31:["$","$L32",null,{"category":"$33","relatedArticles":[{"id":"cG9zdDoyNjAxNzQ=","databaseId":260174,"postId":260174,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1323,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTQ3MA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19470,"categoryId":19470,"link":"https://smartasset.com/financial-planning/articles","name":"Financial Planning","postCount":{"pageInfo":{"offsetPagination":{"total":293,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"financial-planning","ancestors":{"nodes":[{"name":"Financial Advisor","slug":"financial-advisor","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Financial Advisor","id":"dGVybTo3OTY5","slug":"financial-advisor","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$34","date":"2024-08-28T18:04:57","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyNjAxNzU=","databaseId":260175,"altText":"A couple working with a financial therapist.","date":"2024-08-28T17:59:27","fileSize":14027743,"mimeType":"image/jpeg","modified":"2024-08-28T18:00:10","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/08/iStock-1227091052.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-8-28","readable":"August 28, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjo3Ng==","databaseId":76,"userId":76,"avatar":{"url":"https://secure.gravatar.com/avatar/ff1d12e3cebfaa1fe2b25aef26174d63?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Becca Stanek is a graduate of DePauw University. Becca is an experienced writer/editor who serves as a retirement expert for SmartAsset. She's passionate about helping people understand the sometimes daunting ins and outs of personal finance. Becca is a member of the Society for Advancing Business Editing and Writing, and her work has appeared in Time, The Week, Lending Tree and the Mic. Becca grew up in the Midwest and now lives in New York.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Becca","fullName":"Becca Stanek","lastName":"Stanek","name":"Becca Stanek","postCount":{"pageInfo":{"offsetPagination":{"total":19,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"bstanek","__typename":"User"},"reviewedBy":null,"writtenBy":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. 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A financial therapist helps individuals and couples address the emotional and psychological aspects of money management. By blending financial planning with therapeutic techniques, a financial therapist provides guidance on issues like money-related stress, financial behaviors and communication around finances. This specialized professional works to uncover the root causes of financial challenges, whether they stem from past experiences or current financial habits. With a focus on overall financial well-being, a financial therapist can help clients develop healthier relationships with money and achieve their financial goals.

","

If you want to develop a balanced relationship with money, a financial advisor could offer you personalized guidance and education to help you make smart financial decisions.

","

What Is a Financial Therapist?

","

A financial therapist specializes in helping clients work through emotional and psychological aspects of money. Their expertise often includes addressing deep-seated beliefs about money, understanding spending habits and improving financial communication, particularly in relationships.

","

Financial therapists work with individuals and couples to explore their relationship with money, uncovering how past experiences and emotions influence their current financial behaviors.

","

Common areas of focus include resolving money-related conflicts in relationships, managing financial anxiety and developing healthier financial habits.

","

Financial Therapy in Action

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As an example of how financial therapy works, take the example of a couple who works with a financial therapist. One partner is focused on building a financial safety net, while the other enjoys spending on experiences and valuing the present moment. This difference in money management styles has led to frequent arguments, creating tension in their relationship.

","

A financial therapist would help them explore the underlying reasons for their behaviors—perhaps the first partner grew up in a household where money was tight, driving them to seek security, while the second partner might have grown up with a focus on enjoying life without worry.

","

Through sessions, the financial therapist guides the couple in understanding each other’s perspectives and developing a financial plan that respects both of their needs. The therapist might help them establish a balanced budget that allows for savings while setting aside money for experiences, which could help ease tension in their relationship and promote a healthier, more collaborative approach to their finances.

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Common Areas of Focus

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Financial therapists commonly focus on several key areas, including these five:

","$46","

Who Can a Financial Therapist Help?

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A financial therapist can help a wide range of individuals and couples dealing with financial stress, anxiety or conflict. They are particularly beneficial for those who struggle with money-related communication in relationships, whether it’s between partners, spouses or family members. Individuals facing significant financial decisions, such as buying a home or planning for retirement, may also benefit from the emotional support and guidance a financial therapist provides.

","

Additionally, people who have experienced financial trauma, such as job loss, bankruptcy or significant debt, can find healing through financial therapy. Those who find themselves stuck in unhealthy financial patterns—like compulsive spending or extreme frugality—can also benefit from working with a financial therapist to develop healthier financial habits and a more balanced relationship with money.

