According to a new CNBC and Acorns Invest In You Savings Survey, just 17% of Americans utilize the services of a financial professional. While this number is slowly rising, there are still many people who do not take advantage of working with a financial planner.
There are a few key reasons why it is so important to work with a financial planner, and some of the biggest mistakes people make when choosing one are:
Lack of research
Just like you would research any other professional before hiring them, you should do the same when selecting a financial planner. Make sure to read reviews and ask around for referrals. Also, be sure to ask the planner about their experience and what services they offer.
Not Setting Goals
One of the main reasons to work with a financial planner is to set and achieve financial goals. So be sure to have a clear idea of what you want to achieve before meeting with a planner.
Lack of Honesty
It is important to be completely honest with your financial planner, as they will need all the information to help you reach your goals. Withholding information can hinder the planning process and could lead to negative results. If you feel you can't trust your planner, get a new one.
Not revisiting your plan regularly
Your financial situation can change over time, so it is important to revisit your plan regularly and make adjustments as needed. A good financial planner will be happy to work with you to update your plan when necessary to help you reach your goals.
Not Being Proactive
Financial planning is about working toward your long-term financial goals, so it is important to be proactive in saving and investing regularly. A good financial planner will be able to offer advice and tips for staying financially healthy over time.
Not Making Adjustments When Needed
Just like you should revisit your plan regularly, your financial situation can change over time, so it is important to make adjustments as needed. If one of your investments performs poorly or the amount of money that you need for retirement changes, then you should discuss these changes with your planner before making any moves on your own.
If you are ready the make the next steps to improving your financial health, consider hiring a financial planner today.