Financial planning does more than help you build wealth, achieve goals, retire comfortably, and leave a legacy. It establishes strong financial habits that model financial success to your children and loved ones.
It’s a mistake to think you need to be wealthy to afford a financial planner. The best time to invest in sound financial advice may be at the start of your or your childrens’ adult lives.
The Value of Financial Planning: Education
You don’t need millions in the bank or a degree in accounting to leave a financial legacy to your heirs that changes their lives for the better.
In fact, even if you have struggled financially for most of your life, it’s not out of reach. For example, let’s look at a case handled by ViaWealth’s advisor Courtney Lashomb.
Courtney met with a couple that we will refer to as “The Fiscals.”
The Fiscals had spent much of their adult lives struggling to pay off their student loans. Consequently, when they had a daughter, they weren’t able to save for her education.
This would be a depressing story if it ended here, wouldn’t it?
Thankfully, it doesn’t: The Fiscals did not give up. Instead, they focused on what they could do. As a result, they gave their daughter the graduation gift of financial planning.
The Fiscals’ daughter, whom we’ll refer to as “Undergrad,” did not have the minimum investment for a percentage-based arrangement. Like most recent high school graduates, she had not had much time for nest-egg-building.
So, the Fiscals paid a flat fee, purchasing a year of planning for Undergrad. With professional guidance from the start, she was able to pay off her student loans—and was well on the path to a secure future—within a few short years.
Having struggled with the burden of debt for so long, the Fiscals recognized the value of early planning. Some graduates receive a down payment on a car, but Undergrad got something that could potentially take her much further.
As a matter of fact, it should help her for the rest of her life. She may even pass what she’s learned on to children of her own one day.
Independent Wealth Solutions: What Can We Learn?
The moral to this story could be that you don’t have to eat with gold utensils to leave an extremely valuable legacy. Financial literacy is a lifelong gift that empowers students with the potential to reach a higher quality of life.
Learned early, it can help prevent the struggle, deprivation, and suffering accompanying a life without defined financial goals. It isn’t a magic key to vaults of treasure, but it gives those with ambition the tools and knowledge to seek and secure brighter horizons.
Financial literacy sets us up for greater ease, flexibility, and success in many cases. This can come in the form of wiser short-term goals. It can also have a positive effect on long-term financial goals.
For instance, when someone knows upfront why a high-interest rate loan with high fees is typically an awful idea (no matter how dire their immediate financial circumstances or intense their desire to buy now) they will avoid debt-deepening traps. Similarly, they may aggressively pay off a credit card rather than carrying a balance.
It is much easier to stay on track for a monetary objective when you understand its true significance. That is why an early foundation in financial literacy is a common thread among so many success stories in the business world.
We won’t say that a child lacking an understanding of the basics of finance cannot become a CEO one day. However, in all honesty, it will likely impact their success.
Financial advisors help adults learn their monetary A-B-Cs every day (so it is never too late). Nevertheless, most eventually realize that it probably would have been much easier internalizing it all when they were younger.
Wealth Management Goals Aren’t Just for Millionaires
As beneficial as financial literacy is in the long run, it can almost feel like a mixed blessing when someone’s eyes open… and they see the lifelong mess they have made of their finances.
A 2021 Financial Literacy and Preparedness survey conducted by The Harris Poll on behalf of the NFCC and Wells Fargo found that half of all Americans carry debt on a credit card.
As much as 38% of those surveyed carry the same amount of debt from month to month. The survey doesn’t specify how many participants know that cardholder interest rates are reinforcing a vicious cycle.
Nevertheless, it seems probable that many are unaware. The difference in outcomes between financially literate adults and those who have not been trained to manage money is typically pronounced.
Even much of the once-comfy middle class is living paycheck to paycheck for the same reasons. The American dream isn’t dead, but it can require a little more hustle today—and for those lacking basic financial skills, the entire length of the race runs steeply uphill.
Again, don’t let this discourage you from learning from an advisor as an adult. Now is always better than never.
However, the earlier that someone begins a monetary education in life, the higher their likelihood of living comfortably for the majority of their life.
So, don’t let an asset minimum stop you or your loved ones from getting the professional financial guidance to put them on the right track. At ViaWealth, we love helping people make success stories of themselves and their investments.
That’s why we are eager to work with you to get them started well. Our advisors use our special goals-based method of planning.
We call our approach values-based financial planning because it begins with sitting down to get to know you and your values. As a result, even your longer-term financial objectives gain clarity, making it easier to stay on target for success.
You don’t need a small fortune to start an independent wealth management plan. You don’t even need to know what the S&P 500 is. On the contrary, we have no problem working with those who are just starting to build a nest egg.
Your journey toward brighter financial days could begin with sitting down for a financial portfolio review. On the other hand, if you are changing advisors, we can take a look at investments for rising interest rates together (and we will respect your risk tolerance).
The broader market offers many asset allocation investment products. These include short-term bonds, real estate investment trusts, mutual funds, and more. Regardless of your background, please consider making the time for an investment portfolio review.
We would happily show you what sets our independent wealth solutions apart. So, reach out and contact us today to discover our advisory services offered.