Skip to main content

How to Assemble Your Financial A-Team

By U.S. News & World Report

In a world where regular folks are often threatened by forgotten budgets, half-baked retirement plans and inscrutable legalese, there’s only one team that can protect your financial interests while helping you plan for the future.

This sounds like a job for — dun, dun, duuuun — your financial A-team.

[See: 8 Times to Talk to a Financial Advisor.]

Yes, sometimes you need to bring on a financial professional — or four — to rescue your finances.

Your team of financial superheros should include a range of specialists who can help you identify your money goals, save money on taxes and draft up legal paperwork. Whom you decide to bring on board will depend on your age, your goals and the complexity of your financial situation. “The higher the net worth, the more team members you [typically] need,” says Kelly Graves, a certified financial planner and partner at Carroll Financial Associates in Charlotte, North Carolina.

Here’s a who’s who of the pros you should consider recruiting to your financial dream team.

Financial planner. A financial planner is quarterback of your money team. This professional can review your financial statements, identify goals and address questions. As team captain, he or she will also coordinate with the rest of your financial team, sharing regular reports and coaching you through your interactions with legal and tax specialists.

Aim to find a financial advisor who is designated as a certified financial planner and will act as a fiduciary, offering advice that’s in your best interest, not based on commissions. There are lots of resources for locating financial planners in your area. Search the database of the National Association of Personal Financial Advisors, a group of fee-only financial advisors. Or check out the Financial Planning Association, the largest membership organization for certified financial planners. Consider a financial professional from the Garrett Planning Network, whose members provide advice on an hourly, fee-only basis.

The cost of retaining a financial planner varies widely, depending on his or her fee structure, location and services offered. You might expect to pay around $150 or more per hour, or 0.5 to 1.5 percent of assets. Don’t be bashful: Make sure to ask about this fee upfront when you’re interviewing potential planners.

[See: Decode These 10 Vexing Financial Terms.]

Tax professional. If your tax situation requires more expertise than your online tax-filing software program provides, then a tax professional may be worth adding to your financial A-team.

If you already are working with a financial advisor whom you like, ask him or her for a referral, since it’s essential that your pros communicate and work well together, experts say. Consider seeking someone with a certified public accountant designation, which means you’re dealing with an accountant, qualified through rigorous testing and licensing. Another designation — the enrolled agent title — identifies an expert who has demonstrated tax expertise to the Internal Revenue Service and specializes in taxes. Find one through the National Association of Enrolled Agents.

The cost will depend on several factors, including the complexity of your tax situation. “The more complex it is, the more it’s going to be,” says Allan Katz, president of Comprehensive Wealth Management Group in Staten Island, New York. “It’s about $150 to $300 per hour depending on what kinds of needs you have.”

Estate-planning attorney. Depending on your age and family situation, you may want to hire an estate-planning attorney who can help you draft essential legal documents, such as a will, advance health care directive and durable power of attorney.

Experts recommend finding a law professional who specializes in this kind of end-of-life planning work. “I feel real strongly that you don’t get the person who did your family’s traffic ticket this month, and is next month putting your estate together,” Graves says.

What you’ll end up paying ranges. You may pay a flat fee of several hundred dollars for an attorney to write up common legal documents. Or you may pay an hourly rate. People in the Providence, Rhode Island, area generally pay $2,500 to $4,000 for more advanced estate planning, depending on the law firm, says Jason Archambault, managing member of SK Wealth Management in Providence.

The good news is that you don’t necessarily have to meet with this pro that often. A financial planner can tell you when a life change or tweak in the law makes it necessary to reconnect with your estate attorney and update your plan. A good one may even be able to sit in the meeting with you and help translate the legal-speak.

[See: 14 Important Personal Finance Dates to Mark on Your Calendar.]

Insurance broker. Make sure you’re covered in an emergency by having the appropriate insurance for your needs. Your financial planner can help you identify what kinds and levels of coverage you need, then recommend an insurance agent. When you and your financial advisor agree on what kinds — and how much — of each insurance product you need ahead of time, you can avoid being oversold on unnecessary products.

You can also check with your state insurance department to see how long someone has been licensed, says James Dew, a certified financial planner and president and CEO of Dew Wealth Management in Scottsdale, Arizona, in an email. “You don’t want someone to learn on your dime,” he says.

Depending on your money situation, you may also want to look into an investment advisor, private banker — who can help you secure a bridge loan — and a certified private wealth advisor among other financial pros. No matter whom you hire to your financial A-team, though, it’s worth repeating: “Make sure all these professionals can communicate and work well with one another,” Katz says.

More from U.S. News

7 Signs Your Romantic Partner Is Financially Unstable

15 Financial Steps to Take Your First Year After Graduation

8 Easy Ways to Organize Your Financial Life

How to Assemble Your Financial A-Team originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote