Getting Started with Financial Planning

A fee-only financial planner is compensated only by client fees, not commissions or product sales. This structure removes conflicts of interest that exist when advisors earn commissions on products they recommend. Comprehensive planning typically covers cash flow, tax strategy, investment management, retirement projections, insurance review, estate planning, and education funding. The planner coordinates these areas into a cohesive strategy rather than addressing them in isolation.

Common triggers include a major life change (new job, marriage, divorce, inheritance, approaching retirement), feeling uncertain about whether you are on track, or having financial complexity that exceeds your comfort level. If you find yourself Googling the same financial questions repeatedly, that is often a signal. The value of planning tends to increase with complexity, but even straightforward situations benefit from an objective second opinion.

Most planners will ask for recent tax returns, investment account statements, employee benefits summaries, insurance policies, and any estate documents (will, trust, powers of attorney). Having a rough monthly budget or spending estimate is also helpful. Beyond documents, the most productive first meetings happen when you have thought about what you want your money to do for you, not just how much you have.

Fee-only planners typically charge in one of three ways: a percentage of assets under management (commonly 0.5-1.5%), a flat annual retainer, or hourly rates. HealthyFP uses transparent, published pricing so you know exactly what to expect. The cost should be weighed against the value provided: tax savings, optimized benefits, avoided mistakes, and the time you reclaim by delegating complex decisions to a professional.

A CFP (Certified Financial Planner) is trained in comprehensive financial planning including investments, taxes, insurance, estate planning, and retirement. A CPA (Certified Public Accountant) specializes in accounting and tax preparation. An EA (Enrolled Agent) is a federally authorized tax practitioner who can represent taxpayers before the IRS. Some professionals, like Bob Wolfe, hold multiple designations which allows them to integrate tax and financial planning rather than treating them separately.