Putting together your financial team
Formal or informal, we all have our support system, the go-to folks, the advisers who catch the brilliant ideas we lob or talk us down when we approach a ledge. I have my own team of professional experts—a banker, a lawyer, an accountant, a business coach, and a marketing wiz. They are all individuals I know and trust because, over time, they have proven their integrity and wisdom.
In the world of personal finance, there are many types of advisers-money therapists, money coaches, financial planners, investment advisers and registered representatives. Each serves a unique purpose, and some individuals have multiple skills. I know a money therapist, for example, who was a financial adviser for over 10 years. I was a psychotherapist and am now a financial planner. As we evolve in our careers we use garnered skills to inform our chosen field. This is a huge benefit and should be something you look for when considering which advisor is right for you.
There are times when you simply need a sales person to present the facts and help you choose between an array of financial products. In other situations having a therapist or financial planner is absolutely the way to go. I’ve put together the following guide to help you decide exactly who your ideal financial team members might be:
Money Therapist
A money therapist will typically hold a master’s degree in psychology or social work, with extra training in working specifically on money related issues. She will have an understanding of the interaction between various psychological disorders and money. For example, if a person has obsessive-compulsive disorder, it’s far more effective to address the disorder first through therapy and perhaps medication, and then address issues related to money management. Financial Therapy is a new field of specialization and is quickly growing in popularity. Here in Portland, Oregon, we are fortunate to have Brian Farr, MA, a money therapist who used to be a bond trader. There are others like him around the country.
Money Coach
As a trained professional, a money coach may or may not have a master’s degree or coaching certifications. It is, however, important to understand their background and credibility. Some were financial advisors who found they loved coaching more than managing money. Others are naturally good with money and love to share what they know. Work with a money coach when you want help understanding your behavior around money, or you need someone to hold you accountable to various tasks you are trying to master. Check out the Money Coaching Institute and my favorite money coach, Shell Tain.
Financial Planner
A Certified Financial Planner™(CFP) has skills that are both broad and deep, including the expertise to address tax, legal and estate issues as they relate to your personal and business finances. To become a CFP, a person must earn a bachelor’s degree, log three years experience advising clients, pass a rigorous two-day board examination and maintain a clean record with both the Financial Industry Regulatory Authority and Securities and Exchange Commission (FINRA/SEC). In addition there are steep continuing education requirements.. CFPs are as varied as any profession; so look for someone who works with both your money and your emotions. After all, you need to feel safe enough to voice your fears, expectations, hopes and dreams.
Investment Adviser/Registered Rep
Investment advisers, sometimes known as registered representatives, are professionals who have securities licenses and/or are registered investment advisors within their state. Depending on their level of experience, they may be an excellent source of information and fantastic to work with. As with any professional service, financial advisors of all types can be invaluable confidants or they can be grossly misinformed and suggest investments and solutions that have long lasting negative ramifications on their clients’ portfolios. Always check backgrounds and references thoroughly and trust your gut when interviewing candidates for your financial team. Ask how they are paid for the services provided, what fees are associated with opening and closing accounts, and check them out on the internet before signing on the dotted line.
It’s up to you!
You may choose to work with just one financial professional at a time, or have your financial planner and money coach work together to help you reach your goals. The important thing is to ask questions before engaging someone. You want to know whom they can help and if you fit that profile, what their background is, and how long it might take to get to your goal. Ask for referrals from the coach to the financial adviser or from the financial therapist to the financial planner. And don’t forget to check out their website to see if you like the way they represent themselves. Ask questions, and note whether or not you get answers that you understand, that make sense to you. Having the right adviser who is savvy about the issues and concerns that you have will make all the difference in your experience.
© 2011 Luna Jaffe
Great! You are amazing and you are doing it.
Good to read about all the different approaches there are for help with financial matters. I am struck by how many of them you have within your own life experience, your previous work and with your current commitment to your chosen professional life. You roll a lot of them into one person!!
I have to say, I appreciate reading this site. Maybe you could let me know how I can subscribing with it.
Hi! You can subscribe here: http://www.lunariafinancial.com/?cat=1. Thanks for your interest! Luna
Thanks a bunch for this information. Keep up the great work. I’ll be coming back often.
Is it ok if I leave a backlink to my site on here? If not please remove it! Thanx! Green Funds