Some people confidently navigate their financial world alone, while others find the guidance of a professional invaluable. So, how do you determine what’s right for you? 

Let’s break down when and why hiring a financial planner might make sense for you.

Do You Need a Financial Planner?

The short answer: not necessarily. 

Much like getting in shape, you don’t need a personal trainer to achieve your fitness goals. There are plenty of resources, books, videos, online courses that can teach you how to budget, invest, and plan for the future. If you have the time, discipline, and willingness to learn, you can certainly go the DIY route.

However, just like working with a trainer can help you avoid common mistakes, a financial planner can save you from costly missteps. Financial professionals have the expertise to see potential pitfalls you might overlook, ensuring your money is working efficiently for you. They provide guidance, accountability, and strategies to help you reach your goals faster and with less stress.

Why Hire a Financial Planner?

Managing your finances isn’t just about making money, it’s about making smart choices with the money you have. From investing and tax strategies to estate planning and major life decisions, financial planning involves many moving parts. Some people prefer to handle it themselves, while others find value in working with a certified financial planner who can provide expertise, guidance, and accountability.

So, how do you know if hiring a financial planner is the right move for you? If any of the following scenarios sound familiar, you may benefit from working with a professional who can help you navigate the complexities of personal finance.

1. You Don’t Have the Time or Desire to Become a Financial Expert
   Many of my clients care deeply about their financial well-being, but they simply don’t want to spend their weekends studying investments, tax strategies, and estate planning. They prefer to focus on their careers, families, and personal interests while knowing their money is being managed by someone who does this every day.
2. You Want the Convenience of an Expert’s Guidance
   Financial planning isn’t just about investing. It’s about structuring your money in a way that aligns with your goals. A financial planner helps simplify complex decisions by organizing information and presenting it clearly. Instead of spending hours researching what applies to your situation, you can rely on an expert to provide tailored advice.
3. You Need Help Coordinating Financial Decisions
   Finance can be a foreign language. A financial planner helps translate complicated terms into understandable information. More importantly, they coordinate with other professionals, CPAs, attorneys, and estate planners to ensure all aspects of your financial life are working together.
4. You Want Accountability & Follow-Through
   Making a decision is one thing; implementing it is another. Financial planners help ensure that action items, like transferring funds, adjusting investments, or updating estate documents actually get done. It’s easy to put off financial tasks, but having a planner keeps things moving forward.

When Should You Hire a Financial Planner?

While hiring a financial planner early can be beneficial, there are key life events where professional guidance is especially valuable:

• Getting Your First Job: Setting up retirement accounts, budgeting, and understanding benefits.
• Getting Married: Merging finances, tax planning, and discussing long-term goals as a couple.
• Having Kids: Planning for childcare, education savings, and estate considerations.
• Changing Jobs or Losing a Job: Managing income fluctuations, benefits transitions, and retirement savings.
• Buying a Home: Understanding mortgage options and affordability.
• Supporting Aging Parents: Navigating healthcare, caregiving costs, and financial responsibilities.
• Sending Kids to College: Planning for tuition costs and financial aid strategies.
• Starting a Business: Structuring business finances, taxes, and personal liability.
• Preparing for Retirement: Transitioning from earning to withdrawing money efficiently.

If any of these situations apply to you, working with a financial planner can help you make well-informed decisions that align with your long-term goals.

Who Typically Initiates the Conversation?

Interestingly, in many households, one person often takes on what I call the “invisible labor” of financial planning. This is the person who ensures bills are paid, appointments are scheduled, and important financial tasks don’t fall through the cracks. In many cases, this is the same person who reaches out to financial professionals to get things in order.

While this role often falls to women, especially in traditional heterosexual couples, every family dynamic is different. What’s important is recognizing that financial planning is a team effort, and getting professional support can take the burden off the person who has been managing everything behind the scenes.

The Value of Expert Guidance in Financial Planning

Hiring a financial planner isn’t an admission of financial incompetence, it’s an acknowledgment that expert advice can lead to better outcomes. Whether you’re considering giving money to your kids, preparing for a life change, or simply want peace of mind, a financial planner can provide clarity, efficiency, and confidence in your financial decisions.

If you’re uncertain about your next financial step, consider consulting a financial professional who can help tailor a strategy to your unique needs. And remember, financial planning is an ongoing journey. Stay informed, seek expert advice when necessary, and take proactive steps toward securing your financial future.

If you found this helpful, follow Lanning Financial for more insights or reach out with your questions. Your financial well-being is worth the investment in knowledge and expert guidance.

