As we go through life, there are many phases and each one represents a different financial need. For this reason, long-term financial planning is essential for every generation.
A recent study revealed that 42.2 percent of Millennials, 29.8 percent of Generation Xers and 28 percent of Baby Boomers and Seniors do not have a retirement plan. Furthermore, research shows that of the American workers who invested in an employer provided retirement plan, only 40 percent asked for a financial advisor’s help in managing their savings or investment portfolio.
So, why don’t more people seek financial advice? A reason may be there are several myths about financial planning. Here are four myths we would like to dispel:
1. Financial planning is only for the wealthy.
There is a misconception that financial planners should be grouped with other expensive professional service providers. Fortunately, financial planning can be affordable based on your specific income; communicating openly with your prospective financial planner will help both parties set an agreeable budget.
2. My finances are few and simple; therefore, no help is needed.
You may not have many assets to manage, but financial planning can still benefit you. For example, most parents with young children are aware they need to buy life insurance to protect their family. However, almost all overlook disability insurance, which could help cover lost income in the event one parent is injured or ill. Also, financial planners often have insights most people have not considered.
3. Once I hire a financial planner, my work is done.
It may sound nice to turn over your finances to someone else, but that’s not the way it works. An experienced financial planner will work in conjunction with you to help plan for your future.
After listening to your needs, a financial planner can give you recommendations and advice, but ultimately you will remain in control. You will also be responsible for keeping your income tax withholding updated as well as your beneficiaries on your life insurance policies.
4. Financial planning is only about investing money.
While investing is a key aspect of building your portfolio, it’s not the only part. Quality financial planners are trained to look at your entire financial picture to take all factors into consideration before giving advice or suggestions.
In helping you develop a plan to reach your goals, your financial planner will include budgeting, asset managing, goal planning, tax planning, and retirement planning.
At Financial Consulting Group, our team will work in partnership with you to pave the way towards meeting all your financial goals and needs. Let us work with you to help you build your future with confidence. Call us today at (504) 835-1707.