I am a member of Generation X. Financial advisers are more than just for the wealthy.
I think it's great that this finding from a recent study by the financial services research firm is true.
Gen Xers who were born between 1966 and 1980 should be laser focused on what they want and how to achieve it.
How do we move forward, conquer our money fears and start the new year with renewed resolve?
Get to know a financial advisor.
One answer might be to work with a Certified Financial Planner. Competent financial planners have experience in budgeting and cash flow, debt management, investments, taxes, insurance, retirement planning, estate planning and college planning. They can work with specialists such as CPAs and estate planning attorneys to implement parts of the comprehensive plans.
We are in our 50s and have retired with less than $1 million.
The goal is to put all aspects of your vision and financial desires on the table and come up with a plan that will enrich your life. A financial planner can help you learn about finances without making you feel like you don't know anything.
Before hiring an expert, understand the basics.
According to a survey by the personal finance site MagnifyMoney, only 24% of Gen Xers use financial planning professionals.
Why so few? Gen Xers think they can't afford planners' fees because they don't have enough in assets or income.
There is a sea change happening in the profession.
RIAs are moving away from a minimum asset requirement to flat fees and subscription-based fees.
Advisers charge a percentage of your investible assets to pay for their services. Flat fee and subscription-based models allow for services to be paid from a client's income.
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It works well for people who are just starting to invest.
Middle-income households pay an annual fee of between $3,000 and $10,000. It is often the cost of one family vacation. Fees will be paid for themselves as clients reach their financial goals when financial advisers do their jobs well.
Some financial advisers will take on clients pro bono when they are in dire financial straits. If you are looking for an adviser to help you with one particular financial concern, such as how to pay for college or how to save and invest wisely for retirement, hourly fees can be helpful.
Getting the financial guidance you want.
It is useful to first understand what you are looking for when interviewing potential financial planners. Is there help with investing? Is there any advice to manage debt better? There are ideas that could allow you to retire early.
Ask prospective planners about the types of clients they are passionate about working with and why. The goal is to find a financial planner with experience helping other people like you and who has a similar philosophy to you about investing risk and achieving money goals.
There must be chemistry.
You have to feel the good vibes in order to align your energy, values, mind-set and culture. You want to feel like your financial planner is committed to doing the work together with you, and that you are anchored in joy, peace and clarity.
It is all about you.
You are at the center of this journey. Don't let anyone tell you otherwise.
Make sure your financial adviser has the emotional and intellectual capacity to listen, understand and embrace you, to provide clarity on the trade-offs for making informed decisions, and to have the courage to say that something you're considering doesn't align with your vision and values.
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It might sound weird, but you should look for a financial planner to help you with your finances. This relationship should be a partnership, a marriage, a covenant between parties, anchored in respect, honesty, transparency and care, recognizing the economic exchange of time, energy and money for all parties involved.
Financial planning is a lifelong exploration that allows you to examine with a trusted financial partner, what matters to you, how to fund it and how to pivot when changes occur. The social unrest and the Pandemic have been great tests.
Are you looking for this type of partnership? Put your goals at the forefront, ask the tough questions, and trust someone who can help enrich your life not just financially, but holistically.
The co-CEO and co- founder of 2050 Wealth Partners is a Certified Financial Planner named Lazetta. She is passionate about making the financial planning profession more inclusive and she does so through a variety of activities. She was one of the Top 10 of Investopedia's 100 Top Financial Advisors in 2020 and 2021. She is on a mission to create wealth for the common good.
This article is a work of art and is owned by Twin Cities Public Television, Inc.
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