are financial planners worth it?

[Anonymous]

We have little to no savings and can only save 3% towards retirement at the moment.

I'm thinking we need some outside eyeballs.

Are they worth it?

If so, vote for your favorite one in the DMV (that can help MD residents).

Aaaand go!

[Anonymous]

My sense, as a low-income person by the standards of DCUM, is that a financial planner works well for people who need help trying to figure out how to diversify their holdings. But you aren't at that point yet -- you don't need a financial planner to tell you "save 3 to 6 months of living expenses, put as much as you can towards retirement, and pay off your debts."

Personally, I think that you should start with reading some personal finance books, and by tracking your spending through a program such as Mint, YNAB (I'm partial to YNAB) or even a spreadsheet, if you have some simple Excel skills. What you want to do is have a really solid idea of how much money is coming in and how EXACTLY it is going out. No approximating or guessing!

At the very least, if you devote yourself to a little bit of pre-reading, and you track your spending for three months, you'll be able to ask more targeted questions of a financial planner if you decide that you really DO need one -- instead of just wasting that professional's time (and your own) by asking basic stuff.

[Anonymous]

I agree with PP. Pay down debt and cut expenses.

[OTAlexFA]

Anonymous wrote:My sense, as a low-income person by the standards of DCUM, is that a financial planner works well for people who need help trying to figure out how to diversify their holdings. But you aren't at that point yet -- you don't need a financial planner to tell you "save 3 to 6 months of living expenses, put as much as you can towards retirement, and pay off your debts."

Personally, I think that you should start with reading some personal finance books, and by tracking your spending through a program such as Mint, YNAB (I'm partial to YNAB) or even a spreadsheet, if you have some simple Excel skills. What you want to do is have a really solid idea of how much money is coming in and how EXACTLY it is going out. No approximating or guessing!

At the very least, if you devote yourself to a little bit of pre-reading, and you track your spending for three months, you'll be able to ask more targeted questions of a financial planner if you decide that you really DO need one -- instead of just wasting that professional's time (and your own) by asking basic stuff.

Bingo.