It can feel pretty intimidating to sit down and talk to someone about your money – and spending. Like that latest Amazon splurge. Oops
Plus, you may be wondering how much a financial representative costs and if they’re really that trustworthy. I mean, don’t they work for someone else, too? Or maybe you’ve always managed your own money, and it’s hard to relinquish some of that control.
We get it. Working with a financial representative is a big step. But if you’re open to the idea, a financial professional can help you plan for the future, whether it’s a comfortable retirement (complete with travel!) or paying for your kids’ higher education. They’re there to help you set realistic expectations, make sure you’re on track, and help you shift directions if needed.
If you have an upcoming meeting with a financial representative, that’s a great first step. To help you make the most of your time together, we’ll explain what you should expect from a representative and what you should know going into your meeting. Here are four things to keep in mind.
1. A financial representative can help you, no matter your stage of life.
Maybe you’ve just walked down the aisle, and now you and your spouse are combining bank accounts. Nice! Or you just purchased your first home to accommodate your growing family. No matter your season of life, a financial representative can guide you. Here are a few examples.
- If you’re starting a new job: A financial representative can explain how your employer-sponsored retirement plan (401(k)) works and how to maximize your company’s matching contributions, if you have them.
- If you recently got married or moved in together: You can talk to a representative to establish a joint budget, create an emergency fund, and set combined retirement savings goals.
- If your family is growing: Whether it’s your first or third baby, a financial representative can help you set up an account for college , purchase life insurance, and connect with a legal expert to create a will or trust. Your kids deserve it, and you deserve peace of mind.
- If retirement is around the corner: As you approach retirement, a financial representative can help you maximize your contributions, limit your risk in the market, and assess the age you’re truly ready to stop working. This might involve adjusting your budget so it matches a new lifestyle, planning for future health-care costs, and purchasing supplemental insurance. You can also work with a financial representative on estate planning, which can ensure your end-of-life wishes are reflected.
2. They offer a wide range of financial services.
Truthfully, a financial representative can do quite a bit. For example, they might support you with anything from planning to pay for tuition to reducing credit card debt to buying affordable life insurance.
Here are a few financial representative services you can expect to discuss, as well as helpful tips for working together.
- Budgeting and debt management. Your financial representative should help you better manage your income and expenses, and guide you toward a reasonable, but enjoyable, lifestyle. You should also work together to reduce debt, refinance and consolidate where you can.
- Retirement planning. No matter your age, it’s never too early to estimate how much you need to save to retire comfortably. A financial representative can provide guidance to help you save enough and find new ways to earn retirement income. One day, you’ll be thankful you planned ahead.
- College planning. Your children are everything to you, and you want the best for them. Fortunately, a financial representative can help you set up a plan that can help you meet the hopes and dreams you have for their future.
- Insurance recommendations. In life, you never know what can happen. That’s why insurance exists. A financial representative can help you evaluate your insurance needs and find affordable life insurance.
- Estate and end-of-life planning. Many financial representatives partner with legal professionals to refer their clients to for help to create wills and trusts, and help you leave a legacy to loved ones. You can learn more about estate planning -- and common mistakes to avoid -- here. A Modern Woodmen representative can also assist members through our Final Wishes Resources program.*
Remember, this is just a short list of services. If you own a business or have complex tax questions, you may have other questions and more complex needs. And, depending on their expertise, your representative may pull in a Certified Public Accountant (CPA), an estate-planning lawyer or another expert to help.
3. It’s worth taking the time to find the right fit.
Trusting someone with your money is a big deal. It’s understandable to feel anxious and uneasy about handing over personal financial information.
That said, there are ways to ensure you find someone who’s the right fit. In your first consultation, look for personality traits that can make an outstanding financial representative. Take your time; you may even want to meet with two or three different people before deciding who to work with. It’s not marriage-level commitment, but it’s fairly big. Do as much research as you can beforehand so you know who you’re working with.
First, look for someone with integrity and honesty. Ask them how they’ve handled sticky financial situations in the past. The key here is to identify trustworthiness and a strong moral compass. Someone who makes recommendations before they understand your unique situation does not have your best interest in mind. Next, look for excellent communication skills. They should explain complex financial terms to you, so you fully understand your financial decisions, and be proactive when scheduling meetings. There’s nothing more frustrating than hounding someone for information.
Finally, look for a person who is patient and demonstrates empathy. They should understand how difficult it is to make decisions about money, especially as life changes. If you lose your job, start caring for an aging parent, or face a costly health issue, you need someone who will understand your situation and needs. They should be willing to answer all your questions – however many that might be!
It can take time to find the right fit. Some people just don’t mesh. Maybe you’re an introvert and they’re a conversationalist. You love the New York Yankees and they’re from Boston. Remember, it’s OK to say no to working together after an initial consultation. You’re in the driver’s seat. Keep researching financial representatives, and the right fit will surface.
4. You should come prepared to your first meeting.
You’ve scheduled your first meeting, and it’s around the corner. To make the most of the meeting, come as prepared as possible and bring financial documents. Here’s a quick checklist to help you get organized:
What to bring
- Government-issued identification (a driver’s license or passport).
- Recent pay stubs or income statements.
- Retirement plan details (401(k), IRAs, pension).
- Tax returns from recent years.
- A list of your monthly expenses (rent or mortgage information, utility bills, grocery expenses).
- Credit card statements.
- Information about debt (student loans, credit card debt, auto loans).
- Insurance policies (any life, health, long-term care or disability insurance you have).
- Estate planning documents (will or trust documents, power of attorney, health-care proxy).
During your time together, you’ll want to set realistic financial goals for your retirement, paying off debt, and more. Of course, this will depend on your forecasted income, age, and how you tolerate market risk.
You’ll also want to discuss your priorities. Bring up any aspirations you’ve been mulling over, like starting a business, making a big purchase, or saving for your kids’ college education. Also, your financial representative may ask you about your short-term goals, like saving for a vacation or renovating your kitchen. As you set these goals together, make sure they’re specific, attainable and easily measured.
There’s no better time than now
When it comes to financial planning, the sooner you start, the better. Finding a financial representative can take some time, but the right fit makes an incredible difference. Not only will you be better positioned to achieve your life goals, but you can enjoy peace of mind knowing you’re on track and working toward a better future for your family.
If you’re interested in getting started, search for a Modern Woodmen representative online. It’s easy and fast to find an experienced representative near you.
*Subject to change, fraternal programs are not part of the contract and may have specific eligibility requirements. Some programs are not available to all members.
This material is for your information only and is not a recommendation or offer to sell any product. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Modern Woodmen of America does not provide tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.