Issue #17: Do I Need a Financial Planner?

Well...it has been a week of illness for this guy. I had some virus in my throat (maybe strep, didn't look like it), so I have been on my ass for almost a week.  Surprisingly I am a lot better today and grateful to be able to get this issue out on time!

For those dealing with some sick kiddos or spouse or yourselves, make sure to take the time to rest and recover!  I know some of you can't and feel you are forced due to your financial picture but do what you can, your health is the most important asset you have!  

3 Reasons Why You Need a Financial Planner

This article is designed for you to question yourself about your financial literacy/well-being. Some of us will take offense, get defensive or simply write this article off as it does not pertain to them. I ask you, do not do this, please take the time to read and do research, after all, it is YOUR MONEY.

Now that we get that part out of the way and I have lost 50% (fingers crossed I didn't), I want to start off with this graphic.

Reason #1 - Why you need a Planner!

Now this study asked this question to "Millennial's" (Fun fact - I loathe that general comment, different article will explain). Take the time to ask yourself "Where do you think you'll be when you die?"

Now most of us will say at home, hospital, hospice, which are all very plausible. However, only about 20% of us die in our own home, the majority of us will die in a combination of Assisted Living, Hospital, Hospice or Retirement Community, why you ask. The "why" is because the two parts of our life that we control the most, our HEALTH (Yes, cigarettes and fast food are bad and will cause you to die sooner than others) and our relationship with our OWN MONEY (Emphasis on not HOW much we have but our RELATIONSHIP with our money, see my previous article "Your Abusive Relationship With Money"). The simple fact is most believe they will die in their home - this is where planning comes into place.

Reason #2 - Why you need a Planner!

You will not believe this next finding in the research...

"But besides that, here’s the really scary part: 34 percent of millennials think they’ll be able to get by—comfortably, no less—on less than $200,000 in retirement.The reality, according to AARP, is that to be able to live off of $40,000 a year in retirement, a worker needs to save about $1.18 million for a 30-year retirement." - MARLENE Y. SATTER

Umm...wait what?! 1/3 think $200,000 or less will provide a comfortable retirement?! Now it says millennials but I know from experience this covers our entire population as well. 

I hear you, get off this millennial train...DONE, here is some research of Boomers

"Only 45% of respondents overall considered working with an planner important or extremely important. The proportion jumped to 58% for those with an annual income of at least $100,000, and to 63% for those with $500,000 or more in retirement savings." -Michael S. Fischer

Welp, if that doesn't scare you IDK what will. People with the most money consider having a planner important to extremely important, yet less than 50% of all people think this way. Many people have an attorney, doctor, accountant, mechanic, etc, and will do almost everything they say because they are the "professionals" yet less than half of go to an PLANNER (also the professional) because we have too much pride and THINK we can control OUR OWN money better than a professional?! 

Reason #3 - Why you need a Planner

As we continue down this journey, I realized we have to have multiple articles on this concept, I'm sensing a feeling that we will need a Q&A as well, stay with me as we continue on this discussion.

Q: Should I use a financial planner to manage my retirement portfolio or should I save money by going it alone? – Carl Vitko, Cicero, Illinois

We all would say that is a fair question, no?

"The do-it-yourself approach requires time to monitor your portfolio and the discipline to adjust to different market conditions. You also have to keep your emotions in check when markets are volatile, which investors admit they have a hard time doing. In a survey by Natixis Global Asset Management, 65% of investors say they struggle to avoid making emotional decisions about their money during market shocks.

Even more worrisome: 81% of investors say expectations for double-digit gains going forward are realistic and 54% believe their portfolios will perform better this year than in 2014, when the Standard & Poor’s 500 Index rose by 13%, according to the Natixis survey." - Time Magazine

I want to take the time to talk about the first part of this quote, as the bottom part is scary enough. The top paragraph talks about EMOTIONS, now we all have them and we all "know" what is best for ourselves. This pride/emotion that we show in times when our back is to the wall is the same reason you need a planner. I say this because we are your protector from all things evil in regards to your relationship with money.

Our whole focus is to do what is in your best interest, meaning if we have to tell you "no" like I do to my 8 and 5 yr old, I will because we know what is in your best interest in almost every financial situation that comes around. Most advisers are focused on your investments only, my firm, we focus on every situation that comes about with your money, budget, car buying, school, credit cards, etc. Make sure you find the type of planner that fits you best!

Dive into our podcast episode on the value of a planner vs going it alone (DIY).

You maybe looking for more insight into this topic, this is our podcast show from last year Be sure to subscribe and like/comment please!

#NoBSWealth Clip of The Week

Cannot wait until next week or just want more, check out our podcast @nobswealth and catch us on Youtube. You can always follow me on Instagram and Twitter as well! Or just email me, [email protected].

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#Goonsquad Clip of The Week

If you are a sports nerd like me and want a pod to listen to or watch come check out our @nobsgoonsquad (podcast), here is the link to the show, we go live every Tuesday at 4:30pm CST!