To really give your money time to grow, it’s imperative that you start saving and investing early. Unfortunately, the idea of investing money strikes fear in the hearts of many who have no idea where to begin. For the new investor, there are several different types of advisors you can consult.
A financial coach might be described as your earliest financial teacher (beyond your parents who admonished you not to spend all your allowance on candy). A coach can help you plan for where you want to be financially in 10 or 40 years. He or she can help you understand the importance of establishing a budget and an emergency fund, and you help track your spending. A financial coach can be an expert money manager such as Frederick Baerenz or just someone who really understands the importance of managing money well.
Certified Financial Planner
When you’ve gotten your general budget in order, and you’re ready to start investing, find a certified financial planner to help you meet your goals. CFPs have been through a rigorous training and certification process and must abide by a code of ethics. CFPs are trained to give expert financial advice. They charge for their services in different ways. Some are on yearly retainers; others charge by the hour. If you’re not sure if you’re ready for a CFP, reach out to someone such as CEO Frederick Baerenz for advice on which type of financial advisor would best meet your needs.
A robo-advisor is really just a computer program that you plug your information into, and it spits out financial advice. If you’re very confident about which investments to pursue, then a robo-advisor might work; however, some people are uncomfortable with the lack of human touch, especially when their money is at stake.
At some point in the future, you might need to hire a wealth manager. Until that time, however, don’t be afraid to consult with a financial advisor who can start you down the path to investing and saving.