A lot has changed in the past few weeks, both in terms of expectations for interest rates and lost confidence in the health of the banking system as a result of the sharp rise in interest rates that has led to some things “breaking,” as we wrote about here last week. Here we share some thoughts on who’s to blame for the ongoing banking crisis and reiterate how we are telling investors to adjust, or not adjust, their asset allocations in light of ongoing market volatility.
Secure 2.0 Updates: Changes to Know for Retirement
As part of the fiscal 2023 spending package, Congress passed SECURE 2.0 to incentivize retirement savings. These changes could create opportunities for your retirement savings strategy. We will do a brief overview highlighting the key changes you need to know about, including tax credits, required minimum distributions, catch-up and self-correction, contributions, and rollovers.
Brian Bohnsack, Senior Vice President, and Mike Rogers, President of 360 Financial, will guide you through the changes and how they impact you and your retirement.
Mike and Brian guide you through recognizing 2022 imbalances that had built in the economy and setting ourselves up for what comes next as the economy and markets find their way back to steadier ground—even if the adjustment period continues.
As you watch, if you have any specific questions or concerns, please don’t hesitate to reach out to our team!
When you start to get serious about pursuing financial independence, you’ll probably begin to wonder about the difference between “financial planning” vs. “financial advisor.” Similar terms can cause confusion, but we’re here to help you understand these terms and their differences.
You have a financial goal but don’t know what steps to take to reach that goal. That’s where financial planning comes in: Financial planners help you create an actionable, achievable financial plan to help you meet your goals. A financial planner can help you reach long-term goals related to:
Budgeting
Saving
Retirement planning
Investing
Insurance
What Does a Financial Planner Do to Help Their Clients?
A financial planner creates long-term programs to help their clients reach their long-term financial goals. They help you chart a course for your life as it relates to your finances, analyzing every aspect—such as your savings, taxes, expenses, and investments.
Goals a financial planner can help you achieve include:
Saving to fund your child’s college education
Buying a new home
Saving to retire comfortably
Increasing profitable investments
One key aspect of a financial planneris that they provide targeted services. You’ll come in with a specific goal in mind, and they’ll help you reach that goal.
What Designation Does a Financial Planner Have?
Typical designations of financial planners include:
Certified Financial Planner (CFP)
Chartered Financial Analyst (CFA)
Chartered Financial Consultant (ChFC)
Certified Investment Management Analyst (CIMA)
Make sure your financial planner has at least one of these designations before moving forward with them. The term “financial planner” is an unregulated umbrella term, so you’ll want to be sure that they have the proper designations before trusting them with your financial future.
Now that you have a full understanding of financial planners, we’ll dive into the difference between them vs. a financial advisor.
What Is the Difference Between a Financial Planner and Financial Advisor?
The difference is that while a financial planner helps you with a very specific goal, financial advisors are broader in their approach. Financial advisors typically offer the same services as financial planners, but they offer even more, including managing your investments.
Another key difference between financial planners vs. financial advisors is how you pay them. A financial planner will typically charge a flat hourly or annual fee, while a financial advisor often earns a commission on investments or products they sell. Some financial advisors earn a combination of commissions and flat fees, and others may charge a percentage of your overall portfolio per year.
Now, we’ll dive further into what exactly a financial advisor does to help you further understand the difference.
How a Financial Advisor Helps Their Clients
While a financial advisor offers similar services to a financial planner, they also offer even more services, including:
While a financial planner will create your plan, a financial advisor will provide more hands-on services actually to help you execute that plan.
Designations a Financial Advisor May Have
If a financial advisor is working with the public, they are required to hold a FINRA Series 65 license. On top of that license, they may also hold other financial certifications that are similar to those of a financial planner. These may include:
Certified Financial Planner (CFP)
Chartered Financial Analyst (CFA)
Chartered Financial Consultant (ChFC)
Certified Investment Management Analyst (CIMA)
The main designation to look for in a financial advisor is the FINRA Series 65 license.
Do I Need a Financial Advisor or a Financial Planner?
Choosing between a financial advisor and a planner will look different for everyone. The right fit for you depends on what your individual needs are. Before we jump into how to decide, remember that your needs will probably change over the course of your life. While one may be the best fit for you now, you may want to switch in a few years.
