5 financial tips that clients of financial planners love the most


When it comes to managing your personal finances, there is a lot of advice out there. You might find yourself asking your friends for advice, reading articles for hours, or even scrolling through social media to see what your favorite financial influencers have to say.

I spend a lot of quality time educating myself about finances and trying to figure out how to optimize and improve my own portfolio. When I talk to financial planners and advisers, I find myself inundated with so much good information that it can be overwhelming. That’s why I decided to try and find the best advice financial planners give their clients by asking them what bits of information make their clients thank them over and over again. Here is what they had to say.

Don’t just save for the distant future

Many people are working hard now and saving for their future retirement. But financial planner and advisor Jake Northrup says it’s not enough to save for later in life, and his clients also appreciate his strategies focused on the near future.

“You need to save the right way so that you have the ability to use your money throughout your life, rather than waiting until age 59.5, when most of the front account penalties. tax disappear, ”says Northrup.

He encourages his clients to save in different “buckets”, each with a corresponding investment strategy: zero to five years, five to 15 years and 15 years and over.

“A lot of people limit their ability to enjoy money throughout their life because they only save in their 401 (k). By also saving in a Roth IRA account and a brokerage account, you are giving yourself the ability to use the money much earlier in life, ”says Northrup.

Get financial education

If there’s one thing I’ve learned in my personal financial journey, it’s that you need to seek personalized advice along the way. Financial planner Cody Garrett says personalized education during the financial planning process always gets huge appreciation later.

According to Garrett, “Unlike financial ‘tips’ that tell others what to do, education gives families the clarity and confidence to make their own informed decisions. Given the uncertainty and financial variables beyond our control on the way to and throughout retirement, having clarity on your financial situation and a measurable plan of action to refine the plan is more important. of value than the numbers on the page. ”

What type of life insurance is needed

A big part of working with a planner or financial advisor is getting help figuring out the types of insurance you need. Charles H Thomas III, a financial planner, says it means a lot to clients when he can help them plan for important situations that might arise later.

“I work with many families who know they need life insurance to protect their children, but don’t know where to start or how much they need,” says Thomas. “When I work with a family to see what future obligations need to be covered, like college, income replacement, etc., it takes a lot of the stress and uncertainty out of the decision.”

Treat your HSA like a long-term investment account

Perhaps some of the best advice involves strategies that aren’t so obvious.

One of his most helpful tips, financial planner Kevin Mahoney, is to treat your health savings account like a powerful long-term investment account.

“A lot of the millennials I’ve met haven’t thought about how an HSA might fit into their overall investment strategy,” Mahoney says. “For my peers who have these accounts, they often spend the dues in the same tax year or don’t take advantage of the HSA investment option. But the triple tax benefits of the HSA mean that the dues are invested today in low-cost, diversified funds can reach significant amounts as retirement (and our larger health care costs) arrives. ”

Time in the market is better than the time in the market

When it comes to getting advice for investing in the market, there are different schools of thought. Financial planner Keith Onto says clients love it when he reminds them that time in the market is more important than timing in the market.

“I can’t tell you how many times customers have contacted and asked if it’s time to sell and switch to cash in anticipation of the next correction,” Onto said. “No one can consistently time the market, and more often than not the market has taken the opposite direction from what the customer might expect. Most importantly, the client must remember the time horizon of their individual goals. “


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