","

How to Find a Financial Therapist

","

","

Finding a financial therapist can start with a search through professional organizations like the Financial Therapy Association (FTA), which offers a directory of certified financial therapists. This ensures the therapist has met specific educational and ethical standards.

","

Another option for finding a financial therapist is to ask for referrals from financial advisors, therapists or trusted individuals who have had positive experiences with financial therapy. Online platforms that specialize in financial wellness may also provide listings or recommendations for financial therapists.

","

When looking for a financial therapist, it’s important to research and verify credentials, looking for professionals who hold certifications such as Certified Financial Therapist (CFT-I™) or similar designations. Additionally, scheduling an initial consultation can help determine if the therapist’s approach aligns with your needs, ensuring you feel comfortable discussing your financial concerns with them.

","

How to Become a Financial Therapist

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Becoming a financial therapist requires a combination of education, specialized training and experience in both financial planning and mental health counseling.

","

Typically, aspiring financial therapists start with a degree in either finance, psychology or a related field. A background in financial planning, social work or counseling is essential, as financial therapists need to understand both the technical aspects of financial management and the emotional and psychological impacts of money.

","

After obtaining a degree, professionals often pursue advanced certifications, such as the CFT-I™ designation, offered by the Financial Therapy Association. This certification requires a mix of education and experience and involves passing a comprehensive exam that covers financial therapy concepts, ethics and techniques.

","

In addition to formal education and certification, aspiring financial therapists should gain practical experience in both financial planning and counseling. This might involve working as a financial advisor, therapist or counselor, where they can develop the skills needed to address clients’ emotional and financial needs.

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Bottom Line

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","

Financial therapy offers a blend of financial planning and emotional support, which could help individuals and couples address the often-overlooked psychological aspects of money management. Whether you’re dealing with financial stress, communication issues or unhealthy spending habits, a financial therapist can provide the guidance needed to develop a healthier relationship with money. By working with a skilled professional who understands both the financial and emotional dimensions of money, you can take meaningful steps toward achieving financial well-being and harmony in your personal and financial life.

","

Tips for Financial Planning

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Photo credit: ©iStock.com/fizkes, ©iStock.com/Ridofranz, ©iStock.com/Anchiy

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\n","featuredImage":{"id":"cG9zdDoyNjgxNDI=","databaseId":268142,"altText":"How to Amend a Florida Will With a Codicil","date":"2024-11-12T16:56:47","fileSize":180007,"mimeType":"image/jpeg","modified":"2024-11-12T16:56:59","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/11/iStock-1503298098.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-11-12","readable":"November 12, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMzY=","databaseId":136,"userId":136,"avatar":{"url":"https://secure.gravatar.com/avatar/1d295f71ad5f26fc505155b8d7e5e2a0?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Jeff is a Writer/Editor for SmartAsset. He's an expert in a variety of personal finance topics, such as investing, banking and retirement. Jeff has received his JD and MBA and has been featured in a number of publications, such as Investopedia, The Street, Forbes, Yahoo! Finance and more. He currently resides in Utah with his wife and five children, where they cheer for the Denver Broncos and make it to the water to sail whenever given the chance. Jeff currently holds the Certified Educator in Personal Finance (CEPF®) designation.","additionalMeta":{"expertise":"Financial Planning, Small Business, Retirement, Banking","__typename":"User_Additionalmeta"},"email":null,"firstName":"Jeff","fullName":"Jeff White, CEPF®","lastName":"White, CEPF®","name":"Jeff White, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":16,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"jwhite","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":true,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/financial-advisor/how-to-amend-a-florida-will-with-a-codicil","metaDesc":"Using a codicil to amend a will is one of the ways to make it legally binding in Florida. Here's how it works and what you need to know.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"How to Amend a Florida Will With a Codicil","__typename":"PostTypeSEO"},"slug":"how-to-amend-a-florida-will-with-a-codicil","status":"publish","title":"How to Amend a Florida Will With a Codicil","uri":"/financial-advisor/how-to-amend-a-florida-will-with-a-codicil","tags":{"nodes":[{"name":"news-sitemap","__typename":"Tag"}],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":null,"editedBy":{"id":"dXNlcjoxMzY=","databaseId":136,"userId":136,"avatar":"$49","description":"Jeff is a Writer/Editor for SmartAsset. He's an expert in a variety of personal finance topics, such as investing, banking and retirement. Jeff has received his JD and MBA and has been featured in a number of publications, such as Investopedia, The Street, Forbes, Yahoo! Finance and more. He currently resides in Utah with his wife and five children, where they cheer for the Denver Broncos and make it to the water to sail whenever given the chance. Jeff currently holds the Certified Educator in Personal Finance (CEPF®) designation.","additionalMeta":"$4a","email":null,"firstName":"Jeff","fullName":"Jeff White, CEPF®","lastName":"White, CEPF®","name":"Jeff White, CEPF®","postCount":"$4b","slug":"jeff-white-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybTo3OTY5","children":"$4e","databaseId":7969,"categoryId":7969,"link":"https://smartasset.com/financial-advisor/articles","name":"Financial Advisor","postCount":819,"slug":"financial-advisor","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":true,"contentBlocks":["

