Bespoke Financial Planning That Works For You

Have you ever tried on a piece of “one-size-fits-all” clothing? Did you find that “fit” might not be the right term for how it pinched at the neck and bagged at the bottom?

One-size-fits-all means, in essence, it doesn’t fit anyone perfectly. 

The same is true for financial planning strategies. 

We understand — it’s so much easier for a planner to pull out a well-worn book of generalized, formulaic rules of thumb to help dispense and explain advice. But those rules, even if they are time-tested, don’t work for everyone, all the time. 

Because your life comprises a set of unique qualities and circumstances — your job, your age, your retirement goals, your health, your gender, whether you have kids or not, whether you’re a business owner (which presents its own challenges) — your financial plan should be customized to your needs. 

The goal is having a financial plan that has been strategically designed to be personalized, realistic, and most of all achievable.

When choosing a financial advisor, be on the lookout for questions — lots of them. Because if your advisor doesn’t take the time to understand the ins and outs of your life and your goals, we’d advise against taking their advice. 

Read on to make sure you know what your financial advisor should be asking you.

 

The Big Question

“What do you do for a living?”

It’s the first thing you should be asked, but not just for the reasons you think. 

Sure, your income has a big effect on how much you’re able to invest, which in turn has a direct effect on when you’d plan to retire. 

But also consider that many professions require planning strategies that take into consideration employer benefits, insurance needs, debt management, or retirement income. Even more so if you run your own business, as entrepreneurs have unique needs and challenges. 

Examples:

• A teacher’s state pension might mean a different strategy for investments and traditional retirement plans
• A retiring factory worker leaving a physically taxing job may elect to file for Social Security as soon as possible
• A heart surgeon may require a specific type of disability insurance, while an accountant may only need a group disability policy
• A small business owner might need help with personal financial planning as well as strategizing for their business

An important follow-up question should be whether you plan to stay in your current job or profession. If someone in their 20s is ready to start planning for their financial future, but they’re currently working as a server until they finish law school, that job change is significant. It should have a serious impact on financial advice and planning.

 

Stages of Life

Whether you’re a precocious young adult with dreams of early retirement or late-bloomer trying to get on track financially as mid-life approaches, stage matters. Stages determine the need for (and perceived availability of) specific financial advice. 

All of the things that factor into your specific life stage — age, gender, career, children — affect not only what advice should be given, but who will take the advice offered. A recent survey showed that only one-third of Americans consistently act on financial advice. 

Here are some numbers

• Specificity matters – a recent survey showed that people are  60% more likely to act after receiving specific, personalized advice that if they got more generalized advice
• 20% of the Americans surveyed described trying to find relevant, customized financial advice “difficult”
• 51% cited not knowing where to look, and 74% said they don’t know who to trust

When consulting with a financial advisor, make sure they are seeking to understand and base their advice on your specific life stage and circumstances. And when you find one you can trust, for the love of all that is good, follow their advice. Don’t be a life-stage statistic.

 

Gender and Age

We’d love to say that we live in a society that has surpassed these considerations. But we don’t. 

And it’s not just the way society perceives people based on these two categories — it also has to do with how people generally act at different intersections of age and gender. 

The same survey mentioned above found that, among participants, whether people sought advice, acted, or even wanted to act on financial planning advice varied based on age and gender. 

• Participants between 18 and 34 were the most interested in getting financial advice of all groups surveyed
• 40% of respondents of the same group said they frequently sought financial advice
• The same group was also found to be most likely to make changes after getting financial advice
• Almost 50% of the women surveyed believed that getting bespoke, objective advice would be too expensive
• 33% of women said they didn’t have time to find trustworthy financial advice
• However, women were more likely than men to act on the advice they received 
• Boomers found it most difficult to find financial advice, and less than a third said they consistently followed the advice they did get

An understanding of the way people in different age and gender categories generally behave is critical in a financial advisor. Knowing the specific types of resistance people might offer allows advisors to tailor their advice and approach. 

It’s also good for you to understand these things about yourself so you stay on the lookout for tendencies you might have that impede your journey to financial independence.

 

What does it all mean?

When you’re interviewing potential financial advisors and planners, ask them as many questions as they should be asking you. Find out what their experience is working with people in your profession, present or future. Ask how they’ve helped people in your stage of life. Find out what they can do for you, not just personally, but also to help your business thrive. Have them offer you some strategies they might use to ensure your financial plan fits you, and wasn’t just designed to fit all

But most importantly, don’t settle. There are financial advisors out there who have the desire and knowledge to help you reach your financial goals. 

In fact, we have one right here at NEST Financial. If you’re ready to work with someone who has your needs and interests at heart, reach out to Gloria at info@nestfinancial.net. We are a boutique, Austin-based wealth management company, and we are passionate about helping Austin families, business owners, and individuals. Let us help get you on your path toward financial security

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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.