accumulated a significant nest egg. However, many are unsure how to convert their assets into a reliable income stream to maintain their standard of living in retirement.
In addition, affluent investors are more likely to need estate and tax planning advice, according to a study by Spectrem Group and Pershing. These topics are increasingly relevant to high earners and high-net-worth individuals, especially with proposed tax changes in the works.
Moreover, many high-net-worth families share concerns like helping their children make good financial decisions and caring for elderly parents, according to the 2021 Investor Report from Investments & Wealth Institute. Many families also want to ensure a partner or spouse is taken care of when the other passes away.
A fee-only financial planner can offer solutions to combat these concerns, among others. For example, at Milestone Asset Management Group, we have in-house tax planners and estate planning attorneys to address all aspects of our clients’ financial wellness. We can also recommend personalized risk management strategies to help you preserve your hard-earned wealth long-term.
How to Find and Select a Fee-Only Financial Planner
Many financial advisors offer both financial planning and investment management services. As such, their fees are often based on a percentage of assets under management. That means they require their clients to move at least a portion of their assets under their care.
There’s nothing inherently wrong with this service model. However, if you’re satisfied with your current investment plan, you may not want to disrupt it just to get financial planning advice.
Some financial advisors like Milestone Asset Management Group offer ongoing financial planning for a flat, annual fee. We oversee the various aspects of your financial life without requiring you to move your investments. In effect, we serve as your “personal CFO” or “financial quarterback.” In other words, we help you anticipate risks and identify your blind spots. We can also recommend strategies to help you achieve your financial goals.
To find a fee-only financial planner, Google and websites like NAPFA and Fee-Only Network can be helpful places to start. In addition, searching for a fiduciary financial advisor who also has industry credentials like the CFP® certification is another way to weed out advisors who may not have your best interests in mind.
Lastly, once you narrow down your list of financial planners to interview, be sure to ask the right questions. To learn more, check out our blog article: 15 Essential Questions to Ask a Financial Advisor.
And don’t discount your overall comfort level when meeting with a fee-only financial planner. Ultimately, your goal is to find someone you can trust with your financial wellness for the long run.
This Year, Consider Hiring a Fee-Only Financial Planner to Boost Your Financial Wellness
Information and technology have certainly made it easier for many people to take a DIY approach to managing personal finances. Nevertheless, delegating to a trusted financial partner can save you time and energy. It can also help you make better financial decisions for you and your family.
Milestone Asset Management Group has a diverse team of highly qualified financial professionals to address your ongoing financial planning needs. If you’re looking for a fee-only financial planner who can oversee the various aspects of your financial life, we can help. Please schedule a call to get started.