What does a financial planner do in your mind? Investment planning? Tax planning? Insurance planning? Retirement planning? Estate planning? Yes, those are some of the specific services a financial planner can offer. However, what are the real values a financial planner typically provides behind those services? This week I would like to share with you one of the best descriptions of the key value propositions that a good financial planner provides from Mitch Anthony. It articulates what you should expect from a good financial planner.
Most people believe that the money saved in your bank accounts are 100% safe. It's not necessarily true for everyone. Based on the data from the Federal Deposit Insurance Corporation (FDIC), more than 500 banks in the U.S. failed from 2001 to 2017. You may not get all your money back when your bank fails. This week I will talk about how safe your money is at the bank and how to make it safer if necessary.
Like many of you, I am a huge fan of the sign-up bonus offered by credit card companies. I don't consider myself as a credit card churner who is trying to get the bonus by opening and closing credit card accounts consistently. I only open new credit cards when I have large purchases or a travel plan. We haven't spent money on hotels for years not even for the five nights at one of the best hotels in London for our honeymoon and multiple short trips in the U.S. Again we are planning to have a trip to the Walt Disney World in Orlando this year for free. I always joke that the value of a travel hacking technique like proper arrangement to get sign-up bonus can easily justify our financial planning fees.
There are tons of resources online about how to maximize credit card points and miles, how to make a fancy trip for free, and many other travel hacking and credit card churning techniques. As a financial planner, instead of focusing on those very motivational things, I would like to remind you of four things that can be easily overlooked when churning credit cards. I will also share with you some of my own lessons and tips that I learned over the years.
Last year, I wrote a blog post to help people figure out whether you need to get some professional help on your finances and if so who you need. A couple of readers asked me afterward: What's the easiest way to identify the real "Financial Advisors/Planners" without contacting them directly? This week I will show you four simple steps to help you understand what a so-called "Financial Adviser/Planner" really is.