In Florida, one of the most efficient ways to update a will without rewriting the entire document is by using a codicil. A codicil is a written document that allows you to make specific changes to your existing will. The Florida codicil to will form is available online, which makes the process even easier for residents. However, a codicil must be processed with the same legal formalities as the original will, including being signed in the presence of witnesses. Consulting with an estate planning attorney can help ensure the codicil is legally binding and avoid disputes among beneficiaries.

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Work with a financial advisor to help you protect your financial assets and to properly plan for the future.

","

How a Codicil Works in Florida

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A codicil is a legal document that allows individuals to make amendments to their existing will without having to rewrite the entire document. In Florida, the codicil form itself is straightforward but requires careful attention to legal formalities to ensure the changes are valid. The codicil process must be handled like a will, meaning it must be signed by the person who created it, also known as the testator, in the presence of two witnesses who also sign the document. This ensures that the codicil is legally binding and reflects the testator’s estate planning strategy. It’s important to note that a codicil can modify, add to, or revoke parts of a will, but it cannot replace the entire document.

","

While a codicil is a convenient tool for updating a will, it is not without potential pitfalls. Each codicil must be carefully drafted to avoid inconsistencies or contradictions with the original will. Multiple codicils can complicate the probate process, leading to confusion or disputes among beneficiaries. Therefore, it is advisable to limit the number of codicils and ensure that each one is clear and precise. Engaging a qualified attorney can help mitigate these risks and ensure that the codicil is properly executed.

","

Steps to Properly Amend Your Will With a Codicil in Florida

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Amending a will requires an exact process to take place for the change to be legally binding. Here are the steps you may want to consider to make sure you’re doing it the right way:

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Consult with an Attorney: While it is possible to draft a codicil on your own, consulting with an attorney ensures that the document complies with Florida law. An attorney can provide guidance on the language and structure needed to avoid potential legal challenges.

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Draft the Codicil: Clearly state the changes you wish to make in the codicil. Be specific about which parts of the will are being altered, added, or removed. This clarity helps prevent misunderstandings and ensures your intentions are honored.

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Sign the Codicil in the Presence of Witnesses: Florida law requires that the testator must be of sound mind and at least 18 years old. The codicil must be in writing and signed by the testator in the presence of two witnesses, who must also sign in the presence of the testator and each other.

","

Store the Codicil Safely: Keep the codicil with your original will in a secure location, such as a safe deposit box or with your attorney. Inform your executor or a trusted family member about the location to ensure it is easily accessible when needed.

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Always consult with a legal expert in the state to ensure you’re making changes that will stand up to a legal challenge.

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Alternative Ways to Amend Your Will in Florida

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Sometimes, the changes you wish to make are significant enough that creating a new will is the best option. This approach can help avoid confusion and potential legal disputes among heirs. When drafting a new will, it’s important to explicitly revoke all previous wills and codicils to ensure that only your most recent intentions are honored.

","

Revoking a will is another method to consider if you wish to make substantial changes. In Florida, a will can be revoked by physically destroying it, such as tearing or burning, with the intent to revoke it. Alternatively, you can create a new will that includes a clause revoking all previous wills. This method is often used when individuals undergo major life changes, such as marriage, divorce or the birth of a child, which may necessitate a complete overhaul of their estate planning.

","

With the advent of technology, digital amendments and electronic wills (e-wills) make it possible to create a will online. Florida is one of the few states that legally recognize e-wills, provided they meet specific criteria. This includes being signed electronically in the presence of an online notary and witnesses.