A financial planner is best for you if you:
Want help developing a long-term financial plan, but don’t need help implementing that plan
Want to understand how your finances will evolve over your lifetime
Have gone through a major life change, such as getting married
Need help managing debt, saving for college or retirement, or minimizing expenses
Need help strategizing about asset transfers
A financial advisor may be the best fit for you if you:
Are looking for help implementing your financial plan
Don’t want to or don’t feel comfortable making financial decisions
Are looking for occasional financial guidance
Need help with a specific investment strategy
Again, your situation will likely change over your lifetime, so your decision isn’t permanent. You can always change your mind in the future.
Do I need to find a financial advisor or planner locally?
No, you don’t need to find a financial advisor or planner locally. In fact, doing so can be extremely limiting. The best fit for you may be just a Zoom call away, so don’t be afraid to consider financial advisors or planners that aren’t local.
What is the cost of working with a financial advisor?
Financial advisors can charge for their services in a few ways:
Flat hourly ($100 – $400 per hour) or annual fee (ranging between $2,000 and $7,500 per year)
Commission on investments or products (a certain percentage)
A certain percentage on your portfolio (typically 0.25% to 1% per year)
It all depends on which financial advisor you choose, and how they charge for their services.’
Key Takeaways
A financial planner creates a plan, while a financial advisor creates your financial plan AND executes it.
A financial planner offers targeted services, while a financial advisor can help with more general financial services.
Choosing a financial planner vs. a financial advisor depends on your specific circumstances and needs, and these may change at any time.
Looking for a financial planner or advisor locally limits your options and may stop you from finding the best fit.
Next Steps
When you’re looking for a financial advisor, look for one that puts your needs first. At 360 Financial, we have a process centered around you, your goals, and what matters to you. We want to get to know you and your family, your financial goals, and any frustrations you have.
If you decide to work with us, we’ll mutually decide if there’s a comfortable fit—after all, we want to make sure your needs are being met. Book a 15-minute introductory call with 360 Financial today.
Top Financial Planning Articles
Want to keep learning about financial planning? Keep reading:
This article has been reviewed by Mike Rogers, 360 Financial President and Founder of Wayzata-based 360 Financial. Prior to establishing the firm in 1995, he spent seven years with two of the nation’s largest investment firms. As a fiduciary, he utilizes his 30+ years of experience to plan and implement strategies tailored to address the issues and concerns of qualified retirement plan trustees, high-level professionals, and thriving business owners.
Mike holds the series 7 and 63 security registrations with LPL Financial. He served six years on the Benilde-St. Margaret’s Board of Directors, chairing the Investment Committee for many of those years. Through his membership in the Twin West and Wayzata Chambers of Commerce, he is able to better support business owners. And belonging to the LPL Financial Chairman Club and the Financial Planning Association allows continual support for the financial industry.
Schedule a Call
At 360 Financial, you and your financial goals come first, always. We’ll help you understand all the pieces of your financial puzzle, and work toward your financial goals for long-term success. Book a 15-minute introductory call with us today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Wealth management advisors help you follow your dreams—whether that be retirement, a college fund for your child, or traveling the world. If you want to pursue your dreams, you’re probably wondering how to find a wealth management advisor. We’ll be diving into your question today.
How to Find a Wealth Management Advisor You Can Trust
Before you look for a wealth management advisor, you have to know what it really is. The definition of “wealth management” varies from company to company, and from advisor to advisor. No matter what advisory firm you turn to, make sure you understand what their definition of wealth management is—and if it will truly help you manage your wealth.
At 360 Financial, our wealth management advisors look at you and your family’s finances holistically. Our goal is to help our clients get their finances in order—ultimately helping them feel more confident and happy.
Our wealth management services include:
Meaning-of-life questions on life goals, money, and values alignment
Comprehensive and long-range wealth management and financial planning
Education planning and funding (college planning)
Estate planning and estate tax planning
Generational wealth
Investment advice and management
Philanthropic planning and charitable giving
Retirement goals and planning
Risk management
Specialist referrals
Tax planning & strategies
How To Choose a Wealth Advisor
Finding the right wealth advisor helps you shift your mindset toward finances. You’ll look toward the future with confidence and optimism, knowing you’re breathing your dreams to life. Choosing the right wealth advisor is essential.
Here are our steps to help you choose the best wealth advisor:
What does wealth managementmean to you? Find an advisory firm that agrees with your definition.
What do you want in a wealth advisor? Find one who offers those services.
What wealth management services are most important to you? Look for an advisor with related experience.
Think about how you would like your relationship with your wealth advisor to be structured—then ask potential advisors questions, to see if their vision aligns with yours.
