In a world where regular folks are often threatened by forgotten budgets, half-baked retirement plans and inscrutable legalese, there’s only one team that can protect your financial interests while helping you plan for the future.
This sounds like a job for — dun, dun, duuuun — your financial A-team.
[See: 8 Times to Talk to a Financial Advisor.]
Yes, sometimes you need to bring on a financial professional — or four — to rescue your finances.
Your team of financial superheros should include a range of specialists who can help you identify your money goals, save money on taxes and draft up legal paperwork. Whom you decide to bring on board will depend on your age, your goals and the complexity of your financial situation. “The higher the net worth, the more team members you [typically] need,” says Kelly Graves, a certified financial planner and partner at Carroll Financial Associates in Charlotte, North Carolina.
Here’s a who’s who of the pros you should consider recruiting to your financial dream team.
Financial planner. A financial planner is quarterback of your money team. This professional can review your financial statements, identify goals and address questions. As team captain, he or she will also coordinate with the rest of your financial team, sharing regular reports and coaching you through your interactions with legal and tax specialists.
Aim to find a financial advisor who is designated as a certified financial planner and will act as a fiduciary, offering advice that’s in your best interest, not based on commissions. There are lots of resources for locating financial planners in your area. Search the database of the National Association of Personal Financial Advisors, a group of fee-only financial advisors. Or check out the Financial Planning Association, the largest membership organization for certified financial planners. Consider a financial professional from the Garrett Planning Network, whose members provide advice on an hourly, fee-only basis.
The cost of retaining a financial planner varies widely, depending on his or her fee structure, location and services offered. You might expect to pay around $150 or more per hour, or 0.5 to 1.5 percent of assets. Don’t be bashful: Make sure to ask about this fee upfront when you’re interviewing potential planners.
[See: Decode These 10 Vexing Financial Terms.]
Tax professional. If your tax situation requires more expertise than your online tax-filing software program provides, then a tax professional may be worth adding to your financial A-team.
If you already are working with a financial advisor whom you like, ask him or her for a referral, since it’s essential that your pros communicate and work well together, experts say. Consider seeking someone with a certified public accountant designation, which means you’re dealing with an accountant, qualified through rigorous testing and licensing. Another designation — the enrolled agent title — identifies an expert who has demonstrated tax expertise to the Internal Revenue Service and specializes in taxes. Find one through the National Association of Enrolled Agents.
The cost will depend on several factors, including the complexity of your tax situation. “The more complex it is, the more it’s going to be,” says Allan Katz, president of Comprehensive Wealth Management Group in Staten Island, New York. “It’s about $150 to $300 per hour depending on what kinds of needs you have.”
Estate-planning attorney. Depending on your age and family situation, you may want to hire an estate-planning attorney who can help you draft essential legal documents, such as a will, advance health care directive and durable power of attorney.
Experts recommend finding a law professional who specializes in this kind of end-of-life planning work. “I feel real strongly that you don’t get the person who did your family’s traffic ticket this month, and is next month putting your estate together,” Graves says.
What you’ll end up paying ranges. You may pay a flat fee of several hundred dollars for an attorney to write up common legal documents. Or you may pay an hourly rate. People in the Providence, Rhode Island, area generally pay $2,500 to $4,000 for more advanced estate planning, depending on the law firm, says Jason Archambault, managing member of SK Wealth Management in Providence.
The good news is that you don’t necessarily have to meet with this pro that often. A financial planner can tell you when a life change or tweak in the law makes it necessary to reconnect with your estate attorney and update your plan. A good one may even be able to sit in the meeting with you and help translate the legal-speak.
[See: 14 Important Personal Finance Dates to Mark on Your Calendar.]
Insurance broker. Make sure you’re covered in an emergency by having the appropriate insurance for your needs. Your financial planner can help you identify what kinds and levels of coverage you need, then recommend an insurance agent. When you and your financial advisor agree on what kinds — and how much — of each insurance product you need ahead of time, you can avoid being oversold on unnecessary products.
You can also check with your state insurance department to see how long someone has been licensed, says James Dew, a certified financial planner and president and CEO of Dew Wealth Management in Scottsdale, Arizona, in an email. “You don’t want someone to learn on your dime,” he says.
Depending on your money situation, you may also want to look into an investment advisor, private banker — who can help you secure a bridge loan — and a certified private wealth advisor among other financial pros. No matter whom you hire to your financial A-team, though, it’s worth repeating: “Make sure all these professionals can communicate and work well with one another,” Katz says.
More from U.S. News
7 Signs Your Romantic Partner Is Financially Unstable
15 Financial Steps to Take Your First Year After Graduation
8 Easy Ways to Organize Your Financial Life
How to Assemble Your Financial A-Team originally appeared on usnews.com