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Bottom Line

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Amending a Florida will with a codicil is a straightforward process that can ensure your estate plan remains up-to-date with your current wishes. This can be particularly useful for minor adjustments, such as changing an executor or updating beneficiaries. However, it is crucial to ensure that the codicil is executed with the same formalities as the original will so it may be beneficial to seek guidance from a financial advisor or legal counsel before attempting to make changes.

","

Tips for Estate Planning

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Photo credit: ©iStock.com/shapecharge, ©iStock.com/fizkes, ©iStock.com/fizkes

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\n","featuredImage":{"id":"cG9zdDoyNjM4OTA=","databaseId":263890,"altText":"value of a financial advisor","date":"2024-09-30T23:22:32","fileSize":54765,"mimeType":"image/jpeg","modified":"2024-09-30T23:22:38","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/09/group-of-business-persons-talking-in-the-office.jpg_s1024x1024wisk20cC4PXVuMyeURzuu1VozPxMDEwl7PtesbFCgK8IZLIumw.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-10-1","readable":"October 1, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjo3Mw==","databaseId":73,"userId":73,"avatar":{"url":"https://secure.gravatar.com/avatar/a315ec8e032d3b1a0d5e36b7e0cde587?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Chris Thompson is Senior Managing Editor of SEO at SmartAsset. He's an expert in many areas of personal finance, including retirement, estate planning, savings, taxes and financial planning. He has worked in the personal finance industry for nearly a decade as both an editor and writer. Chris studied communications in Austria and ultimately graduated with a journalism degree from Montclair State University, where he also received the coveted Journalism Achievement Award.","additionalMeta":{"expertise":"Retirement, Estate Planning, Savings, Taxes","__typename":"User_Additionalmeta"},"email":null,"firstName":"Chris","fullName":"Chris Thompson","lastName":"Thompson","name":"Chris Thompson","postCount":{"pageInfo":{"offsetPagination":{"total":75,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"cthompson","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/financial-advisor/value-of-a-financial-advisor","metaDesc":"The value of hiring a financial advisor is the net of how much they add to your wealth minus what you pay them. Here's what you need to know.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"Understanding the Value of Hiring a Financial Advisor","__typename":"PostTypeSEO"},"slug":"value-of-a-financial-advisor","status":"publish","title":"Understanding the Value of Hiring a Financial Advisor","uri":"/financial-advisor/value-of-a-financial-advisor","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo5NA==","databaseId":94,"userId":94,"avatar":"$5a","description":"Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.","additionalMeta":"$5b","email":null,"firstName":"Eric","fullName":"Eric Reed","lastName":"Reed","name":"Eric Reed","postCount":"$5c","slug":"eric-reed","__typename":"User"},"editedBy":{"id":"dXNlcjo3Mw==","databaseId":73,"userId":73,"avatar":"$5f","description":"Chris Thompson is Senior Managing Editor of SEO at SmartAsset. He's an expert in many areas of personal finance, including retirement, estate planning, savings, taxes and financial planning. He has worked in the personal finance industry for nearly a decade as both an editor and writer. Chris studied communications in Austria and ultimately graduated with a journalism degree from Montclair State University, where he also received the coveted Journalism Achievement Award.","additionalMeta":"$60","email":null,"firstName":"Chris","fullName":"Chris Thompson","lastName":"Thompson","name":"Chris Thompson","postCount":"$61","slug":"chris-thompson","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTQ2OA==","children":"$64","databaseId":19468,"categoryId":19468,"link":"https://smartasset.com/advisor-basics/articles","name":"Advisor Basics","postCount":132,"slug":"advisor-basics","ancestors":"$66","parent":"$69","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Hiring a financial advisor requires knowing what you want out of an advisor before you actually start looking for one. Depending on what you want help with, there’s quite a bit of value they can offer beyond the typical DIY approach to financial planning, retirement planning, investing and other financial ventures most people embark on. There are also less obvious ways advisors can be helpful, including with the emotional side of investing or the time savings of not having to build and manage your own financial plan.

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Do you want some help finding a financial advisor who serves your area? Try using SmartAsset’s free advisor matching tool today.

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What Does a Financial Advisor Do?

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In short, a financial advisor helps you with your money. This can mean a lot of things depending on your specific situation and needs, but in general there are three categories of advisors:

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Financial planners
Investment managers
Wealth managers

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A financial planner helps you understand your money and how to utilize it. They can analyze your budget, provide overall education and help you build long-term financial plans around specific goals. This is the person most likely to answer the question, “what should I do to build a retirement plan?”

