Has anyone ever used a financial planner?

[Lillers]

I''ll be finishing graduate school this May, and it will be the first time I get a "real" job. We had a financial planning company come and give an elective lecture about money-management to the class, and it seemed really helpful. I was wondering if anyone has ever used these types of services and what they thought about them? I don''t want to pay a company if its not helpful, but I will admit, I have NO clue about how to manage money in the real world.

 

[diamondseeker2006]

Far too often the "financial planning company" is really wanting to sell products to you (and you usually do not need them at this point)! I am sure you can do fine using books on basic money management. You basically need a budget, a savings plan (401k at work as well as an emergency savings account), and live with as little debt as possible. Maybe someone can recommend a specific book that is geared to young people just starting out.

 

[violet02]

We hired one and I thought he was going to give us really great advice on house buying (this was last year). He pretty much either told us stuff we already knew or could have found out ourselves. The only practical advice we got was on which debt to repay when. He also put us in touch with a really cool mortgage broker.

Ditton on what diamondseeker said about books etc. IF we had to do it over I think we''d have not gone to one. I know my DH isn''t happy about the money we spent on it.

 

[DivaDiamond007]

Date: 1/19/2009 8:37:22 PM
Author: diamondseeker2006
Far too often the ''financial planning company'' is really wanting to sell products to you (and you usually do not need them at this point)! I am sure you can do fine using books on basic money management. You basically need a budget, a savings plan (401k at work as well as an emergency savings account), and live with as little debt as possible. Maybe someone can recommend a specific book that is geared to young people just starting out.

Ditto. My DH when to high school with some guy who became a financial advisor. DH stupidly took some of this guys advice and had two bad investments. It took me forever to convince DH to dump this guy and do his own investing.

Suze Orman has a book called The Young, Fabulous and Broke, which I had a copy of. She''s good, but you must keep in mind that she creates and ideal situation for investing and saving money - meaning she assumes that you are not living paycheck to paycheck and actually have money left over to save/invest. It''s not just her, though, a lot of financial gurus do that. Good luck in your planning!

 

[Dancing Fire]

Date: 1/19/2009 8:37:22 PM
Author: diamondseeker2006
Far too often the ''financial planning company'' is really wanting to sell products to you (and you usually do not need them at this point)! I am sure you can do fine using books on basic money management. You basically need a budget, a savings plan (401k at work as well as an emergency savings account), and live with as little debt as possible. Maybe someone can recommend a specific book that is geared to young people just starting out.

agree with DS. stay away from them !!
IMO...most of them just planning on making as much commission as they can off of you.

 

[sammyj]

A financial planner also came into my class during grad school...incidentally, I skipped class that day and I''m the WORST at managing my money!! A book that came highly recommended to me is ''Smart Women Finish Rich.'' I own the book and only got to the chapter where I had to calculate all of my spending (chapter 3, I think?). Thankfully my BF took over my finances and he is the spreadsheet king. If you don''t have a BF like mine and you''re willing to take your finances by their reins, I definitely recommend this book!

 

[mrscushion]

Just want to echo what other posters have said -- be careful not only about the commissions they charge, but also about conflicts of interest that arise from mostly pushing products sold by their firm or by a subsidiary of their firm.

 

[meresal]

I used to be a financial planner/advisor for Fidelity 401k's. Once you get a job, your company's 401k provider will offer FREE advice on the investments options you have within your plan. They will not be "selling" you anything, because your company has already purchased all the options you have.

If you do not have kids (saving for a 529), or aren't making so much money that you could possibly max out the $15k allowable to a 401k per year, then there is no reason to have a separate financial planner.

Other than that, just save as much as you can.

 

[AmberGretchen]

I''ll offer a different perspective.

When my DH (then BF) and I graduated from college and moved cross-country, one of our housewarming gifts from our parents was a couple of sessions with a financial planner. Even though we are both very bright and well-educated, we really benefited from these sessions - the worksheets and feedback we got from the planner carried us through our first few years of living together and also helped us save to pay for a wedding, honeymoon, and new car for my DH.

I really found having the structure and methods for calculating things like how much to set aside for things like once-a-year car-related expenses, and how to go about doing that. Also, it was a great way for my DH and I to get on the same page on our whole approach to money.

I''m sure you could get a lot of that from a book, but I also don''t think financial planners are necessarily a waste of cash, FWIW.

 

[meresal]

Date: 1/19/2009 11:07:40 PM
Author: AmberGretchen
I''ll offer a different perspective.

When my DH (then BF) and I graduated from college and moved cross-country, one of our housewarming gifts from our parents was a couple of sessions with a financial planner. Even though we are both very bright and well-educated, we really benefited from these sessions - the worksheets and feedback we got from the planner carried us through our first few years of living together and also helped us save to pay for a wedding, honeymoon, and new car for my DH.