Look for an advisor who listens to you and is empathetic to your needs.
Ask wealth advisors personal questions, such as, “What do you like to do for fun?” or “What do you enjoy most about managing wealth?” These questions can help you see if you mesh well.
Consider the advisor’s client testimonials, or ask family and friends for their recommendations.
While finding a wealth manager can take time, you’ll be glad you looked for the right one you can trust down the line. After all, managing your wealth is an important task, and you need someone who can help you reach your goals—without stress.
At 360 Financial, we pledge to serve your needs with the utmost respect, earn your trust, and uphold your best interest. Here, we build intentional relationships, and many of our clients become lifelong friends.
Common Questions about Working with a Wealth Management Team
What Is the Typical Fee for a Wealth Manager?
Many wealth managementfirms have sliding scale fees. Typically, the more assets you have with the advisory firm, the lower the fee. You can expect to pay a certain percentage of the money you have with the firm—for example, maybe 1% or 2%. These fees will vary greatly, depending on which firm you choose.
Are Wealth Management Advisors Worth It?
Wealth management advisors are worth it, because with their help, you can pursue your goals confidently. Great wealth advisors simplify, clarify, and customize your investment approach. Ideally, their plans will be easy to understand, answering all your questions and providing a roadmap.
The fees are increasingly worth it the more wealth you have. However, wealth management benefits everyone, in all walks of life. You’ve worked hard to become successful, and you deserve the right guidance in seeking to ensure your assets are protected.
How Much Money Should You Have to Hire a Financial Advisor?
If you have over $750,000 in investable assets, then you should definitely consider hiring a financial advisor. However, anyone can hire one, no matter what your financial situation is. If you have less investable assets, you may have to pay higher percentages.
Key Takeaways:
Focus on finding a like-minded financial advisor in terms of:
Wealth management
What a wealth advisor offers
Relevant experience
Client relationship
Interests outside of work
Consider client testimonials, or ask family and friends for advisor recommendations
At 360 Financial, your needs come first, and we create a customized, financial plan for you. Your financial well-being and needs always come first.
Next Steps
At 360 Financial, we build relationships based on trust, communication, and chemistry. We want to get to know you, your financial goals and dreams, and any frustrations you’re facing. When you work with us, we mutually decide if there’s a comfortable fit—after all, we just want what’s best for you.
Book a 15-minute introductory call with 360 today.
About the Author
Mike Rogers
Mike Rogers, President, is the founder of Wayzata-based 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the client with empathy, integrity, and honesty. This unique, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.
In other words, Mike understands that money is not the end all be all, instead it’s the “how” that fuels the “why” to the question: “What’s important to you?”
At 360 Financial, our clients come first. You deserve personalized attention from an advisor at our firm. You’ll be happier and more confident to know that your needs always come first. Book a 15-minute introductory call with us today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
In a time where financial instability is a huge concern, you may be wondering, “How does wealth management work?” This is a great question. When you start building wealth, the last thing you want to do is put it in a savings account that doesn’t make any interest.
In contrast, wealth managers make your assets and wealth work for you.
Sounds too good to be true? Keep reading while we explain wealth management and how it can benefit your finances.
Wealth managers help you not only save your wealth but also build upon it. They look at your financial goals and help you pursue financial freedom and security. Wealth managers help you manage your assets, invest wealth, and preserve wealth for future generations.
A wealth manager will help you set up an investment plan that suits your goals and risk tolerance. They can advise you on how to achieve your goals by providing specific investment recommendations. They’ll help you make informed decisions about how your money is being invested.
How Is a Wealth Manager Different from a Financial Planner?
While financial planners consider a broader vision of your finances—from insurance to everyday expenses—wealth managers might only focus on assets, investments, will and trust services, andestate planning.
At What Point Do You Need a Wealth Manager?
The higher your assets are, the less you’ll have to pay a wealth manager. That’s why typically only affluent people invest inwealth management. Wealth managers typically only serve high-net-worth individuals (HNWI), which is those with over $750,000 in assets.
Are Wealth Management Fees Worth it?
The truth is: It’s impossible to be an expert in everything. Wealth managers take the financial stress off your shoulders by giving you the knowledge and advice you need to continue building your wealth responsibly.
However, if you’re not a high-net-worth individual, wealth management fees are probably not worth it. In those cases, you can seek a financial planner.
