PRISM: Prioritizing Your Goals

Deciding Whether to Work with a Financial Professional

Now that you've considered your potential constraints, listed out your accounts and thought about funds versus individual securities, it's time to focus on who will be managing your portfolio.  

Reflect 

In this lesson, you will be deciding whether to work with a financial professional based on your preferences. 

The first question you will want to reflect upon is, "do you require specific assistance for a task like taxes or estate planning? If so, you may want to rely on a tax advisor or an estate attorney. In contrast, if you need general financial planning you may want to seek out a planner to periodically meet with about your overall finances or an advisor to physically manage your portfolio. 

Acknowledging and understanding how much assistance you will need and for what tasks is essential before moving forward. Identifying your investment management preferences is crucial before we begin the next section: "S" - Selecting and Managing Your Investments, where we will delve into how to choose specific assets for your portfolio. 

Engage 

If you haven't done so already, please complete the "Identifying Your Investment Management Preferences" worksheet, which assesses what type of investment management preference may be right for you.  

Then, participate in the discussion below to understand how other AAII members think when deciding whether or not to rely on a financial professional. 

Remember to attend or watch a replay of the PRISM Webinar: Using Your Personal Preferences to Find the Right Investment.

Participate 

Complete the worksheet and answer these two questions in the discussion below: 

1. What specific tasks would you need assistance with like the examples we mentioned above? If you don't have any, mention that below.
2. Do you currently or plan to need a financial planner or advisor in the future? What questions will you consider before making that decision? 

Discussion Example 

1. This year, because my taxes have changed and I have more investments than I previously had, I will be relying on a financial professional to advise me on new tax laws, deductions, my ROTH IRA, etc. 
2. I am not planning on having a financial planner or advisor because my portfolio has not reached that level yet – still in its infancy stages and I can rely on AAII's tools/resources to help me for the time being.  

View and download the Identifying Your Investment Management Preferences worksheet 

1. What specific tasks would you need assistance with like the examples we mentioned above? If you don't have any, mention that below.

I will need tax advice when I start selling securities and and whether or not Roth IRA's make sense this late in the game.

2. Do you currently or plan to need a financial planner or advisor in the future? What questions will you consider before making that decision? 

I do not currently use a financial planner or advisor.  I am heavily leaning towards continuing on my own for my financial planning needs and asset allocation selection.  I have recently found a financial planning software program that fits my needs well as far as the planning side goes.  It does not help me pick investments.  For that I will rely on AAII to help guide me.  

If anyone would like more info on the financial planning software Privately Reply to me and I will tell you more about it.  I am not affiliated with the company in any way, just a user of the software.  It helped me tremendously so if it would help you I would be happy to share.  I hope it's okay I mentioned it here.

Deciding Whether to Work with a Financial Professional

Now that you've considered your potential constraints, listed out your accounts and thought about funds versus individual securities, it's time to focus on who will be managing your portfolio.  

Reflect 

In this lesson, you will be deciding whether to work with a financial professional based on your preferences. 

The first question you will want to reflect upon is, "do you require specific assistance for a task like taxes or estate planning? If so, you may want to rely on a tax advisor or an estate attorney. In contrast, if you need general financial planning you may want to seek out a planner to periodically meet with about your overall finances or an advisor to physically manage your portfolio. 

Acknowledging and understanding how much assistance you will need and for what tasks is essential before moving forward. Identifying your investment management preferences is crucial before we begin the next section: "S" - Selecting and Managing Your Investments, where we will delve into how to choose specific assets for your portfolio. 

Engage 

If you haven't done so already, please complete the "Identifying Your Investment Management Preferences" worksheet, which assesses what type of investment management preference may be right for you.  

Then, participate in the discussion below to understand how other AAII members think when deciding whether or not to rely on a financial professional. 

Remember to attend or watch a replay of the PRISM Webinar: Using Your Personal Preferences to Find the Right Investment.

Participate 

Complete the worksheet and answer these two questions in the discussion below: 

1. What specific tasks would you need assistance with like the examples we mentioned above? If you don't have any, mention that below.
2. Do you currently or plan to need a financial planner or advisor in the future? What questions will you consider before making that decision? 

