Financial Success – Personal Financial Planning

This is my third posting on Financial Success. Here are my three methods for financial success: 

• Pay-yourself-first
• Life insurance
• Personal financial planning

Personal Financial Planning

You should consider working with a personal financial planner. The financial planner should be able to help you with the pay-yourself-first plan and life insurance.

The financial planner relationship should be considered a partnership, one which could start from your first job and continue for the rest of your life. You will be paying him a fee so you should get personal service. The service your financial planner provides should be similar to the service he provides for his own family. Don't be afraid to ask questions. Don’t be afraid to ask what he would do for his family.

Your personal financial planner will help make educated investment choices. Choose funds with the lowest investment cost. Balance the funds as they get out of balance. Review your portfolio on a regular basis. The financial planner should let you know if you are on track.  He will know about new funds and new tax strategies. These are items you may want to be aware of, but you don’t have to do the research.

In a long-term relationship, your personal financial planner will know your goals. He will know your family and its goals. Does anyone want to go to university? Do you want to build a cottage? Do you want to travel?

Choose a financial planner who charges a low cost for investment management. Management fees should be between 1 and 1.5 percent. These fees will typically decline as your investment portfolio grows.

Are you considering a bank for investment management? Typically higher management fees are charged at the banks and there is no long-term personal relationship.

I have had my relationship with my personal financial planner for about 23 years. Our most recent review shows our pay-yourself-first plan is working well and we are on track to retire as planned. I also have term life insurance to keep my family covered until my wife retires.

Thanks, Bruce.

@BruceFightsTTP