Retirement Planning for Self-Employed People

Written by Mike Rogers, Founder and President at 360 Financial

Retirement planning for self-employed people may seem very overwhelming. When you have a full-time job, your retirement planning is in the form of a 401(k). But when you’re self-employed, the path is less cut and dry. However, with proper planning, you can retire just as early as
someone with a 401(k).

This article explains how to plan for retirement if you’re self-employed.

TABLE OF CONTENTS

  1. How to Plan for Retirement When Self-Employed
  2. Retirement Options for Self-Employed People
  3. What retirement plan works best for someone who is self-employed?
  4. Can a self-employed person have a 401(k)?
  5. How to open a 401(k) without an employer?
  6. IRA for Self-Employed People
  7. Best Retirement Plans For High-Income Self Employed People
  8. Best Retirement Plans for Self-Employed People with Employees
  9. Best Retirement Plan for S Corp Owners
  10. How Do I Set Up a Self-Employed Retirement Plan?
  11. Key Takeaways
  12. Plan for Retirement at 360 Financial

How to Plan for Retirement When Self-Employed

You don’t have an employer offering a 401(k), but saving for retirement is essential. You don’t want to work forever, and you won’t be able to keep working as you age. Saving now is key to help you retire, relax, and afford a home care facility in your future. Think of saving for
retirement as self-care for your future self.

Planning for retirement when you’re self-employed starts with knowing your options.

Retirement Options for Self-Employed People

The freedom of self-employment offers options. Just like you can choose how to run your business, you also have to choose what retirement account you want to open. Pick one of these:

  • Traditional or Roth IRA: IRAs are a great option if you’re just starting out and have no employees. If you just left a full-time job, choose an IRA, because you can roll your old 401K into a Traditional or Roth IRA. Both types of IRAs offer tax benefits. The contribution limit is $6,500 in 2023.
  • One-Participant 401(k) i.e. Solo 401(k): This is another great option for self-employed people who have no employees, and these can also cover your spouse. These plans have the same rules and requirements as any other 401(k) plan. The contribution limit in
    2023 is $22,500, but if you’re over 50, you can contribute $30,000.
  • SEP IRA: If you have an established business with no or a few employees, the SEP IRA is a great choice. If you have employees, you will have to contribute the same percentage for each employee—including yourself. You’ll be treated as an employee in this case. You also have to give contributions to every eligible employee, but the burden of making contributions is entirely on you. In 2023, you can contribute the lesser of $66,000 or up to 25% of compensation or net earnings. You do have a limit of $330,000.
  • SIMPLE IRA: If you have a large business with up to 100 employees, we recommend the SIMPLE IRA. This retirement plan allows employees to contribute as well. This is an easy account to open, but you make mandatory contributions to employee accounts. This may be costly if you have a lot of employees. You can contribute up to $15,500 in 2023.
  • Profit-Sharing Plan: If you have a lot of employees, we recommend a Profit-Sharing Plan. This allows you to contribute what you want to employees. However, only you will contribute to this plan, not your employees. If you have a profit-sharing plan, you can also have other retirement plans.
  • Money Purchase Plan: Another option is the Money Purchase Plan. This is a good option if you have a lot of employees. This plan allows you to grow big accounts, but you do have contribution requirements you have to follow. You’ll have to contribute certain percentages of employee’s salaries, but this may mean highly compensated employees get a lot more.

As you can see, you have a variety of options when it comes to planning for retirement. We recommend researching your options, and focusing on what type of plan is best for you at this stage in your career. You can always open a different type of account down the road.

If you do decide to work on your personal financial plan alone, here’s what you can expect.

What retirement plan works best for someone who is self-employed?

There’s no one-size-fits all for self-employed retirement planning. It truly depends on you and your business. Generally, if you have no or few employees, we recommend:

  • A Traditional or Roth IRA
  • One-Participant 401(k) i.e. Solo 401(k)
  • SEP IRA

If you have a business with employees to consider, choose from:

  • SIMPLE IRA
  • Profit-Sharing Plan
  • Money Purchase Plan

Again, it all depends on your circumstance. If the choice isn’t clear as you research these options, you can always work with a financial planner or advisor to help you.

Can a self-employed person have a 401(k)?

