certified financial planner professional | Lanning Financial https://lanningfinancial.com Thu, 19 Jan 2023 20:08:27 +0000 en-US hourly 1 https://lanningfinancial.com/wp-content/uploads/2023/07/cropped-LFI_Logo_Vertical_Small-32x32.png certified financial planner professional | Lanning Financial https://lanningfinancial.com 32 32 What Reading a Book a Week Taught Me About Financial Planning https://lanningfinancial.com/what-reading-a-book-a-week-taught-me-about-financial-planning/ Thu, 13 Jan 2022 17:46:44 +0000 https://lanningfinancial.com/?p=1284 January 2022 Last year I decided to read a book a week, which is a pretty audacious commitment for someone who doesn’t like to read. An oft-cited habit…

The post What Reading a Book a Week Taught Me About Financial Planning first appeared on Lanning Financial.]]>

January 2022
Last year I decided to read a book a week, which is a pretty audacious commitment for someone who doesn’t like to read. An oft-cited habit of the likes of Warren Buffet and Bill Gates, I was out to prove that reading a book a week wasn’t possible for plebeians like myself. Turns out, even I can do it, and with little complaint. Who knew?!

I learned a lot about my preconceived notions about reading, but this is a blog about financial planning, so I’ll tie the two together.

• Working in small increments makes a task less daunting. I’m regularly breaking down financial planning tasks for clients into baby steps that they can steadily complete. This is how the majority of progress is made. Staring at a gargantuan project (a 700-page book) is too intimidating. If you tackle tasks in 10- to 15-minute increments, the gargantuan is done before you know it.

• Don’t undervalue the power of the small. A corollary to the above lesson, people ask me all the time what’s the best strategy for saving for retirement, and I almost always respond with “early and often.” Even if you can only save $20 this month, save it. Consistent savings over time wins.

• Working on multiple fronts has value. I was never willing to have multiple books going at the same time. Unknowingly, this kept my comprehension and creativity low. This is true in financial planning, too. My clients who are, for example, working on their estate planning and their investments or are working on increasing their income and purchasing long-term care insurance see opportunities where they didn’t before, creating synthesis, vision, values clarification, and greater success where it wasn’t happening.

• Variety is good. A corollary to the previous lesson, being open to different investment types or ways to save on taxes or purchase real estate or any number of financial planning opportunities expands one’s sense of possibility, which increases one’s chances of overall satisfaction.

• There really is enough time. You have enough time to get a financial planning task done. You really do. I know you don’t want to hear this, and I know financial planning tasks are not your favorite, but “I don’t have time” is not a legit excuse. Reducing your phone use alone will generate 15 minutes this week to do something small and keep you moving forward, which will be rewarding in and of itself.

• Donations are life expanding. I fell back in love with the San Francisco Public Library and all those “little libraries” at people’s homes. Giving back warms the heart and reaffirms one’s faith and goodness in humanity. It’s also a great reminder that abundance, wealth, and richness come in many forms.

No, I don’t plan to keep up the pace of reading a book a week because I have other goals to prioritize, but I am now one of those people who is reading some book. Suggestions for my next read are still welcome. And, if you want to talk about your preconceived notions about how your financial planning just can’t be done, please reach out.

 

Lanning Financial Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
The post What Reading a Book a Week Taught Me About Financial Planning first appeared on Lanning Financial.]]> Sorting Among Money Managers and Wealth Managers https://lanningfinancial.com/sorting-among-money-managers-and-wealth-managers/ Mon, 07 Jun 2010 01:00:07 +0000 http://lanningfinancial.wordpress.com/?p=168 There are “financial planners” that hold themselves out as “money manager” or “wealth managers” or “Certified Financial Planner Professionals” or the like.  You say po-TAY-to, I say po-TAH-to. …

The post Sorting Among Money Managers and Wealth Managers first appeared on Lanning Financial.]]> There are “financial planners” that hold themselves out as “money manager” or “wealth managers” or “Certified Financial Planner Professionals” or the like.  You say po-TAY-to, I say po-TAH-to.  All these titles mean the same thing, though, right?

Find out what services are really being offered

One of the bigger issues in the financial services world these days is whether someone who handles money for another or gives or sells advice to another or sells someone a financial product should be held to a fiduciary standard.  There are different licenses to hold, different regulatory bodies, different ways of doing business, and the list goes on.  This is what makes it so hard for the government to provide uniform regulation (not to mention the power of the lobbyists) and hard for consumers to find their way.

In the mortgage business, clients learned to ask, “What is it that you do, how do you do it, and how do you make your money?”  We answer their questions. The same is true in the financial services business.  Clients need to learn to ask, “What is it that you do, how do you do it, and how do you make your money?”

Because a money manager often just manages money.  By that, I mean, this person takes a lump sum of money and keeps an eye on it and makes sure that it’s invested within the confines of the client’s needs and goals.  But that person doesn’t necessary explore what the client’s needs and goals are. That might be a different person.  A money manager often will also not provide a comprehensive look at a client’s overall financial situation and make recommendations outside managing money—for instance, the advice to get one’s estate plan done.

A wealth manager sometimes just calls him or herself that because it’s a fancy way of saying that he or she only takes clients of a certain net worth.  This person might only specialize in managing money, but often has a group of advisors that do tax and legal strategies for the client in concert with the money management services.  Yet, young people who are on their way to being wealthy may require very similar services.

By the way, everyone it seems calls him or herself a financial planner—whether they are securities licensed with no CFP® designation or are simply licensed to sell insurance.  It’s a widely abused term, just as “mortgage broker” was a few years ago until the regulatory agencies said a licensee could not use that term unless he or she actually had a broker’s license.  The same will happen with the term financial planner.  Someday.

In the meantime, get into the habit:  What is it that you do?  How do you do it?  How do you make your money?

The post Sorting Among Money Managers and Wealth Managers first appeared on Lanning Financial.]]>