Since starting my firm, I’ve completed hundreds of financial plans and reviewed thousands more over my career. However, several headwinds exist for individuals to complete a financial plan. A few obstacles include costs, time, and complexity.
Let’s examine a few challenges to starting and finishing a financial plan.
- Costs. Many advisors charge thousands of dollars for a financial plan, a considerable amount to pay, especially since most of them use software packages from Money Guide Pro, eMoney, or Right Capital. If you’re an investor with a 401(k) plan, IRA, or brokerage account, you don’t need to pay exorbitant fees, an hourly rate, or a monthly subscription to get a solid financial plan. Our fee is a one-time expense of $800.
- Qualification. It’s common for firms and advisors to exclude investors with assets below one million dollars or incomes less than $250,000. We work with any individual who needs financial guidance regardless of assets or income.
- Insurance. Life insurance is not a cure-all, and investors do not need multiple whole-life policies, which is a common remedy if you work with an advisor at a brokerage firm or insurance agency. Warren Buffett said, “Don’t ask the barber whether you need a haircut, and be careful from whom you seek advice.” Our firm is independent, and we do not sell insurance or high-commission products and refer our insurance business to another trusted advisor if it suits our clients.
- Time. Individuals don’t want to spend weeks or months working on their financial plan, nor do they want to meet dozens of times with their advisor. We have streamlined and refined our process to deliver your plan promptly and efficiently.
- Invest. Some advisors incorporate an “invest or else” mandate concerning planning. They will provide a financial plan, but you must invest with their firm. It is a tool for them to sell you more products. Our financial plan is a stand-alone service, and you’re under no obligation to invest with our firm.
- Procrastination. Tomorrow is a threat to your financial plan. The best time to start planning was yesterday, and the second best time is today.
Planning is essential for your financial success and is at our firm’s core. We aim to remove confusion and complexity from the planning process so you can pursue a life of purpose.
Happy Planning.
Plans are nothing: planning is everything. ~ Dwight D. Eisenhower
January 18, 2024
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. Prices and yields are for today only and are subject to change without notice. Past performance is not a guarantee of future performance