Wealth Management Process
If you want to understand how wealth management works, here are the steps that a wealth manager will take:
Meet with you to understand your goals, needs, and financial situation.
Research investment options to find those that align with your goals and needs.
Create an investment plan based on your preferences, goals, and risk tolerance.
Collaborate with you and making sure you’re comfortable with your plan.
Manage your investments over time.
Monitor your financial progress and make changes as needed.
You’ll be in communication with your wealth manager throughout the whole process to ensure your needs are met.
Key Takeaways:
Wealth management is for affluent people who need comprehensive wealth management services.
Your wealth management plan will be specific to your financial goals and needs.
Wealth managers help you invest and build your wealth.
Next Steps
At 360 Financial, we take the time to get to know you and your goals. We create a customized financial strategy to help you reach those goals. We’ll work with you every step of the way.
About the Author
Mike Rogers
Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This unique, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.
In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”
At 360 Financial, we believe that every client deserves personalized attention from our team of experts. You can be confident in knowing that your financial needs are our first priority.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
How do business owners plan for retirement? What is the best way to save for retirement when self-employed? As a sole proprietor, with employees, how do you develop an exit strategy or succession plan for your business? Mike Rogers, President of 360 Financial, will guide you through essential steps you should take as an entrepreneur to plan for retirement, save when self-employed, and develop an exit strategy for your business.
As you watch, if you have any specific questions or concerns, please don’t hesitate to reach out to our team!
Fleming Investment Group has merged with 360 Financial! Together, we can all provide a broader range of services than previously managed. We’re excited to announce that as of September 8, 2022, both firms will be operating together.
We continue to enrich lives through values-based principles for our clients, employees, and team members. By living and breathing six core values: confidence, going above and beyond, positivity, problem-solving, community impact, and integrity, we hope to achieve your genuine satisfaction as we help you pursue your aspirations.
We are very excited to offer expanded services, a wonderful team, and an entire disciplined financial services team to support you and your family’s financial needs.
You can now choose between one of two convenient office locations. The additional team members strengthen our bench as we continue to grow and remain on the 2022 Inc. Magazines Best Workplaces list. 360 financial made the list of 475 companies, is one of 35 companies in the financial industry, and is the only one based in Minnesota.
Warmest welcome to the new 360 team members; Brian, Danielle, Naomi, and Patty!
Fleming Investment Group has been compensated in connection with this merger. Clients are under no obligation to remain with Brian Bohnsack in connection with the merger.
Download Your FREE Copy of Our Minnesota Estate Planning Checklist
Do you know what kind of legacy you want to leave? Estate planning isn’t about death. It’s about your happiness, your family’s happiness, and leaving a positive legacy. Mike Rogers, President and founder of 360 Financial, will uncover four estate planning secrets to help you understand the opportunity estate planning creates, the power of big picture planning, and your ability to leave a positive legacy.
As you watch, if you have any specific questions or concerns, please don’t hesitate to reach out to our team!
360 Financial, Inc. Named to Inc. Magazine’s Annual List of Best Workplaces for 2022
360 Financial Inc. has been named to Inc. magazine’s annual Best Workplaces list. Featured in the May/June 2022 issue, which hits newsstands on May 17 and is prominently featured on Inc.com, the list results from a comprehensive measurement of American companies that have excelled in creating exceptional workplaces and company cultures in a physical or virtual facility.
360 Financial is a locally owned, boutique wealth management firm specializing in business owners, thriving families, and top-of-their-field professionals. The company’s mission is to enrich lives by navigating life’s impactful financial events. We learn and understand what is most important to our clients, and we align their values-based life objectives to their financial goals.
We use this enriching and values-based principle for our employees and team members, living and breathing six core values: confidence, going above and beyond, positivity, problem-solving, community impact, and integrity. On the Best Workplaces list, 360 Financial, Inc. is one of 35 companies in the financial industry and the only one based in Minnesota. It is the only wealth management company on the list of 475 companies.
“A round of applause to each of our team members. This award only happened because they all positively contribute to our core values and culture. What a tremendous acknowledgment of the teams’ commitment!” noted Mike Rogers, president and founder of Wayzata-based 360 Financial. “If we treat our team this well, think how well we treat our clients!”
After collecting data from thousands of submissions, Inc. selected 475 honorees this year. Each nominated company took part in an employee survey conducted by Quantum Workplace, which included topics like management effectiveness, perks, fostering employee growth, and overall company culture. The organization’s benefits were also audited to determine the overall score and ranking.
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