David: I’m David John Marotta, and I’m president of Marotta Wealth Management, and I’m going to be talking about comprehensive financial planning.
Male: What is financial planning?
David: Financial planning is simply life planning, so you start with what your goals are and then you structure everything, including your finances in order to best accomplish those goals.
Male: What areas does financial planning cover?
David: Financial planning covers everything from investments, insurance, estate planning, retirement planning, and so all the areas of finance that will help you accomplish your goals. But because financial planning is life planning, it also encompasses things like career asset management, marriage planning, budgeting, college planning, and everything else. So a comprehensive financial planner’s job is to do everything in your finances that you would do if you have the time and expertise.
Male: What are the biggest mistakes people make regarding financial planning?
David: People who are not familiar with financial planning or don’t have an analytical nature end up making primarily three mistakes. The biggest of which is simply avoiding the topic entirely, so they assume that everything will work out and they don’t ever look into the future. On the second biggest mistake is ending up trusting people that they shouldn’t, they get involve in schemes that end up losing the money or not the best investments. And the third is trying to do it themselves when they really don’t have the time and expertise, so just like you might go to an expert to have your oil change, there are times of which going to financial experts who are trustworthy can end up enhancing your finances.
Male: What is the difference between a financial planner and an agent or a broker dealer?
David: A purely in financial planner has a legal obligation to act as a fiduciary, which means that they have a legal obligation to do what’s in your best interest. A broker or an agent is really working for a company, they are paid by the company and there’s more conflict of interest. So a purely financial planner is someone who sits on your side of the table and gives you the advise that you need to meet your goals.
Male: Where is the best place to find a comprehensive, fee only, financial planner?
David: The national association of personal financial adviser, NAPFA, N-A-P-F-A, is truly comprehensive and strictly fee only. So they are the best place to find a good financial planner. You could find a financial planner in your area if you go to their website, www.napfa.com.
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