Yes. Although you won’t have an employer-sponsored 401(k), you can still have a 401(k).

How to open a 401(k) without an employer?

Open up a One-Participant 401(k) i.e. Solo 401(k). You can also share this account with your spouse. It will work similarly to any other 401(k).

IRA for Self-Employed People

An IRA is a popular choice among self-employed people. You’ll enjoy tax benefits with every type of IRA, but what tax benefits you will reap depends on what type you choose. For example, with a Roth IRA, you reap tax benefits when you withdraw the money in your retirement. With a
Traditional IRA, you’ll get the tax breaks when you put it in.

Overall, IRAs are great because they have less restrictions when you want to take the money out early. You’ll also have less restrictions when you retire. Also, if you’re a disciplined saver, you’ll often be able to have more money in retirement than other types of accounts.

If you have a few employees, you can open up a SEP IRA. If you have more employees, open up a SIMPLE IRA.

Well-Positioned Retirement Plans For High-Income Self Employed People

If you earn more money, we highly recommend a SEP IRA. With this type of account, your annual contribution cannot exceed the lesser of 25% of your total compensation or $66,000 in 2023. Obviously, you can contribute a lot more per year than someone with a Traditional or Roth IRA—they can only contribute $6,500 in 2023.

If you have employees, we recommend the Profit-Sharing Plan. This is because you can contribute what you want to your employees, and that doesn’t have to be equal to yourself. If you want to save a great amount for yourself, you have more freedom to do so with this plan.

Better Suited Retirement Plans for Self-Employed People with Employees

If you have employees, certain types of plans won’t be ideal for you. Here are the options we recommend choosing from:

  • SIMPLE IRA
  • Profit-Sharing Plan
  • Money Purchase Plan

All of these retirement accounts will help you save for your own retirement, along with your employees.

Best Retirement Plan for S Corp Owners

If you have an S Corp, we recommend choosing between:

  • Traditional or Roth IRA
  • SEP IRA
  • SIMPLE IRA
  • One-Participant 401(k) i.e. Solo 401(k)

How Do I Set Up a Self-Employed Retirement Plan?

Choose what type of account you want, then you’ll open an account with a brokerage like Vanguard or Ameritrade. If you’re not sure what type of account to do or you want help throughout the process, work with a financial planner or advisor. They will help you with tax
planning.

Key Takeaways

If you have an S Corp, we recommend choosing between:

  • You can plan for retirement as a self-employed person.
  • You have options, but getting started as early as possible is key.
  • The plan that is best for you depends on your current circumstance.
  • If you need expert advice and guidance, work with a financial advisor.

Plan for Retirement at 360 Financial

At 360 Financial, your retirement planning is our priority. We want you to be as financially comfortable as possible throughout retirement. We’ll help you make your money work for you as you age.


Book a 15-minute introductory call with us 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?”

Learn more about Mike.

Schedule a Call

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.

How Many Steps Are In the Financial Planning Process?

Written by Mike Rogers, Founder and President at 360 Financial

How many steps are in the financial planning process? This is a great question to ask if you’re considering working with a financial planner. We’ll help you understand the process.

TABLE OF CONTENTS

  1. What is the Financial Planning Process?
  2. What are the Steps in the Financial Planning Process?
  3. What are the Steps in Personal Financial Planning?
  4. Key Takeaways
  5. Services 360 Financial Offers All Clients

What is the Financial Planning Process?

The financial planning process documents your financial goals and the long-term strategy you will follow to achieve these goals. The plan is comprehensive, but highly specific to your needs, obstacles, and goals. The financial planning process also includes you implementing your plan, monitoring your financial progress, and making updates as needed.

A financial planner can help you every step of the way. They help you make a plan to reach your financial goals, including:

  • Budgeting
  • Saving
  • Retirement planning
  • Investing
  • Insurance

Now that you understand what the financial planning process is, we’ll break down the process into steps.

What are the Steps in the Financial Planning Process?

