There is No Better Time to Start Planning Than the Present

You want to prioritize saving for your kid going to college, but it’s challenging.  With so many other competing financial goals like maintaining an emergency fund, paying off debt and planning for retirement, it’s easy to get overwhelmed.  You have limited financial resources, so you want to strategize to maximize the dollars going to each of your financial goals. 

Yes, you can do it yourself like so many others do.  But could you imagine the stress release of working with a financial planner who can add their expertise to help you to improve your strategies?  Here are a few things to consider to decide if finding a financial planner makes sense for you.

Your Investment Size

Some financial planners seek families with assets of $100,000 or more, whereas others have higher asset size requirements.  We are not talking just about college savings.  The amount of assets include stocks, bonds, mutual funds, retirement accounts and other investments.  Remember that most financial planners want to review the holistic picture of your family's financial health and understand your short and long-term financial goals.  Although you may have been motivated to look into a financial planner because of college savings, they can help you with each of your financial goals. 

If you have less than $100,000, then it may not be the best time to work with a financial planner.  In this case, ensure your college savings and other assets are in low-cost savings vehicles like money markets, self-directed 529 college savings plans, or - if you are a bit more adventurous - consider investing in some index funds. 

Impartial Advice

A lot of DIY investors consider themselves financially savvy but just know that it takes time to do research.  This can have great outcomes, but sometimes people mix their emotions or just time limits into their financial decision-making.  Professional financial planners take an impartial approach when looking at your income and assets.  They often may be able to spot overlooked financial strategies that could save you tax dollars or increase your earnings. 

Seek a financial planner with credentials like a Certified Financial Planner (CFP), Personal Financial Specialist (PFS), Chartered Financial Analyst (CFA), Chartered Financial Consultant (ChFC), or Certified Family Business Specialist (CFBS).  Each credential requires that the planner has a proven level of competency within financial planning and investing.  For instance, a CFP must pass exams testing their knowledge of investment, tax, retirement, and estate planning plus show knowledge of employee benefits and insurance.   Plus, to maintain the credential, financial planners need to continue to learn through certification approved coursework and exams.



Cost for the Advice

Typically, there is a cost to work with a financial planner.  Some are “fee-only” or “commission-only” basis, or a hybrid of both.   Fee-only means that you pay an hourly rate, whereas commission-only means that the planner makes money on the products they sell. Fee-only may cost you from $100 to hundreds of dollars per hour.  In contrast, the financial planner may earn between .5% to 1.25% commission on products that include insurance, mutual funds, and annuities that you use for your financial strategy.

Looking for a Financial Planner

If you have decided that now is the time to seek a professional to help with your college savings strategy as well as your other financial goals, then consider our friends at The College Funding Coach®.  They have a team of financial advisors specializing in helping families better understand the complex strategies for paying for college and making higher education more affordable. Plus, they have the credentials to help with all your other financial goals.  The good news is that they will schedule a free consultation to help you decide if you’d like to work with them.