I admit it. I’m one of those people who likes to figure things out for myself. Over the last few (or maybe more than a few) years, I’ve worked hard to figure out where figuring things out for myself leads to positive self-esteem and where it just leads to stubbornness and frustration. We can’t do everything ourselves (thank heavens for girlfriends) and we can’t be experts in everything.
Girlfriend Guru and financial expert MIATA EDOGA shares some great tips for how to choose help when it comes to personal finances. We want to hear about your experiences, girlfriend–tell us in the comment section (we really are listening).
While I believe strongly that nobody cares about your money as much as you do, I also live in the real world. Money management can be a full time job, and hopefully, you’re successful enough that you’ve already got your hands full with other tasks. If you think it’s time to hire help, make sure the adviser you hire shares your values and goals. In a nutshell, here’s what you’re looking for: an adviser who wins as you win and who won’t shy away from telling you when you’re really stepping in it with your financial management practices.
Who you are has as much to do with finding a good adviser as anything else. Don’t necessarily choose an adviser who’s “like you.” Choose one who compliments you. I often choose coaches who I know think about life differently than I do. Why? I don’t want to pay someone to tell me what I already know! At the same time, I need someone who’s going to be clearly on my team while they disagree. I have to be willing to hear the criticisms they have, not tune them out.
Two popular designations for financial advisers are Certified Financial Planner and Chartered Financial Consultant. While these don’t ensure that your adviser is an honest, competent person who’s going to work in your corner, it does show that the adviser has passed rigorous competency and ethics tests.
You can often find out about an adviser’s intentions based on licenses. Advisers who are only licensed to sell insurances will probably be targeting you to buy some. On the flip side, advisers who are licensed to broker securities like stocks and bonds but don’t hold insurance licenses may overlook the important area of risk management.
Find Out How She’s Paid
Advisers are often paid in one of three ways. While one form of payment doesn’t make an adviser good or bad, it will show you explicitly how the relationship will work.
Commission-based advisers receive compensation when you purchase something from the stable of products they recommend. The good news: you’ll have an adviser who’ll work hard to make sure you implement your plan (because that’s when they’re paid). The bad news: if the adviser’s products don’t match your goals, you could end up with the wrong investments.
Fee-based advisers receive compensation based on fees they charge to complete financial plans and to manage assets (usually they charge a percentage of the amount they manage in lieu of a commission). While these advisers are still motivated to help you implement your plan and the investments are likely to fit your situation, their fees may be considerably higher over time than those of a one-time commission adviser, due to their recurring nature.
Fee-only advisers charge you for the time and energy to complete a plan on your behalf. They aren’t compensated in other ways. Studies have shown that these advisers usually produce the most comprehensive plans that match your situation best. However, studies have also shown that because these advisers have no incentive to help you implement the plan, people are more likely to use the adviser’s strategies like a buffet and only implement the parts they choose. In most cases, this is harmful to the overall strategy.
A wonderful adviser can help you in ways you might never expect. She can point out flaws in your plan, round out your thinking about critical income and expense issues, and help you diversify your balance sheet while protecting your downside and applying optimal tax treatment. Take the time to interview several people to make sure you pick the person who’ll be the best fit for you!
MIATA EDOGA is the President and Founder of Abundance Bound, a 10-year old company committed to utilizing humor, inspiration & lots of love to give individuals around the world the necessary tools to thrive financially, while keeping focus on the things they treasure most. Visit the Abundance Bound Facebook Page for your free copy of Financial Success for the Creative Soul!
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Debba Haupert | 39 items | 1065 views
Don't you love having SMART girlfriends who give great advice? Well, we've got the go-to gal for financial advice for women. The President and Founder of Abundance Bound shares her insights in these guest blogs as a GIRLFRIEND GURU for Girlfriendology. (Thanks Miata!)
1. Rent or Buy? Home Decision Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspiration,...
Be grateful for the home you have, knowing that at this moment, all you have is all you need. Sarah Ban Breathnach I'm so grateful for my home. It's where I live, work, spend time with my friends (and pets!).
2. Saving Money: 5 Ways to Avoid Restaurants,Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend...
There are times when I love making dinner. There are times when going out is the joy of getting together with wonderful people and catching up over a meal. There are times when there are no ingredients in the house (unless you count tomorrow's yogurt and a packet of ice tea mix as "ingredients").
3. 5 Tips To Save Money on Groceries,Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspi...
Supermarket automatic doors open for me; therefore, I am. - Craig Bruce My friend Shari loves grocery shopping. She loves the bright fresh fruits and veggies and finding new varieties to try. She loves discovering new flavors and ingredients and spices-and she is a gifted cook who takes her inspirations and turns out delish dishes.
4. What to Look For In a Financial Advisor, Financial Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | ...
I admit it. I'm one of those people who likes to figure things out for myself. Over the last few (or maybe more than a few) years, I've worked hard to figure out where figuring things out for myself leads to positive self-esteem and where it just leads to stubbornness and frustration.
5. Pay Off Your 30 Year Mortgage in 15 Years | Financial Guru Miata Edoga | The New Girlfriendology | Be a Better Friend...
May the roof above us never fall in And may we good companions beneath it never fall out. ~Irish Blessing Bills are not fun. Paying bills is not fun. I can think of about a zillion things that are more fun than paying bills.
6. Financial Aid for College,FAFSA Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspira...
We dream of sending our children to college. When they are babies we dream of the academic/football/diving/debating/fill-in-the-blank scholarships they'll get. And then it turns out that they hate diving or love football but don't play at a level to earn a full ride.