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An investment manager helps you select specific investments and manage your portfolio. They recommend what to buy and sell, advise you on specific asset classes based on risk tolerance and often handle the active trading involved with your portfolio. This is the person most likely to answer the question, “what should I invest in to build a retirement plan?”

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A wealth manager helps you to preserve and grow wealth once you have it. They handle concerns like tax management, large-scale investments, legal concerns and estate planning. This often involves elements of both financial planning and investment management. This is the person most likely to answer the question, “how should I holistically manage my money before and in retirement?”

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The Raw Numbers of a Financial Advisor

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When you consider the value of a financial advisor, one way to look at this is through a pure numbers perspective. Basically, do you have more money now than you would have without hiring your advisor? There are many ways to think about this, but this is basically what you’re looking at: are your returns after advisor fees and investment costs higher than the standard market return you could get without an advisor?

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Market return is the return you would have by investing in an S&P 500 index fund, which averages about 10% per year. As an equity-based investment, this can be a volatile asset class, so risk-averse investors like retirees might want to use a different control investment, like bonds. But for long-term investors looking to grow their money, the S&P 500 is often a good baseline.

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Your return after costs and fees is the money you have made with your financial advisor. This could be through their advice or their direct investment management, less the costs they charged.

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The value of your client-advisor relationship, then, is the difference between what you have made from your financial advisor versus with what you would have made from a simple S&P 500 index fund. Generally speaking, your financial advisor is providing mathematical value if your portfolio’s returns exceed the control group by more than the advisor’s costs. But there’s often more to an advisor’s services than just pure investing math.

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The Educational Value of a Financial Advisor

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You can also look at a financial advisor’s value through your own education and growth. Finance is an incredibly complicated subject. In recent decades, that has become an acute issue for households as the 401(k) and IRA system has replaced pensions and Social Security as the main sources of retirement income. Today, everyone needs at least a little financial sophistication to build their future, and an advisor can help with that.

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They are professionals who can help you understand things like your tax liabilities and opportunities, different retirement savings vehicles, ways of saving and the various types of asset classes. They can help you learn how to balance risk against reward, how to make an income plan, how to plan for the future and much more.

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The simple truth is that finance is like law, health, home maintenance and many other fields. Too many people think that this is something an adult should simply know how to do, but the only way to know is by learning. A financial advisor can help fill this void for many people, but just be sure to work with an advisor that has an expertise in the areas you’re concerned with.

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The Strategic Value of a Financial Advisor

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Finally, you can consider the value of a financial advisor strategically. How does this person help you build a long-term plan? And how do they help you manage and execute that plan over time? More specifically, as Edward Jones writes, a major issue advisors can help with is to “replace reaction with reason.”

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It’s common for people to react to market events emotionally. While reacting to the market in real time can feel reasonable, it can lead to some unfortunate happenings in your portfolio. A financial advisor can help you understand these market fluctuations, and can help you avoid selling assets and turning those on-paper losses into real ones.

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Many financial advisors can also help you build a plan to retire, send a child to college, buy a house and more. This can involve education, budgeting, creating a monthly savings plan, selecting assets for your portfolio and more. Then, they can help you monitor that plan to make adjustments over time.

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The value of this relationship is expressed in your overall financial security and well-being. This is someone who can help make finance make sense, so that you aren’t best-guessing your investments. For many, this is often the real and hidden value a financial advisor can provide.

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Bottom Line

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Understanding the value of your financial advisor depends a lot on what you want out of this relationship. Whether you want to build wealth, learn about finance or build a strategy, pay attention to this relationship to make sure it’s worthwhile.

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How to Choose a Financial Advisor

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Money market accounts (MMAs) have long been a popular choice for those seeking a balance between earning interest and maintaining easy access to their funds. But are money market accounts liquid? These accounts are designed to offer a higher yield than traditional savings accounts while still providing the flexibility to access your money when needed. Typically, MMAs allow for a limited number of monthly withdrawals or transfers, making them more liquid than certificates of deposit (CDs) but slightly less so than regular savings accounts. This unique blend of accessibility and interest-earning potential makes money market accounts an attractive option for those who want to keep their funds relatively liquid while still benefiting from a competitive interest rate. If you are considering a money market account, this is what you need to know about their liquidity.

