Do I need a financial professional?

Many people feel uncomfortable talking about finances. It may feel too personal, overly intimidating or culturally taboo. But working with a financial professional can help you better understand your finances and make plans for the future — and that’s just for starters. Along with valuable guidance, you may gain some peace of mind as you make progress toward your goals. Here are some of the benefits of working with a professional.

Setting goals
Your financial goals are as unique as you are, and that’s where most financial professionals start. What are you saving and investing for — now and in the long run? A financial professional can help you to articulate these goals and then create a plan that defines your expectations, how you get there and where you may fall short.

Investment guidance
Financial professionals are generally knowledgeable about different kinds of investments and the moves to make in your specific situation. Some will give you recommendations for investments to manage yourself, but many manage investments for clients on an ongoing basis, earning a percentage of the portfolio assets each year in return.

Communication and information
Hiring a financial professional doesn’t mean giving up control. Many meet with clients at least once a year to talk about results and what’s ahead. The more you know about your investments, the more confident you’ll be about making adjustments, handling market shifts and asking the right questions over time.

That doesn’t mean all financial professionals are alike. When selecting one to work with, consider the following tips:

• Make sure you know how they are paid. It could be by commission, hourly rate or an annual percentage of your assets (typically 1% or less). Don’t be afraid to ask for specifics until you’re comfortable with the process.
   

• Tell them how you prefer to communicate and how often. It should be at least yearly to monitor annual performance, but you may want to meet more often depending on your needs or goals.
   

• Check their credentials. Many professional designations require a financial professional to stay up on current strategies, rules and regulations. Additionally, FINRA’s BrokerCheck® is a good way to research professionals and their firms.
   

• Be prepared to bring your most recent account statements (checking, savings, retirement, etc.), latest tax records, estate planning documents, and information about all other assets, investments or income sources to your first meeting. But if your financial professional doesn’t start with your goals and what’s important to you, find one who does.