Jessica Lanning, CFP®

Email: jessica@lanningfinancial.com
Phone: (415) 354-5699
LinkedIn: linkedin.com/in/jessicalanning
YouTube Channel: Lanning Financial on YouTube

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.

My favorite was Oreo.  In her last year, she would curl up in the bend of my elbow and lean her soft, warm, little body against my rib cage, and I would stroke her back and her head for sometimes up to an hour.  Sounds kinda sweet, doesn’t it?

The 529 Is Not the Perfect Pet

Like pet rats, the 529 plan is billed as a perfect investment.  Put in after-tax money, let it grow tax-deferred, and if you pull money out under prescribed rules, the withdrawals are tax-free.  You probably know someone who had a great experience with one.  What’s not to like?

Problem is, you don’t know until you’re knee-deep into the commitment.

Here’s what’s not great about pet rats:  The cage will take up more space that than you care to relinquish, their urine and feces still smells, cleaning the cage takes up a lot of time, the kids likely won’t help like they promised, and vet visits are pricey if you can even find a vet who can treat a sick rat.

Here’s what’s not great about 529 plans:  Just because you funded one doesn’t mean your kid goes to college, you can typically only change investment options once a year, it will likely not cover all of the college costs, and spending the money on the “wrong” things costs you penalties and possibly higher taxes.

For you, the 529 cage might be the wrong size, smelly, and your kids may be no help at all.

Alternatives to the 529

I think what people like about the 529 plan is that it is money specifically set-aside for college.  There’s something mentally appealing about the segregation, and it’s harder to raid the funds in a weak moment when it has little Lizzie’s name on it.

But there are lots of other ways to accumulate assets that can be psychologically earmarked as a college fund:

• A stock/bonds account that can be later transferred to a child to pay for college or pay off student loans.
• Real estate is hugely popular, especially if purchased before a child is born or is very young. Use the rental income or sale proceeds to pay for college.
• Being self-employed and employing your child during the summer has wonderful tax benefits for college funding.
• Some retirement plans allow for withdrawals for college expenses without penalty. You can fund these for your kid if they work while in K-12 and have earned income.

This list goes on.

The 529 is not the be-all-end-all of funding a college education.  If you are going to use one, be judicious about how much you put into it.  While the rules around 529 money have changed over the years (you can even fund a Roth with them now under the right circumstances), the last thing you want is money earmarked for college that will never be used for such.

Focus on the Outcome You Really Want:  A Happy Kid

We loved our rats, but in truth, what we all really wanted was a dog.  At the time, I was unwilling to take on the responsibility or the commitment.

What you probably really want is for your kid to grow up to be successful, confident, resilient, financially self-sufficient, and happy.  College may or may not be part of that path.

I suspect that what you really want for yourself is to grow up to be funded for retirement, confident, financially self-sufficient, and happy.  Flexibility and options are key, and the 529 doesn’t have much flexibility or options.  Choose it wisely.

If you want to talk more about college funding, 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.

When we look just at the numbers from 2009, it feels and seems like a great year.  But it’s been tough—more regulation, daily underwriting guideline changes, new rules around appraisals, and loan files that are scrubbed with a toothbrush.  We’re lucky to be able to channel our loans through a company that has had the foresight and fortitude to survive, but it’s been twice the work for half the money.  And it’s getting worse.

The unfortunate part about all these changes is that they don’t serve the consumer at all.  Loans take more time and are more expensive.  There are fewer options in loan products and lenders.  The paperwork and the confusion have only increased.

The good news in this is that the market and the increased regulations have driven out the bad apples in the business.  There’s no more low-hanging fruit, so those who didn’t know what they were doing or were doing it badly have long since left the business.  In a way, the market alone has solved a lot of the problems that were created in the subprime and “stated income, stated assets” loan profile industry.  Those of us who continue to run a high quality business have survived.

The sad part about it is that I’m starting to see the really good people—true mortgage professionals who provide great advice and care for their clients—start to consider leaving the business.  The loan process is too complicated and sophisticated for anyone to learn in a 60-day escrow. Most financial planners understand the basics of loans, but often rely on mortgage professionals to help them integrate the loan choice into a client’s overall long- and short-term financial plans.  Where will good advice come from if not from a seasoned mortgage professional?

What can you do?  If you’re politically inclined at all, write your Congress representatives and tell them that you believe the Federal Reserve’s proposal to fix the income of mortgage professionals on any size loan will not serve consumers (particularly those with lower loan amounts), that you appreciate the work of mortgage brokers and bankers, and that the regulations put in place so far have not served the industry well.