I really found having the structure and methods for calculating things like how much to set aside for things like once-a-year car-related expenses, and how to go about doing that. Also, it was a great way for my DH and I to get on the same page on our whole approach to money.

I''m sure you could get a lot of that from a book, but I also don''t think financial planners are necessarily a waste of cash, FWIW.

I don''t believe a "true" financial planner is a waste of money. However, those Financial Advisors that try to pass themselves off as FP''s are a waste of money. They usually aren''t trying to help you save money for your own needs, but more so that you can put as much into their investment as possible.

 

[diamondseeker2006]

Date: 1/19/2009 11:15:04 PM
Author: meresal

Date: 1/19/2009 11:07:40 PM
Author: AmberGretchen
I''ll offer a different perspective.

When my DH (then BF) and I graduated from college and moved cross-country, one of our housewarming gifts from our parents was a couple of sessions with a financial planner. Even though we are both very bright and well-educated, we really benefited from these sessions - the worksheets and feedback we got from the planner carried us through our first few years of living together and also helped us save to pay for a wedding, honeymoon, and new car for my DH.

I really found having the structure and methods for calculating things like how much to set aside for things like once-a-year car-related expenses, and how to go about doing that. Also, it was a great way for my DH and I to get on the same page on our whole approach to money.

I''m sure you could get a lot of that from a book, but I also don''t think financial planners are necessarily a waste of cash, FWIW.

I don''t believe a ''true'' financial planner is a waste of money. However, those Financial Advisors that try to pass themselves off as FP''s are a waste of money. They usually aren''t trying to help you save money for your own needs, but more so that you can put as much into their investment as possible.

Ditto!!! And ditto to Meresal''s other post that says to max out your 401k, set up ROTH IRA''s if you are blessed to have the extra money, and definitely work toward saving at least 3 months salary in an accessible savings account for emergencies. The books will help you set up a budget and understand what the max is that you can afford for housing, etc.

One of my biggest recommendations to my own kids is that couples should, if at all possible, not spend all of both incomes. Live as much as you can off one and supplement from the other. That is a tremendous help if one loses a job or if a baby comes along and one wants to reduce the work hours.

 

[Lillers]

Thanks for all the advice! I actually have that book by Suze Orman, but I will definitely check out others. I will also ask this company how they charge their fees (flat, percentage, etc.) and re-evaluate at that point.

 

[isaku5]

Yes, when my mom could no longer see to do her own reading, cheque writing etc., just to protect myself (an only child who didn''t want to be held totally accountable by her for losses) I hired a CFP (certified financial planner) whom I had met a few times before, but not in a financial capacity. To his credit, he didn''t contact me; the reverse was true.

As Mom was well into her 80''s I knew that she should be invested in very low risk items, and they were discussed by the FP and me before the choices were made.

The purpose of the plan was to have her finances last as long as her life(style). That was accomplished, but the chosen funds took a big hit during a "market correction" which he might have been able to foresee, but who knows..

If I were ever in the market for such a service, I would hire a fee-for-service type who isn''t promoting products.

Excellent books have been written by Gordon Pape, Brian Costello and another author whose name eludes me, but his book, geared to young people was called, The Wealthy Barber. All three were geared toward Canadian conditions and products.

Suze Orman gives excellent advice on her talk show, in Oprah magazine and in her many books directed mainly toward women. They''re easy to understand as well as very reader-friendly. A wonderful resourse for the best advice of all: Educate yourself as you''re the one who has the most to win (or lose

)

 

[ChargerGrrl]

I also read SMART WOMEN FINISH RICH a couple of years ago and it was helpful.

DH and I have a financial planner that provides assistance for a variety of services (bonds, stocks, brokerage accts, IRA), he doesn''t just work for Merril, Vanguard etc...

Our main goal for setting up an account with his financial network was to begin saving for our retirement, as we don''t just want to rely on our company 401k''s. He''s been invaluable in this crazy market, advising us on how to weather the storm.

He''s also advised on our company''s 401k''s, evaluating those funds and advising us on how to allocate our contributions.

He doesn''t help us for the day-to-day budgeting. For that he recommends mint.com

 

[ljmorgan]

Financial planners are not a waste of money. What you want is an independent, "fee only" planner. They charge by the hour or by what sort of plan you want to establish, and don''t take commission/perks from selling you various financial vehicles. You can google to find certified financial planners that are accredited in your area.

 

[October2008bride]

Wow. My hubby is a financial planner here in Canada and he doesn''t charge a thing! He works for one of the big banks and when you go in to see him, he can give you a financial plan, help you with investments or make a budget.

I didn''t know it worked like that in the states where you pay for the advice! Maybe we should move down there