Some people don't seek help managing their money because of some stubborn myths about financial planning. Myths like, “Only rich people need financial planners” or “Good advice costs more than I can afford.”
Orlando Lopez, a Certified Financial Planner® professional from TD Wealth Financial Planning, separates fact from fiction.
What are some of the misconceptions about financial planning and financial planners?
A lot of people think that they’re too young to have a plan—or that they’re too old and it might be too late for them. And that’s not the case.
Everyone would benefit from having a plan, because we go through different life stages. So whether your goals are short-term goals, such as paying for a big-ticket item or paying down debt, or more long-term, such as retirement, it’s important to identify what those goals are and map how you’re going to achieve them.
What about the myths that planning is just for the rich, or that advice is going to cost too much?
The wealthy may have a financial plan so that they can maintain the assets that they already have. Everyone else needs a plan to accumulate, grow and create one’s wealth.
In terms of the cost, when you’re engaging a financial planner, ask some important questions. Ask “How do you charge?” and “What can I expect from this relationship?” Understand the different products offered and how they can fit into your needs.
Is there any evidence that it pays to use a financial planner?
Financial Planning Standards Council has done research that shows that Canadians who have a financial plan report higher levels of emotional and financial well-being than those who don’t have a plan.
Any parting words?
Don’t hesitate. Start and take some action in your finances. Engage a financial planner and get the conversation going, because we all need to map out our financial lives.
To find a Certified Financial Planner® professional in your area to help guide your financial future, use our Find Your Planner tool.