Why You Should Be Your Own Financial Planner


Financial planning can be overwhelming to those who are new to the topic. However, you don’t have to have your MBA to manage your own finances; in fact, a financial planner will most likely not have an MBA and may have a background in a field such as insurance sales, not investing. Many financial planners today do decide to become Certified Financial Planners, which means that they have to complete a battery of testing on financial topics including estate planning, investing, and the law.

However, you probably don’t need to know about all aspects of financial planning and may be able to put together your own do-it-yourself financial planning program with a little bit of research into the topics that you need the most help with. You can not only save yourself a lot of money by being your own financial planner, as fees can be quite extensive, but you can be assured that your best interests are taken into account when you become your own financial planner.

Although I have my MBA and have an interest in personal finance issues, I was curious about how a financial planner would get started in looking at a potential client, so I decided to purchase the book “Getting Started as a Financial Planner” by Jeffrey H. Rattiner.

Touted as the guide to becoming a financial planner, I thought that I would gain great insights into the financial planning field. Instead, I was disappointed as the book gives a slight overview of each of the facets of financial planning and greatly infers that financial planners greatly rely on worksheets that anyone can find on the internet in order to complete your financial plan. Often, you’ll find that these worksheets rely on assumptions that may or may not correspond with your individual situation, which is quite disconcerting considering that many people feel that they are receiving an individualized financial plan when in fact they may be getting a “one size fits all” financial plan instead.

For example, in completing the retirement planning worksheet given in the book, an inflation rate of 4.5% and a return on investment of 7.5% are assumed, both of which are very conservative and may lead you to think that you are not saving enough for retirement when in fact you are saving plenty.

So, where should you start in trying to do your own financial planning? Before getting started, you’ll want to educate yourself in the various topics of financial planning. Yahoo! Finance is a great resource on many of the areas of financial planning, including investing, retirement planning, and insurance. The site provides insights from financial experts, as well as calculators and how-to guides for budgeting, taxes, and retirement and investing in general. You may also want to consult books on financial planning. There are so many different opinions on financial planning outlooks that you may want to browse through books in the library first in order to find a style and approach that works for you. By educating yourself in the field of financial planning, you can easily become your own financial planner!

It is the best method to save as much as you can for the future even today where people that are into jobs know it’s true value, which prevents them from squandering them on frugal expenses and managing wealth is the top priority of a good financial planner that is planning and managing his own finances and serving as an inspiration to others at the same time.