Financial Planning

So I met with a financial planner today.  I don’t know why I didn’t do this sooner, but I’m like everyone else I love to spend!  My words of advice to my younger self and to my children in the future are, as soon as you enter into the workforce, get your finances in order.  I cannot even begin to tell you the amount of knowledge that I received in one telephone conversation.  Here are the top reasons you need to meet with a financial planner when you secure a full time job:


1. You need to understand the various investment accounts that are available to you in this world.  

If you don’t understand how your money will be put to work, and the risks associated with it, then you shouldn’t be investing your money in various accounts beyond a standard savings account.  You have to know how bonds work, a simple savings account works, and why you would set up a mutual fund account, along with the many other options that are available to you.  This allows you to set up your money to work for you!

2.  You need to know how much money you want to save for various things.

This would require you to think about your future, and the goals you want to reach for.  Is it early retirement?  Do you want to have children?  Do you want to purchase a house?  And so on and so on…. You need to have all this information written down prior to you meeting with the financial planner, as this is information they need.  They can assist you in ensuring that you reach your goals properly.

3.  You need to know what your expenses look like on a monthly basis.

Are you spending more than you can actually afford?  You never want to get into the trap of living in debt.  A financial planner can assist you, in really looking at what you are spending on a monthly basis.

4.  You have to think about what do you want your retirement future to be.  

As crazy as this sounds you need to ensure that you have enough money for retirement.  Many employers have pension plans set up for their employees but, do you know overall how much money you would be pulling from this fund once you do retire?  Many are surprised to find that they lifestyle they thought they were going to be living isn’t a reality.

5.  You need to have an emergency fund and know how much should actually be in it.  

I have learned very quickly, that nothing is ever guaranteed and that includes your job.  You can be let go at a moments notice which can be something beyond your control.  In order to ensure that you are covered during this unfortunate event, a financial planner can forecast how much you need to have saved in order to sustain yourself during an emergency.

6.  The final reason you need to meet with a financial planner is, you need think about if you have covered your family in the unfortunate event that you pass away.  

A life insurance policy is not a money maker for your family as some may think.  Believe me, I’ve heard it!  A life insurance policy is to ensure that your family is covered for expenses that will be incurred during this difficult time – funeral expenses, debt coverage, etc.  The money is also there to ensure your family can live as they had been prior to your death for a certain period of time.  A financial planner can ensure that you have enough coverage for your family and also for their future.

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