Your Financial Dream Team
To kick some serious financial butt you need to build your financial dream team that includes a Money Coach, or Financial Advisor who focuses on building a realistic financial plan based on growing net worth through long-term investments; an insurance agent who advises on how to best protect your assets and family in case something (damage, illness, or death) derails your plans; an accountant who focuses on tax-reduction strategies; and a lawyer who can advise on wills, property transactions, prenuptials, trusts, estates, and other legal matters that might surface.
Money Coach or Financial Advisor: Step one of building your dream team should be to hire a money coach or financial advisor and start building your net worth. Always get a referral from someone you trust. I’d recommend interviewing a few, to see if you like them and to see if they’re being honest and realistic. Ask each candidate to prepare a proposal of a financial plan. This will help you select the adviser most aligned with your goals (you can tell who was listening well).
Insurance Agent: Step two is to attain the right insurance to help protect your assets. Use an agent or company to which you’ve been referred, and interview a few. A good agent will direct you toward insuring for major things (life, illness, home, loan, and auto), not minor items. Don’t overlook critical illness and disability coverage as statistically you are more likely to experience these life events than to pass away. Ask your candidates to prepare a proposal to address your needs.
Accountant: Step three is to hire an accountant. An accountant’s job is to legally minimize the tax you pay. She or he will advise you on how to manage your net-worth growth in the most tax-efficient way. Get a referral and make an appointment at least once per year to ensure your finances are structured properly.
Lawyer: Step four is to ensure that you have access to a trusted lawyer. You won’t need their services often, but they’re critical when you need to buy a house, draw up a will if your situation is complex, or go to court.
Your financial dream team will cost you money - fees and/or commission. But, a great dream team will FAR outweigh the costs. You can even ask your accountant about whether certain fees are tax deductible, given your unique financial situation. Go into your appointments well organized so that you can take care of business quickly and efficiently, which should save you money.