The financial planning process consists of six steps:

  1. Understanding your financial circumstances. Your financial plan will be specific to you, so your financial planner will make sure they completely understand your financial circumstance. They’ll also try to understand your personal circumstances. This step ensures your financial plan is comprehensive and specific to your needs.
  2. Identifying goals. Your financial planner will want to understand your top financial goals. Whether that be buying a house, saving for retirement, or creating a college fund, you will explain your financial goals.
  3. Analyzing your current course of action. You’ll also explain what you’re currently doing in regards to your financial goals. Knowing where you’re starting from helps your financial planner create a more realistic plan to help you reach your goals.
  4. Developing financial planning recommendations. Now that your financial planner knows all about your goals and situation, they will begin to create and record financial planning recommendations. They’ll present their recommendations to you, giving you options. At this point, it’s important you pick a plan that you’re comfortable and happy with.
  5. Implementing the financial plan. Once you pick the plan you’re comfortable with, you’ll have to begin implementing it.
  6. Monitoring progress and updating. As you implement your financial plan, you’ll monitor your progress. Then you can report back to your financial planner, and if something isn’t working, your financial planner will change it. On the flip side, if some aspects of your plan are working better than expected, your financial planner may adjust your plan to include more of the successful strategy.

Many people find financial planning easier when they work with a financial planner. Your financial planner will take the stress of making decisions off your shoulders, and they will only recommend their tried and true strategies. Financial planners are professionals, and they can
make the entire process easier for you.

If you do decide to work on your personal financial plan alone, here’s what you can expect.

What are the Steps in Personal Financial Planning?

If you plan to work on your personal financial plan without hiring a financial planner, you’ll have to dedicate far more time to research, building strategies, and making decisions. Here’s what the process looks like:

  1. Set your financial goals
  2. Come to an understanding of what your current financial situation is
  3. Analyze your current course of action
  4. Research financial strategies to help you reach your specific financial goals
  5. Build financial strategies, including alternatives so you have options
  6. Choose your financial plan
  7. Implement your financial plan
  8. Monitor progress
  9. Do research to update your current plan to meet your goals

As you can see, when you do this process all on your own, it is much more involved than when you work with a financial planner. Many people prefer to work with a financial planner, because they have to dedicate much less time to the process, and they typically get better results.

Key Takeaways

  • The financial planning process includes setting your goals, implementing your plan, monitoring your progress, and updating your plan.
  • A financial planner can make the entire process far easier for you. Doing the entire process alone can be far more work than you have time for.
  • It pays off to hire an expert who knows how to help you pursue your goals.

Services 360 Financial Offers All Clients

At 360 Financial, we care about your happiness and future. We’ll help you pursue your most important financial goals so you remain comfortable and confident in your future. We’ll find the appropriate financial pursue to reach your goals, help you implement it, monitor your progress, and update your plan.


Book a 15-minute introductory call with us 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?”

Learn more about Mike.

Schedule a Call

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.

How to Choose a Good Financial Advisor | Financial Planning

Written by Mike Rogers, Founder and President at 360 Financial

Inflation is increasing, costs are rising, and financial insecurity is a huge concern for many people across the globe. Now is the perfect time to get serious about managing your finances and reaching your financial goals—and a financial advisor can help you along the way. Today, we’ll be explaining how to choose a good financial advisor.

TABLE OF CONTENTS

  1. Financial Advisor Services
  2. What does a financial planner do to help their clients?
  3. Wealth management vs. financial planning
  4. Costs of working with a financial advisor
  5. Benefits of a Good Financial Advisor
  6. Looking at a financial advisor’s credentials
  7. What should I look for when interviewing a financial advisor?
  8. What is most important about choosing a financial advisor?
  9. How do you know if a financial advisor is trustworthy?
  10. Important Questions to Ask Every Financial Advisor You Meet
  11. Working with a Major Bank or Wealth Management Firm vs. a Smaller Independent Firm
  12. Why You No Longer Need to Find Your Advisor Locally
  13. Work with Your Financial Advisor Online
  14. Key Takeaways
  15. Services 360 Financial Offers All Clients

Financial Advisor Services

If you have a financial goal but are unsure what steps to take, a financial advisor can help you create an actionable, achievable plan. When you follow their plan, you can meet your major financial goals, such as:

  • Buying a house
  • Investing
  • Retirement planning
  • Saving for your child’s college education

Whatever financial goals you have, your financial advisor will help you create a plan to reach those goals—but they will also assist you along the way.