7. Buying Your Next Car,Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspirat...
It's that time again in my world. Time to think about acquiring a new vehicle. Ick. Sorry, that's all I can come up with. Ick. There are people who love car shopping-I am not one of them. It seems other people know so much more than I do about cars and financing.
8. Building Your Financial Plan | Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better Friend | Ins...
There are times when it's fun to drive without a destination, to wander the roads watching the scenery without worrying about anything more than enjoying the ride-hopefully with a great girlfriend along to spend time together. There are times when we need to get somewhere specific (possibly on time).
9. Are You Overpaying For Investments? Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Fr...
We all approach decision making differently. Some of us race in, getting past the decision point as quickly as possible, leaving it to the facts to catch up when they are ready. Some of us agonize over every possibility, getting so caught in the "what-ifs" that we become paralyzed with indecision.
10. Going Through a Divorce? Three Money Tips,Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better F...
"I couldn't believe how much I didn't know," a girlfriend recently told me. We were talking about the divorce she'd gone through three years ago. "Partly I just ignored all that financial stuff. I thought it was great that it was his responsibility-like putting out the garbage and fixing the leaky faucets.
11. Just Starting Out? Follow These Basics,Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better...
Every now and then it really pays to go back to the beginning. Even when we think we know something really well. Have you ever looked at a recipe you've been making from memory for years only to find out that there is an ingredient you'd forgotten or a different measure or...(this happens to me far more often than I care to admit).
12. Navigating a Home Refinance,Finance Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a Better F...
Sometimes we call a girlfriend for a silly, "fluff" conversation: how are ya' doin'? Guess what color I dyed my hair? Have you seen the latest episode of ...? Sometimes we call because we want something more substantial: philosophy or perspective or great girlfriend advice.
13. Negotiating a Raise at Work, Financial Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a Bette...
Some things seem easy when you listen to someone else or watch a sitcom (where both sides of the dialog are scripted out). Talking about money is one of those things that-for many of us-is much harder in real life than it is in our head.
14. Going Phishing - Protect Your Financial Information, Advice from Girlfriend Guru Miata Edoga | The New Girlfriendolog...
There is a difference between fishing and phishing. Not just the spelling, but the harm it can do to your identity and finances. In one, actual fish are the goal; in the other, it's our money (or us, depending on how you look at these things).
15. More 401k Mail? Don't Throw This One Out! Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Bet...
If you want something, it will elude you. If you do not want something, you will get ten of it in the mail. ~Anna Quindlen Girlfriend guru and financial wiz MIATA EDOGA tells us not to immediately toss all that boring retirement stuff in the recycling bin. At least not right away.
16. Saving Money on Back-To-School, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend...
I like a teacher who gives you something to take home to think about besides homework. ~Lily Tomlin as Edith Ann It's also a great time to pick up supplies for school, work, or just around your home. We love the one-cent sales. We love them so much, they sometimes lead to overstocking on things.
17. 5 Steps to Buying Big Ticket Items, Financial Advice from Miata Edoga | The New Girlfriendology | Be a Better Friend ...
Some things are so easy to purchase. Other things represent more of a challenge. My favorite way to deal with big purchases is to put someone else in charge. Of course, once they make a final suggestion I usually want to weigh in on the decision, so that doesn't work out to well in the end.
18. Are You Too Worried About Risk? Guru Advice from Girlfriend Miata Edoga | The New Girlfriendology | Be a Better Frien...
"If you risk nothing, then you risk everything." Geena Davis What if you don't like me? What if I vote differently? Dress strangely? Talk with an accent, have a diverse background or live a different lifestyle? Will you still be my friend? Friendship comes with risks ...
19. Choosing Retirement Investments, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Frien...
The trouble with retirement is that you never get a day off. Abe Lemons For some of us (OK, for most of us), retirement seems far away. Maybe it's that we're young (or young at heart). Maybe it's that we haven't saved enough for retirement.
20. Avoiding The Money Fight, Financial Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Ins...
We're watching the Olympics in my house (big surprise, right?) so the arguments these days are generally either with the television ("That was SO not a penalty!") or among ourselves about which of the zillion channels we should be watching. These are easily ignored, quickly forgotten non-arguments.
21. Low Interest Rates,Girlfriend Advice from Guru Miata Edoga | The New Girlfriendology | Be a Better Friend | Inspirati...
A bank is a place that will lend you money if you can prove that you don't need it. ~Bob Hope I was having lunch with a group of girlfriends recently and we were joking about a ridiculously expensive purchase. "Ah, who needs money?" joked Sammi. Every hand at the table went up.
22. Understanding Your Credit Score | Financial Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a ...
A person's credit report is one of the most important tools consumers can use to maintain their financial security and credit rating, but for so long many did not know how to obtain one, or what to do with the information it provided. Ruben Hinojosa It's easy to do.
23. Why Are You A Spender? Financial Advice from Girlfriend Guru Miata Edoga | The New Girlfriendology | Be a Better Frie...
Why Are You A Spender? Financial Advice from Girlfriend Guru Miata Edoga,friendship quote,girlfriend advice,finances,guest blog
24. Consolidation Loans: A Good Idea, but Not a Strategy, Financial Advice from Guru Miata Edoga | The New Girlfriendolog...
The little money I have - that is my wealth, but the things I have for which I would not take money, that is my treasure. ~Robert Brault Friends are such a valuable treasure. And friends who share helpful girlfriend advice on things we often need to know, are invaluable as well.
25. How Much Should I Save For Retirement? Advice from Finance Guru Miata Edoga | The New Girlfriendology | Be a Better F...
A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. ~Suze Orman I love how girlfriend take care of each other. We share advice and car rides, health and fitness tips and 'friendly advice.'