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Ask a financial advisor how a money market account can help shape your financial portfolio.

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How Money Market Accounts Work

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A money market account (MMA) is a type of savings account that typically offers higher interest rates compared to traditional savings accounts. It is designed to provide a safe place for your money while allowing you to earn a competitive return. MMAs are insured by the Federal Deposit Insurance Corporation (FDIC) up to the legal limit, which adds a layer of security for account holders.

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Unlike regular savings accounts, money market accounts often come with check-writing privileges and debit card access, offering a blend of savings and checking account features. This flexibility makes them an attractive option for individuals looking to balance liquidity with earning potential.

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One of the key features of money market accounts is their interest rate structure. These accounts generally offer tiered interest rates, meaning the more money you deposit, the higher the interest rate you may earn. However, to benefit from these higher rates, MMAs often require a higher minimum balance compared to standard savings accounts. It is important to be aware of these requirements, as failing to maintain the minimum balance can result in fees that may offset the interest earned. Additionally, interest rates on MMAs can fluctuate based on market conditions, so it is wise to monitor these changes to ensure your account remains competitive.

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While money market accounts offer attractive features, they also come with certain limitations. Federal regulations typically limit the number of certain types of withdrawals and transfers from MMAs to six per month. Exceeding this limit can result in fees or even account closure. It is crucial to understand these restrictions to avoid unnecessary charges.

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Additionally, some financial institutions may impose monthly maintenance fees, which can be waived if you meet specific criteria, such as maintaining a minimum balance. By carefully reviewing the terms and conditions of a money market account, you can make informed decisions that align with your financial goals.

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How Are Money Market Accounts Considered a Liquid Asset?

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Money market accounts are often considered a liquid asset due to their accessibility and flexibility. Unlike long-term investment vehicles, such as certificates of deposit or bonds, money market accounts allow account holders to access their funds relatively easily. This accessibility is crucial for individuals who may need to quickly convert their assets into cash without incurring significant penalties or waiting periods. Typically, money market accounts offer check-writing privileges and debit card access, making it simple for account holders to withdraw funds when necessary. This ease of access is a defining characteristic of liquid assets, which are assets that can be quickly and easily converted into cash.

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Another reason money market accounts are considered liquid assets is their ability to offer competitive interest rates while maintaining stability. These accounts often provide higher interest rates than traditional savings accounts, allowing account holders to earn more on their deposits. Despite the higher interest rates, money market accounts are generally low-risk, as they are insured by the Federal Deposit Insurance Corporation (FDIC) up to the applicable limits. This combination of competitive interest rates and security makes money market accounts an attractive option for those looking to maintain liquidity while still earning a return on their investment.

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For individuals seeking to balance liquidity with their financial goals, money market accounts can be an ideal solution. They offer the flexibility to access funds when needed, which is particularly beneficial for those who may face unexpected expenses or require quick access to cash.

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Pros and Cons of Investing in Money Market Accounts

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Investing in money market accounts can be an appealing option for those seeking a balance between safety and returns. These accounts offer a unique blend of features that cater to conservative investors. However, like any financial product, they come with their own set of advantages and disadvantages. Understanding these can help you make an informed decision about whether a money market account aligns with your financial goals.

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Pros of Investing in Money Market Accounts

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Cons of Investing in Money Market Accounts

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Minimum balance requirements: One downside is that money market accounts often require a higher minimum balance to avoid fees. This can be a barrier for some investors, particularly those just starting to build their savings. Failing to maintain the required balance can result in monthly fees that erode your earnings.
Limited transactions: Federal regulations typically limit the number of withdrawals or transfers from money market accounts to six per month. This restriction can be inconvenient if you need frequent access to your funds, making it less suitable for those who require more flexibility.

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Money market accounts offer a blend of safety, accessibility and potentially higher returns, making them a viable option for conservative investors. However, it is crucial to weigh these benefits against the limitations, such as minimum balance requirements and transaction restrictions, to determine if they fit your financial strategy.

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Bottom Line

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Money market accounts offer a unique blend of features that make them an attractive option for those seeking liquidity and a modest return on their savings. These accounts are known for their liquidity, allowing account holders to access their funds relatively easily compared to other investment vehicles. Typically, money market accounts provide the flexibility of writing checks or transferring funds, often with a limited number of monthly transactions. This makes them a convenient choice for individuals needing to access their money quickly while still earning interest.

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Tips for Investing

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