What does a financial planner do to help their clients?

When you work with a financial advisor, you won’t be following their financial plan on your own. Your financial advisor will provide more hands-on services to help you execute your plan. These services include:

  • Managing your investments
  • Acting as your stock broker
  • Advising and arranging insurance coverage
  • Strategizing estate planning
  • Making financial decisions

A financial advisor is perfect for you if you want help implementing your financial plan.

Wealth management vs. financial planning

It’s common to wonder if financial planning overlaps with wealth management. Here’s how to differentiate the two services: While financial planners consider every aspect of your finances—from insurance to everyday expenses—wealth managers typically only focus on assets, investments, will and trust services, and estate planning.

Costs of working with a financial advisor

Every financial advisor is different—and so is how they charge for their services. Financial advisors charge for their services in a few ways:

  • Flat hourly rate (typically between $100 and $400 per hour)
  • Flat annual fee (ranging between $2,000 and $7,500 per year)
  • Commission on investments or products, which will be a certain percentage
  • A certain percentage of your portfolio (often 0.25% to 1% per year)

It all depends on the financial advisor you choose, so be sure to ask this question while you are vetting your options.

Benefits of a Good Financial Advisor

A good financial advisor helps you build wealth by:

  • Keeping you on track and reminding you of your financial goals
  • Creating a financial plan and helping you follow it
  • Making financial decisions that are in your best interest (so you don’t have to)
  • Providing guidance and assistance along your financial journey

And most importantly, a good financial advisor is trustworthy, giving you peace of mind on a daily basis. You’ll no longer be working towards a prosperous future on your own but with the help of an expert.

Looking at a financial advisor’s credentials

If you’re looking for a financial advisor, make sure they hold a FINRA Series 65 license. This license is the most important credential that distinguishes a financial advisor from a financial planner. They may also hold other credentials, including:

  • Certified Financial Planner (CFP)
  • Chartered Financial Analyst (CFA)
  • Chartered Financial Consultant (ChFC)
  • Certified Investment Management Analyst (CIMA)

All of these extra credentials give financial providers more expertise and knowledge to help you create and execute your financial goals.

What should I look for when interviewing a financial advisor?

When you’re interviewing financial advisors, look for an advisor that is a fiduciary. Legally, fiduciaries are required to put the financial interests of their clients above their own—but not all financial advisors are fiduciaries. Nonfiduciaries are not required to give you the same level of financial loyalty that fiduciaries are.

Always choose a fiduciary over a nonfiduciary.

What is most important about choosing a financial advisor?

Aside from looking at credentials and choosing a fiduciary, specialities are another important aspect of financial advisors. When you know your financial goals, you can pick a financial advisor who specializes in your financial realm. For example, if your main goal is to improve your investments, you can find a financial advisor who focuses on investments throughout their career.
Look for financial advisors who have specialties that align with your goals, but all advisors will have general knowledge about other inancial topics.

How do you know if a financial advisor is trustworthy?

Here are some signs that help you know if a financial advisor is trustworthy:

  • The financial advisor knows your goals, remembers them, and prioritizes them
  • The advisor speaks openly about financial risk, and educates you about it
  • You clearly understand the fees that you would pay if you choose this financial advisor
  • Your advisor wants to meet regularly to discuss your portfolio

All of these are great signs that you can trust your financial advisor.

Important Questions to Ask Every Financial Advisor You Meet

To help you find the right financial advisor for you, here are some questions to ask:

  • Are you a fiduciary?
  • What are your certifications and qualifications?
  • Do you have any specialties?
  • What is your investment philosophy?
  • What are the fees and costs of working with you?
  • How regularly do you meet with your clients?
  • What makes your client experience unique?

On top of these questions, don’t hesitate to ask personal questions that will help you get to know the personality of your advisor. A personality alignment is just as important as a professional alignment, so you can ask about their values and their hobbies.

Working with a Major Bank or Wealth Management Firm vs. a Smaller Independent Firm

You can have luck working with a major bank or wealth management firm, but we recommend working with a smaller independent firm. At a smaller firm, you won’t be just another number, but a priority, and your advisor will take more time to get to know you, your goals, and your dreams.

