With Wealth Comes Great Responsibility!
Why is it that nearly 78 percent, of all NFL players are divorced, bankrupt or unemployed two years after leaving the game? Why do an estimated 33% of lottery winners file for bankruptcy after their windfall? Why do stars such as Mike Tyson, Michael Jackson, Burt Reynolds, and Kim Basinger, who all made millions of dollars a year at one time, file for bankruptcy? With great wealth comes a greater responsibility: how to manage it!
Many who have not prepared for great wealth do not know how deal with the financial issues that arise almost immediately. Having a team of wise advisors is critical. These advisors can help set up trusts to shelter your money from taxes and to ensure that the money goes to your heirs ministries and specified charities when you die. They can also help you minimize the taxes you pay this year and in the upcoming years, and they can help develop an investment strategy based on your short- and long-term needs.
During your lifetime, you may come into an unexpected financial blessing or increase. If this occurs, God will test your heart and see if you will be a trustworthy steward of the wealth He has entrusted to you. Those who are found to handle blessings wisely and with a kingdom focus will often be rewarded with a second wave of blessing that will far exceed the first. You need to show that you can handle blessings in order to receive more. Your preparation today, even if you do not currently possess great wealth, will pay huge dividends when you gain wealth in the future.
Why hire a financial planner?
Tiger Woods is arguably one of the best golfers of all time. One of the greatest observations that stand out for me is that no matter what level of success he has achieved, he has always used a coach, from the early days with his dad to the coach he has today. The names may change from time to time, but he always has one.
Ponder this: Tiger Woods is taking constructive feedback from a golfer who is less skilled than he is. Imagine for a moment what it would be like if you were one of the best in the world at what you do for a living. Would you be humble enough to admit that you can improve?
Hiring a financial “coach” (planner, advisor, etc.) allows an unbiased individual to point out mistakes that you may never see and help you potentially improve upon your results. As technology, research, and the financial world become more complex, the need for a professional advisor increases.
Wherever you are in your financial life (success or failure or in between), you can always do better than where you are today. If you are committed to integrating your personal faith into your financial plan and are in it for the long haul, you should get a personal coach. You need feedback on your progress toward getting better. Successful people and those who want to be are usually the type of people who hire a financial planner.
4 common questions about financial planners
From the hundreds of public talks I have given over the last ten years, I have found that the general public is quite confused about how to choose a financial planner. I have put together four of the most common questions I have been asked over the years:
1. What does a financial planner do?
Well, that depends. Many individuals refer to themselves as “financial planners,” but not all perform true comprehensive financial planning. Investment, insurance, and tax professionals sometimes specialize in certain areas of financial planning (such as retirement planning, estate planning, tax planning, or investment management). A Certified Financial Planner™ professional is qualified to give you comprehensive financial advice as a result of examination, continuing education, board certification, and accumulated experience. In general, individuals who call themselves “financial planners” aim to help you plan for your goals and needs and improve your unique financial situation.
2. What doesn’t a financial planner do?
A financial planner cannot make you a thriftier shopper, a better saver, or help you earn more money. Ideally, he or she will look at your financial “big picture” and help you work to enhance it via money management. Depending on their credentials, they may recommend specific investments, long-run investing strategies, insurance options, retirement planning, risk-management methods, and more.
3. Who needs a financial planner?
If you have some significant assets built up (a home, a retirement fund, savings, etc.) and are wondering about how to protect and/or grow those assets, you’re probably ready for a financial planner. If you currently live paycheck to paycheck or have less than $10,000 combined in your savings and/or any retirement accounts, then you’re probably not yet in need of a financial planner. Researching savings strategies and taking a good look at your spending habits is a good place to start building wealth at a faster pace.