January 2010
Think a financial planner is only for someone who has a ton of money to invest and manage? Think again! It’s a common misperception that “financial planning” is only for the rich, but, really – how do you think the rich get so rich anyway?! Definitely not by sitting back and letting their financial lives pass them by. So, no matter how much (or, ok, how little) you make, it might make sense for you to consult a financial professional to help chart your financial future.
A Different Kind of Financial Planner
Fab & Fru recently had the pleasure of speaking with financial planner Mark Zaifman, founder of Spiritus Financial Planning. He started Spiritus in 2003, fueled by his holistic approach and passion to bring financial planning services not just to the wealthy, but to all of us!
Like the core of the Fab & Fru message, Mark believes that, “financial planning is a life-long process that assists you in taking control of your financial future”. Like most personal financial planners or advisers, Mark evaluates his clients investing, saving and retirement goals and then often helps to manage their investment portfolio. What sets him apart is that Mark is NOT just interested in high net worth individuals and the big returns their investments bring. He believes in helping to create a financially healthy and secure environment for everyone! So, YES – there are legit professionals out there who want to work with you and build relationships – no mater how small your net worth.
Focus On Short Term Goals
It’s easy to get overwhelmed by the very thought of your long term financial picture, particularly if you feel you’ve fallen a wee bit behind where you should be! Instead, Mark suggests first thinking about financial planning from the perspective of a short term goal, like going on vacation. He asks, “Would you go on vacation without doing some basic planning?” And points out that, “at the very least, you would know where you want to go and how you are going to get there!” So shouldn’t you give the same attention to your life’s financial voyage as you would to a spring break trip?
The Mind, Body & Spirit of Financial Planning
Aside from the nuts and bolts of number crunching and what-if scenarios, there is also a spiritual side to planning your finances. Mark refers to this as the “art” of financial planning. He explains that the art is focused on, “mind, body and spirit…a process of goal setting that puts you in control of your life.” Basically, what are the dreams and aspirations behind the numbers adding up (or dwindling down) in the bank?
A Woman’s Intuition
I found it interesting that the majority of Mark’s clients are women. One of the first things he wants to debunk is the ridiculous myth that women are not good with money. He has seen first hand the power of female intuition – and believes women are born with innately good skills which allow them to understand money and investments- so we’re actually starting out ahead of the game!
But where does a woman – or anyone – get started on the road to financial planning? Mark urges all of us to educate ourselves as much as possible. Here are his top picks to get started!
- Your Money Or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence by Vicki Robin & Joe Dominguez – The book focus is on how to “make a life, not just make a living”. Mark is also a contributor to the latest edition.
- Vanguard.com - The website has great educational tools.
- Personal Finance for Dummies – sure the name of the book is a little off-putting! But Mark says if you can get past the title, there is some really useful info inside!
What’s In A Name?
One of the problems with looking for a financial planner is that pretty much anyone can call themselves a financial professional. We found the SEC website helpful as a reference for the different professional designations to look for and what they all mean ( you’ll notice the dizzying array of letters that come after peoples names – you need to learn what these titles and degrees actually mean and which ones count).
Fee-Only vs. Commission Based
Another thing to look for in a financial planner is ‘fee-only’ financial planning. A fee-only planner (like Mark ) does not earn a commission or receive referral fees from recommending specific investments to his clients – he just gets paid a flat fee for his time and analysis. The vast majority of “advisers” out there are commission-based, so be aware of the difference. Be sure you ask any planner you are interviewing how they get paid – you need to know up front what the potential is for conflict of interest!
So now you know – there are planners out there you can turn to no matter how much money you have. The most crucial part to establishing a relationship with a financial professional is to do your homework – check backgrounds, get references, and of course trust your female intuition when choosing an adviser!
Stephanie Berenbaum is the co-creator of the website Fab&Fru.com, A Girls Guide to Living Well and Spending Wisely.