At 360 Financial, part of our philosophy is to treat our clients like family. Your financial advisor will take the extra time to get to know you on a deeper level so that your financial plan meets your needs.

Why You No Longer Need to Find Your Advisor Locally

In the past, your only option was to find an advisor locally. Now, thanks to advancements in technology, you can work with any advisor across the country remotely. Sticking to local advisors can be very limiting, so we recommend considering remote options.

Work with Your Financial Advisor Online

The best fit for you may be just a Zoom call away at 360 Financial. We’re more than happy to work with you remotely. We connect with families all across the United States, and we’d be happy to add you to our financial family.

Key Takeaways

  • A financial advisor creates your plan and implements it, advising you along the way.
  • Look for a financial advisor that has a FINRA Series 65 license.
  • Look for a financial advisor that is a fiduciary.
  • Ask the right questions to find a financial advisor you trust.

Services 360 Financial Offers All Clients

We’re here to help you with your big picture planning. Financial planning is not one-size-fits-all, and you need an advisor that is in tune with your goals and needs—which is what we specialize in at 360 Financial.

We focus on tax strategies, income planning, legacy planning, risk management, investment planning, and estate planning. 360’s financial advisors consider your entire financial picture when creating a plan for you.


Book a 15-minute introductory call with us today

Financial Planning Young Adults: Saving, Investing, and Managing Money

Written by Mike Rogers, Founder and President at 360 Financial

While there’s no magic formula to making money and growing your wealth, there are certain things you can do to stack the odds in your favor. Starting at a young age is key because you’re more likely to develop good habits – which can make all the difference in achieving future financial success.

For people in their late teens and twenties, this is the time to learn about finance and start saving for your financial future. The younger you are, the more time your savings and investments have to grow.

This article will give you tips on how to start saving, investing, and managing your money.

TABLE OF CONTENTS

  1. Why is Financial Planning Important at a Young Age?
  2. Top 5 Financial Planning Tips for Young Adults
  3. Earning more at a younger age
  4. Budgeting and managing your money
  5. Investing as a young adult
  6. Saving for a financially-free lifestyle
  7. Building your wealth and protecting it
  8. How do you Financial Plan in your 20s?
  9. Managing an Inheritance
  10. Financial Advisor for Young Adults
  11. Key Takeaways
  12. Services 360 Financial Offers All Clients

Why is Financial Planning Important at a Young Age?

The most valuable thing in life is time, and when you’re young, you have it. The younger you are, the more time you have to make money. You also have more time to let your money grow, through either investments or savings. Also, you have more time to take risks—which increases
your rewards—and more time to make financial mistakes and learn from them.

Another reason it’s important to plan financially at a young age: Now is the time that you are building your habits. If you build habits that allow you to succeed financially now, then you will carry those with you throughout the rest of your life.

Top 5 Financial Planning Tips for Young Adults

Here are our tips to help you plan financially:

1. Earning more at a younger age

Earning more money is the first step to financial freedom. You can’t save, manage, or invest money if you don’t have it. That’s why it’s so important to start earning more right away. While your mind might jump to side hustles, we urge you to try to work smarter, not harder. After all, no one wants to be constantly overworking themselves.

While side hustles can be great, first, it’s important to find a full-time income that adequately pays you for your skills. It’s important to know your worth by performing market research, so you can ask for enough and not under-sell yourself.

Even after you get a job, it may pay off to keep yourself on the market. Wage growth for job switchers is 47% higher than for those who stay in their current job. This is because you have negotiating power when you’re switching jobs.

If you’re struggling to find a full-time job that pays enough, consider becoming self-employed. While it’s not the right path for everyone, it can potentially help you earn more.

2. Budgeting and managing your money

Once you start earning money, you need to budget and manage it — otherwise you’ll spend it all too fast. You’ve probably heard of the saying, “You can’t manage what you don’t measure.” When it comes to your money, that’s especially true.

When you know where all your money is going, it becomes easier to make decisions about how you want to spend and save. The first step is to simply record and analyze how you’re currently spending money, and where you can make changes.

After you analyze where your money is going, now it’s time to create a budget. A budget is a detailed plan for how much money will be coming in and going out over a given period of time.

Remember: A budget is a plan, and it won’t always be executed perfectly. Give yourself grace when you make mistakes, but continue to track your spending so you can avoid those mistakes next month.

