Are you looking out for your future?
Are you looking out for your future?

If you are financial planning savvy, then you will not need these financial planning tips.  Many women are as up-to-date as their male partners and have always made their financial health a priority and do not need this article on financial planning tips.  Hats off to you!

If you are working in finance and understand the concepts of financial planning, investments, trading, and financial statements, you will not need a financial advisor or financial planning tips.  You can do it yourself and can lend help to others. We welcome your comments and your expertise.

What exactly is financial planning?  Financial planning is deciding that you need to start making wiser money decisions so that you will not be in doubt about your financial future.  It can be planning for the children’s education, your retirement or just making sure you are saving for a rainy day. Financial planning helps a person to make sense of their spending and savings.

The lists of financial advisors are plentiful across the web, in the phone directory, and some by word of mouth, but which one is right for you? We hope to guide you in the right direction and here is a book for some basic financial options.

First off, if you are a do it yourself person Dave Ramsey has some key thoughts and plans that are more than useful with step by step processes: The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial Health.  He also gives fabulous attention to detail and this book is a high seller: The Total Money Makeover, Classic Edition, A Proven Plan for Financial Fitness. You can find these and many more here:

1. 2. 3.

 

Here are eight questions that you want to consider in these financial planning tips for choosing a financial advisor:

  • What does the firm offer?
  • Do they allow one on one financial planning?
  • Are you allowed to select your own advisor?
  • What is the history of the company?
  • How large is the company and is it stable?  *Some have company financial statements online.
  • Do they offer a one on one meeting?
  • Do they offer trades and investment planning and advice?
  • Will you need to make an investment to get the phone number and email of the personal advisor?
  • Are you investing in your companies 401K, sorry to say this bluntly, but shame on you if you are not.  When your company will contribute a percentage of what you contribute you are missing out on additional salary, or savings.  However you choose to look at it.

With these questions in mind, let our financial planning tips give you some additional thoughts before going to an advisor:

  • What is your investment potential?
  • Do you need safe investments?  Meaning, never lose your initial investment in the process.  For instance, you do not want to work the Stock Market without a very experienced broker/trader.  If your broker does not sell or trade at the right moment (and sometimes it is moments), or the stock hits the bottom, you can lose every dime you have invested.
  • Do not put all of your eggs into one basket, it is risky to do so.  A good financial advisor would not ask you to put all of your money on one stock, or investment.  It is always best to study the stock market yourself and diversify your investments.  Simply review the profits from certain stock or other investment.  There are many online sources.
  • You can lose more than desired when you invest in the company’s 401K, putting most of your funds into the company stock.  Do not do it. Companies fail and the stock market falls.  It is called diversification.
  • Do you have a budget?  Do you know what comes in and goes out each month?  Here is a budget attached.
  • Have you completed a financial statement?  A balance sheet is where you list your assets, and your liabilities.  When you subtract your liabilities from the assets, the remaining is your net worth.

List here in our Financial Planning tips are a few of the most talked about and useful Financial Advisors.

Merrill Lynch

Edward Jones

Ameriprise

Charles Schwab

T. Rowe Price

TD Ameritrade

I personally have used Edward Jones, but I have read and heard many good things about all of these Financial Advisors.

You can also find budgets online along with balance sheets for income.

 

P. S.  Most banks have a Financial Planning department with a professional advisor who will offer financial planning tips also.  If you are comfortable with your bank, ask their advice on finding the right Financial Adviser.

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