7 Things You Must Do To Create a Plan for Your Money
7 Things You Must Do To Create a Plan for Your Money
Brought To You By JP Morgan Wealth Management
Do you need help with your finances but don’t know where to start? You could probably use a financial advisor, someone whose job is to help you draw up a financial plan and get you back on track.
A financial planner can assist with some or all of your money issues by helping you create a personalized plan for your situation. They can help you plan for retirement or college, offer guidance with saving or paying off debt, work with you to build an investment portfolio and more. You might choose a financial planner for a limited purpose or for expansive help with your complete financial life.
Financial advisors’ services usually come at a cost, but if you need the help, it will be more than worth it. Plus, there are ways to get started with a financial planner without paying for the service.
Enrolling in J.P. Morgan Personal Advisors comes with no advisory fee for the first six months. You simply set up a free financial planning session, and an advisor will guide you through building a personalized financial plan and opening an investment account.
Taking your finances, risk tolerance, and time horizon into account, an advisor will match you to an expert-built portfolio and provide ongoing advice. As your financial goals change over time, your advisors will continue to be on hand to adjust your strategy. Also, J.P. Morgan’s team of advisors act as fiduciaries, so you can be confident that any advisor you work with has your best interest at heart.
If you’re considering hiring a financial planner, you’ll probably want to know exactly how you two will create a financial plan together.
7 Steps of Financial Planning
Once you’ve picked a financial planner, there are a few financial planning steps you’ll go through with your planner. Each planner might have similar or different steps, or they might perform these tasks in a different order. But in any case, here is a basic summary of how a financial plan is created.
1. Getting To Know Your Financial Planner
Let’s imagine that Brittany is your financial planner. The first meeting with Brittany might be similar to a first date. You’ll want to know her philosophy, investment approach and what steps she’ll take to help you meet your financial goals.
In your initial meeting with Brittany, ask to review her investment policy statement. The investment policy statement maps out how she will handle your money, her strategy and her work approach to help you meet your financial goals. Make sure to take a look at a sample financial plan as well, if available.
2. Asking Questions
Once you’ve gotten to know your planner, you’re ready for the next step: asking questions. Don’t be afraid to do your due diligence and ask your financial planner questions. She is working for you — as well as with your money — so dive in with these types of questions:
Can you please describe your educational background, experience and licenses?
What are your fees, and how are you compensated?
Are you a fiduciary, and will you put my financial interests ahead of your own?
What services do you offer as a financial planner?
What type of investments do you recommend and why?
What type of communication can I expect from you?
After synthesizing the information from your first meeting with Brittany, it’s time to proceed with the next steps of financial planning.