Discussion Example 

1. This year, because my taxes have changed and I have more investments than I previously had, I will be relying on a financial professional to advise me on new tax laws, deductions, my ROTH IRA, etc. 
2. I am not planning on having a financial planner or advisor because my portfolio has not reached that level yet – still in its infancy stages and I can rely on AAII's tools/resources to help me for the time being.  

View and download the Identifying Your Investment Management Preferences worksheet 

Having an accredited tax advisor is absolutely essential. 

"Accredited" means more than having a CPA certification.

They need to be current on the annual training update requirements.

They need to be willing to sign your tax filings. 

Getting tax advice from an "investment" professional does not meet these criteria.

Remember EVERY "investment" professional has you SIGN a document -- that you must read very carefully -- stating that any "advice" they provide does not include income tax advice. They may know what they are saying,  but I highly recommend you use a certified, up-to-date tax professional.

Be very wary of "tax preparers" who work out of temporary locations like storefronts (or anything on wheels) or advertise on the internet. Avoid them for tax advice. 

I recommend you be very fearful of the following things: (in order of Richter-scale magnitudes)

#1 God.

#8 The IRS. 

#7 A jury of your peers. 

#6 Judge Judy.

#5 Force majeure.

#4

#3 Your parents.

#1 Life coaches.

I sincerely hope this coaching helps. 

1. What specific tasks would you need assistance with like the examples we mentioned above? If you don't have any, mention that below.

I will need tax advice when I start selling securities and and whether or not Roth IRA's make sense this late in the game.

2. Do you currently or plan to need a financial planner or advisor in the future? What questions will you consider before making that decision? 

I do not currently use a financial planner or advisor.  I am heavily leaning towards continuing on my own for my financial planning needs and asset allocation selection.  I have recently found a financial planning software program that fits my needs well as far as the planning side goes.  It does not help me pick investments.  For that I will rely on AAII to help guide me.  

If anyone would like more info on the financial planning software Privately Reply to me and I will tell you more about it.  I am not affiliated with the company in any way, just a user of the software.  It helped me tremendously so if it would help you I would be happy to share.  I hope it's okay I mentioned it here.

Deciding Whether to Work with a Financial Professional

Now that you've considered your potential constraints, listed out your accounts and thought about funds versus individual securities, it's time to focus on who will be managing your portfolio.  

Reflect 

In this lesson, you will be deciding whether to work with a financial professional based on your preferences. 

The first question you will want to reflect upon is, "do you require specific assistance for a task like taxes or estate planning? If so, you may want to rely on a tax advisor or an estate attorney. In contrast, if you need general financial planning you may want to seek out a planner to periodically meet with about your overall finances or an advisor to physically manage your portfolio. 

Acknowledging and understanding how much assistance you will need and for what tasks is essential before moving forward. Identifying your investment management preferences is crucial before we begin the next section: "S" - Selecting and Managing Your Investments, where we will delve into how to choose specific assets for your portfolio. 

Engage 

If you haven't done so already, please complete the "Identifying Your Investment Management Preferences" worksheet, which assesses what type of investment management preference may be right for you.  

Then, participate in the discussion below to understand how other AAII members think when deciding whether or not to rely on a financial professional. 

Remember to attend or watch a replay of the PRISM Webinar: Using Your Personal Preferences to Find the Right Investment.

Participate 

Complete the worksheet and answer these two questions in the discussion below: 

1. What specific tasks would you need assistance with like the examples we mentioned above? If you don't have any, mention that below.
2. Do you currently or plan to need a financial planner or advisor in the future? What questions will you consider before making that decision? 

Discussion Example 

1. This year, because my taxes have changed and I have more investments than I previously had, I will be relying on a financial professional to advise me on new tax laws, deductions, my ROTH IRA, etc. 
2. I am not planning on having a financial planner or advisor because my portfolio has not reached that level yet – still in its infancy stages and I can rely on AAII's tools/resources to help me for the time being.  

View and download the Identifying Your Investment Management Preferences worksheet