What’s the biggest misconception about financial planning?
Kristin: I’d say the number-one misconception is that people think they need substantial wealth to build a financial plan. That’s simply not the case. You start a plan in order to begin building wealth.
When should people begin to think about creating a financial plan?
Kristin: The minute that you’re working and filing your taxes, it’s time to start a financial plan. While an initial plan for a 25-year-old might not be that extensive, it’s crucial to start the process early on. It’s all about financial education, so that people can begin to make better financial choices.
What are some of the top reasons people put off financial planning?
I think a lot of it is fear. People procrastinate because it’s not always easy to examine their finances–especially if there are issues. As a financial planner, my job is to make people comfortable and put their mind at ease by building a plan to help them best meet their goals.
How long does an initial meeting usually last?
The initial discovery meeting can last anywhere from an hour to two hours. Prior to the meeting, customers will receive a checklist so they’ll know which documents they should bring. The advisor will draft an initial plan based on the information submitted. During the meeting, the advisor will ask questions to understand the customer and their unique goals. Then we’d have a shorter follow-up meeting to present the plan and discuss various options.
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This article originally appeared in Advice Matters.
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