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David Rosenstrock, CFP Wharton Wealth Planning

Financial Advisor – Wharton Wealth Planning, LLC

Erin and David talk about how people can choose the right financial advisor in today’s marketplace. Explaining the different types of financial advisors, and the importance for consumers to understand the differences between them. The three broad types of classifications used for financial professionals are:

1. Fiduciary Advisors
2. Non-Fiduciary Advisors
3. Hybrid Advisors.

Fiduciary advisors are required to put their clients’ best interests first, while non-fiduciary advisors may follow a suitability standard, offering fewer protections to clients. Advisors with certain licenses are allowed to collect commissions on the sale of investment products. It is important for clients to be aware of these differences and choose an advisor that aligns with their needs and preferences.

Having an actual written formal financial plan can provide several benefits that people may not realize. But what is a formal financial plan? It is a formal plan that provides structure, clarity, and peace of mind. It helps you stay focused on your goals, navigate potential challenges, and make informed decisions about your financial future. Having a formal financial plan also provides peace of mind. In times of market volatility or economic uncertainty, it is natural to feel anxious about your financial future. However, when you have a well-thought-out plan in place, it can help you stay grounded and prevent panic-driven decisions. This can be extremely stress-reducing and allow you to make more rational decisions about your finances.

Lastly, it’s important to remember that a financial plan is not a one-time document. Life circumstances often change, and it’s crucial to adjust your plan accordingly. Whether it’s a new job, a marriage, the birth of a child, or any other significant life event, your financial plan needs to adapt to these changes to remain effective.

Based on the present economy, David mentions that he believes that both bonds and stocks should have a role in people’s portfolios. The allocation percentages will depend on an individual’s risk profile. Equities, or stocks, offer good value today as they provide protection against inflation, which is often overlooked. Bonds, on the other hand, offer more value in fixed income than they have in the past decade. This presents an opportunity for those planning for retirement as they can benefit from higher interest payments and principal protection.

In terms of advice for retirement, it’s never too late to make changes in the right direction. Retirement should be a time of freedom, enjoyment, and security, but it’s important to plan with attention and expect the unexpected. Being proactive rather than reactive can have a significant impact on your success.