3. Investing as a young adult

When you start budgeting and managing your money, you will begin allotting some towards savings. But letting ALL of your savings sit in a bank account isn’t the best way to grow your money. While savings are undoubtedly essential, we also recommend investing a certain percentage of your income monthly.

Investing is more of a risk, but it has a much higher reward than saving. And because you’re young, those risks are easier to take because you usually won’t be needing your money for decades—giving it time to grow again, even if you lose some along the way. You’ll keep your money in your investment account for the long-term and ride out any short-term downdrafts.

Investing your money will likely yield high returns, and it’s best to get started as a young adult.

4. Saving for a financially-free lifestyle

As we mentioned previously, saving is extremely important. Your main goal should be cutting your spending in unnecessary areas, and allotting a certain amount of money each month into your savings.

Now is the time to save for financial freedom. This means you’ll have the money you need to live the life you want to live. Ideally, this means you create enough income to not have to work after you retire.

When you’re old, you won’t want to be spending your days working. You want to work and save now, so that you can enjoy your older years in peace. But the best thing about savings, unlike investments, is that if you do have an emergency, you can use these funds to help you.

We recommend starting an emergency fund first, which is a savings account that is meant to be used during a crisis. After that, start building a savings fund that you ideally won’t touch until retirement.

5. Building your wealth and protecting it

Building your wealth is a process that involves making, managing, investing, and saving money. You also have to protect your wealth as you grow up from avoidable losses and risks. Protecting your wealth means getting great insurance and working with a financial advisor.

A financial advisor:

  • Creates your financial plan
  • Manages your investments
  • Acts as your stock broker
  • Advises and arranges insurance coverage
  • Strategizes estate planning
  • Makes financial decisions
  • Executes your financial plan

All of which can take stress and tasks off your shoulders. Plus, a financial advisor is an expert who can get you better results than if you manage your money on your own.

How do you Financial Plan in your 20s?

When you create a financial plan, whether with a financial advisor or on your own, there is a process to follow. Here are the steps:

  1. Set your financial goals
  2. Understand what your current financial situation is
  3. Analyze your current course of action
  4. Research financial strategies to help you reach your goals
  5. Build financial strategies, including alternatives so you have options
  6. Choose your financial plan
  7. Implement your financial plan
  8. Monitor progress
  9. Do research to update your current plan to meet your goals

However, when you work with a financial advisor, they will take on a majority of the grunt work, help you make decisions, and monitor your progress.

Managing an Inheritance

With more money comes more responsibility. While you have a great opportunity to build upon your wealth by managing your inheritance properly, there’s also a great risk of overspending and causing your inheritance to vanish quickly.

If you have received an inheritance, we highly recommend working with a financial advisor. They can help you properly invest your money so that it grows.

Financial Advisor for Young Adults

The prospect of working with a financial advisor may seem intimidating, but it really isn’t. The important thing to remember is that advisors just want to help YOU succeed and meet your financial goals. There are many advisors who work with young adults, and most of them have pricing that scales with you.

Overall, when you’re looking for a financial advisor, it’s essential to find someone you trust. You want to feel comfortable with them and talk openly and honestly with them. Avoid any advisors who make you feel intimidated.

Key Takeaways

  • The younger you are, the more time you have to earn and build your wealth.
  • When you’re young, your habits are important and carry with you for the rest of your life. Now is the time to create financially healthy habits.
  • Budget, manage, invest, and save your money.
  • If you need expert advice and guidance, work with a financial advisor.

Services 360 Financial Offers All Clients

At 360 Financial, we want you to be confident that you have a financially comfortable future. We’ll help you create a plan, execute it, and monitor your progress, so that you can be financially free in the future.


Book a 15-minute introductory call with us 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?”

Learn more about Mike.

Schedule a Call

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.

WEBINAR: 2023 Outlook: Finding Balance

January 10, 2023

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!

Looking for more information?

Download Your FREE Copy of Our Minnesota Estate Planning Checklist

    Financial Planning vs. Financial Advisor

    Written by Mike Rogers, President and Founder, at 360 Financial

    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.

