Three Reasons It May Be Time to Delegate Your Finances
Written by: Cameron Hendricks
Delegation can improve your finances, reduce stress, and let you focus on what is most important to you.
“The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling while they do it.” – Theodore Roosevelt, 26th U.S. President
Listening to a new podcast by NPR called How I Built This, I’ve learned the beginning of many great companies such as Zappos, Whole Foods, and Kate Spade among others. They all started out as very small operations, but as the business grew and became more complex, the owners became overwhelmed with uncharted territory and began delegating our tasks or outsourcing certain operations to those who were experts in that particular field just as the quote from Theodore Roosevelt alludes to.
This is very similar to how many of our clients determined it was time to seek out a financial planner to handle their finances. As their careers and family lives progressed their investments, tax situation, goals for their money, and family goals became more complex and involved.
3 Reasons It May Be Time To Delegate
They determined that they could no longer comfortably accomplish three things:
- They didn’t have the confidence that they could handle the emotional aspects and patience it took to manage their investments. They wanted the financial peace of mind knowing someone was looking out for them.
- They realized the more complex their finances became the more knowledge of taxes, insurance, investment markets, retirement plans etc. was needed. To mitigate against the stress this creates, it was time to seek out an expert.
- They didn’t have the time it takes to stay on top of various components of the investment markets, analyze the funds in their 401k, or how best to build their portfolio to be tax efficient. Their time was better spent on things that mattered most in their lives; family, relationships with their spouse, or running their own business. Instead of spending Saturday mornings surrounded by investment statements, they would rather spend time enjoying their weekends.
It was time to delegate just like the founders of the previously mentioned companies had done and in this case, outsource the management of their finances to a CERTIFIED FINANCIAL PLANNER ™.
It makes sense though, when you’re sick you go to the doctor, when you need legal advice you seek an attorney and when your pipes burst you hire a plumber.
If the points above resonate with you, then now may be the time to seek out a financial planner who will manage your finances in a fiduciary manner so that you can ensure you are making prudent financial decisions, have financial peace of mind, and prioritize your life in a way that accomplishes your ultimate goals and objectives.
Don’t Be Tempted to Persuade Your Clients
Recently, I've been seeing a lot of articles about Advisors persuading clients to move from active management to passive management. Persuading clients to follow the way you manage investments is a big mistake. Do this instead.
Click on image above to watch the video.
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