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Building your financial team: Who should be on it?

Financial success is best achieved with a team of experts and confidants who can help you navigate difficult decisions by providing valuable input and advice. The question is, who should be on this team? And are there temporary members of your team to consider?
Who the first person on your team?
If you are in a relationship, then your spouse or significant other is the most important person on your financial team. You can’t be successful if you and your financial partner don’t work together on the same goals.
How can couples gain financial congruency?
It starts with having a meaningful discussion on short term and long term goals. It also requires compromise and making everyone an equal partner, the final step is agreeing to money rules that are always followed.
Who is the next most important person on a strong financial team?
It is a trusted resource who can provide general guidance on a wide range of topics. This is most likely your financial institution representative but it could be an online community as well. The key is finding someone who is knowledgeable and has ideas that can help you with day to day financial concerns.
After finding a trusted resource for basic financial topics, who should be added next?
For many, it is likely finding someone to provide guidance on property insurance matters, usually an auto and homeowner/renters insurance agent who can help you find the most appropriate coverage for your situation.
What is the next logical team member?
For most, it will be a financial advisor, one who can help them start building more complex investment portfolios and building a plan to reach long term financial goals.  This is one of the key building blocks of your team and can have a strong influence on your long term success.
Are there a couple of important tips when deciding on your financial advisor?
First and foremost, be sure to interview 2 or 3 advisors who have been highly recommended from successful people that you know.  The second most important aspect in selecting an advisor is to determine if they have experience with your situation and that you will be a unique client for them, not just another portfolio.  Finally, always make sure they have the high standards of accreditation and fiduciary duty.
Are there any other important members of a strong financial team?
Two that are extremely important as your financial situation becomes more complicated and/or your family size increases is an accountant and an attorney. Both of these bring in depth knowledge to very sophisticated topics that will occur during your lifetime, and most of the time, they will save your money and headaches when complicated financial situations arise.
These all seem like long term team members, are there any short term relationships that are important?
Two very important ones are your real estate agent and your mortgage loan advisor.  Both will have input on what is usually the largest purchase for people in a lifetime.

Posted: 10/16/2016 with 0 comments

Categories: Advisors, Money Matters, Planning

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