    TABLE OF CONTENTS

    1. What is Financial Planning?
    2. What does a financial planner do to help their clients?
    3. What designation does a financial planner have?
    4. What is the Difference Between a Financial Planner and Financial Advisor?
    5. What does a financial advisor do to help their clients?
    6. What designations does a financial advisor have?
    7. Do I Need a Financial Advisor or Planner?
    8. Do I need to find a financial advisor or planner locally?
    9. What is the cost of working with a financial advisor?
    10. Key Takeaways
    11. 360 Financial’s Financial Advisors

    What is Financial Planning?

    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

    If you need help with these areas, then a financial planner is what you need.

    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 planner is 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 more broad in their approach. Financial advisors typically offer the same services as a financial planner, 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 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.

    What does a financial advisor do to help their clients?

    While a financial advisor offers similar services to a financial planner, they also offer even more services, including:

    • Managing your investments
    • Acting as your stock broker
    • Advising and arranging insurance coverage
    • Strategizing estate planning
    • Making financial decisions
    • Executing your financial plan

    While a financial planner will create your plan, a financial advisor will provide more hands-on services actually to help you execute that plan.

    What designation does a financial advisor 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 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
    • Are nearing retirement
    • 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.

    360 Financial’s Financial Advisors

    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?”

    Learn more about Mike.

    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:

    About the Author

    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 building a solid financial base with two of the nation’s largest investment firms. As a fiduciary, he utilizes his 30+ years of experience to orchestrate and implement customized 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.

     

    How to Find a Wealth Management Advisor

    Written by Mike Rogers, President and Founder, at 360 Financial

    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.

    TABLE OF CONTENTS

    1. How to Find a Wealth Management Advisor You Can Trust
    2. How do I choose a wealth advisor?
    3. What is the Typical Fee for a Wealth Manager?
    4. Are wealth management advisors worth it?
    5. How much money should you have to hire a financial advisor?
    6. Key Takeaways

    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 services include:

    • Meaning-of-life questions on life goals, money, and values alignment
    • Comprehensive & long-range wealth management & financial planning
    • Education planning & funding (college planning)
    • Estate & estate tax planning
    • Generational wealth
    • Investment advice & management
    • Philanthropic planning & charitable giving
    • Retirement goals & planning
    • Risk management
    • Specialist referrals
    • Tax planning & strategies

    Our goal is to help our clients get their finances in order—ultimately helping them feel more confident and happy.

    How do I choose a wealth advisor?

    Finding the right wealth advisor helps you shift your mindset towards 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:

    1. What does wealth management mean to you? Find an advisory firm who agrees with your definition.
    2. What do you want in a wealth advisor? Find one who offers those services.
    3. What wealth management services are most important to you? Look for an advisor with related experience.
    4. 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.
    5. Look for an advisor who listens to you and is empathetic to your needs.
    6. 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.
    7. 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.

    What is the Typical Fee for a Wealth Manager?

    Many wealth management firms 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 us today.


    Top Financial Planning Articles

    Want to keep learning about financial planning? Keep reading:

    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?”

    Learn more about Mike.

    Schedule a Call

    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.

    How Does Wealth Management Work?

    Written by Mike Rogers, President and Founder, at 360 Financial

    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.

    TABLE OF CONTENTS

    1. What is Wealth Management?
    2. At What Point Do You Need a Wealth manager?
    3. Are Wealth Management Fees Worth it?
    4. Wealth Management Process
    5. Key Takeaways

    What is Wealth Management?

    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, and estate 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 in wealth 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: 

    1. Meet with you to understand your goals, needs, and financial situation.
    2. Research investment options to find those that align with your goals and needs
    3. Create an investment plan based on your preferences, goals, and risk tolerance
    4. Collaborate with you and making sure you’re comfortable with your plan
    5. Manage your investments over time
    6. 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.

     with 360 Financial today.

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    Enjoyed this article? Keep reading to learn more about financial planning.

    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?”

    Learn more about Mike.

    Schedule a Call

    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.

    WEBINAR: Retirement Planning for Business Owners

    October 12, 2022

    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!

    Looking for more information?

    Download Your FREE Copy of Our Minnesota Estate Planning Checklist

      Great News! We Merged.

      September 8, 2022

      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!

      NOW two convenient locations!

      Read the Press Release

      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