Why a Financial Planner Could Save You Time, Money… and Sanity

Jennifer Openshaw — Fri, 07 Nov 2008 12:55:43 -0600

It's Monday. After a frenzied morning at home, you finally get the kids on their way to school. You finally find a parking space at work and head into Starbucks for a quick morning treat ... only to have your credit card declined, leaving you scraping the bottom of your purse for change. You hurry to work, drop into your chair, and hit the flashing light on your phone: your preschooler is running a 102 temp and needs to be picked up, your husband is going out with the guys tonight, and the bank called about your account.

Does this, or some part of it, sound like you?

I bet. Face it, your finances are as messy as your kitchen counter, but it takes a back seat to your kids and demanding deadlines at work.

You, my friends, are not alone. I talk to countless women who face the never-ending juggling act. Over half of you want to learn more about retirement planning, investing, and savings, but only one in five know where to begin, according to a 2008 Women, Money and Power study. The first place you can begin is at WeSeed, where you can finally learn about buying companies (instead of just being their customers) in a safe, risk-free environment, and in a way that's fresh and fun.

The other step, I'll put into two words: GET HELP. You have to be a parent and you really should go to work, but you don't have to be your own financial planner, at least not yet.

Don't know if you need a planner? Well, do you:

• Hope to retire early?
• Have a mountain of debt? (Even a molehill can be tough to get on top of.)
• Wonder if you should jump into or out of the market?
• Wonder if renting or buying is more economical?
• Have tricky taxes, or aren't sure if you qualify for tax credits or deductions?
• Just not have the time to deal with any of the above?

The overwhelming answer is probably somewhere between "yeah" and
"heck yeah" for most people.

"Financial planners" are a dime a dozen, but the good ones who can help you with all your needs are harder to come by. You can get started by searching around at the National Association of Personal Financial Planners, the Financial Planning Association, or the Certified Financial Planner Board of Standards.

When you think you've found someone, remember this: It's not free. There are several different payment arrangements, including fee-based, which is a straightforward fee of anywhere between $120 to $300 an hour. Other advisors may charge fees that include commissions, so if she's recommending a particular stock, remember that she might have a conflict of interest.

Financial planners who cover a broad scope of topics can help you with your specific questions on taxes, investments, insurance, retirement, budgeting, and savings. While you will need to do a little legwork in the beginning, a financial planner can save you time and stress in the long run. Start sifting through planners by looking for answers to these questions:

• What are her qualifications? Does she have a Chartered Financial Analyst license, or is she certified as an accountant or financial planner? The CFP certification can be checked at the Certified Financial Planner Board of Standards.
• How much does he/she charge? Fixed or hourly fee? Be really clear up front about what you want them to do, so that you get what you pay for.
• Can she provide tax advice on shelters, credits, and deductions?
• What is her experience with investments and securities?
• Does she get commissions on the products she sells?
• Does she cover estate planning including wills and strategic gifting?

As they say, time is money. So don't waste either. Any financial planner would be happy to tell you how she can help. Just call. But remember this: the experts aren't always the "expert." Ultimately, managing your finances is a personal responsibility and you must take personal interest. So, if you don't have time, consider a planner, but also take the time to build your confidence and your smarts by using sites like WeSeed, where it's all about you.

There are a lot of smart cookies blogging about financial planning these days, too:

• Wise Bread's got 9 signs you need to fire your financial planner.
• Josie Kay, a planner herself, has an answer to "Is my financial planner overcharging me?"
• Muse Communication posted about her financial planner and some investment planning differences between men and women.

Jennifer Openshaw is co-founder and President of the soon-to-launch WeSeed, a fresh, fun, revolutionary approach to demystifying the stock market for real everyday people, and author of "The Millionaire Zone." The host of ABC Radio's "Winning Advice," she's been seen on shows ranging from Oprah, Rachel Ray and Dr. Phil to CNN, CNBC and Fox. You can reach her at jopenshaw@weseed.com.

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Why a Financial Planner Could Save You Time, Money… and Sanity