Tag: Financial Planning

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Stash Wealth Financial Planning Review – The Planner for HENRYs

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Stash Wealth Financial Planning Review - The Planner for HENRYs

Millennials are a lot more interested in their personal financial well-being at a younger age than the members of the two generational cohorts that came before them. But what else would you expect of the kids that came of age during the financial crisis and saddled with an average $30,000 student loan debt?

Luckily, millennials also came of age during the digital revolution, and a number of the cohort’s members have created platforms designed specifically to help millennials handle their finances.

Online financial planner, Stash Wealth, is one of those resources.

What Is Stash Wealth?

Stash Wealth is the online financial planner dedicated to serving the HENRYs (High Earners, Not Rich Yet) of the world. The startup was founded in 2013 by former Wall Street executives Priya Malani and Rob Kovalesky to serve millennial high earners they felt had been ignored by traditional firms or who may be fearful of financial management.

Stash Wealth’s services include personalized financial planning and investment management. Clients can also get personalized advice from Stash’s in-house experts — dubbed “rebels” — on topics like estate planning, investing, taxes, and accounting. For additional assistance, the company provides financial information to the general public through articles on its blog.

This review only covers Stash Wealth’s financial planning offerings, but we briefly touch on their investment management services at the end of this post.

How Do You Know If You’re a HENRY?

Stash Wealth defines a HENRY as an individual — or couple — who’s already earning about six figures annually. That’s a tough bracket to reach considering only 2.7% of millennials earned $100,000 or more in 2015, according to data from the U.S. Census Bureau. But becoming a HENRY isn’t all about income.

Stash has created a quiz to help potential clients figure out if they qualify as a HENRY. If you’re not quite there yet, Stash Wealth has a partnership with invibed, which runs a low-cost Wealth Coaching program for about $450.

How Much Does Stash Wealth Cost?

Stash Wealth’s pricing makes it clear HENRYs are their target audience. You — or you and your partner — can complete a Stash Plan for a one-time fee of $997. The Stash Plan is a financial plan for your life that will address how and when you can reach all of your financial goals.

After your plan is created, you’ll graduate to Stash Management, a full wealth management service, which you’ll be charged for based on how much money Stash is investing for you. It has two payment tiers:

  • $50 per month for those with less than $50,000 in assets managed by Stash
  • 1.2% of the assets Stash manages for you annually ($100,000 invested = $1,200 annually) if Stash is managing more than $50,000 worth of assets

If you’re an entrepreneur, you can build a Stash Plan for Entrepreneurs for $1,597, but you’ll need to call to learn more about the entrepreneur’s plan.

What Do You Get for $997?

Stash Wealth will create a customized Stash Plan, which is a financial plan customized to your current and future needs. You’ll be prompted via email to fill out two documents that will help establish your “baseline,” then you’ll have two meetings with a certified financial planning duo who will create your Stash Plan.

Even at close to $1,000 plus ongoing management fees, Stash’s completely digital service is a cheaper alternative to paying $1,100 to $5,600 a year for the average personal financial adviser.

Unlike some other online financial advisory firms, Stash Wealth doesn’t offer a payment plan. In the FAQ on the website, the company explains the reasoning is because they want to be sure they are attracting clients who truly can afford the service and qualify as HENRYs.

Stash Wealth has a particular client in mind, so their pricing isn’t comparable to competitors like LearnVest, which will run you about a third of the cost at $299 for the initial financial planning fee, and they will charge $19 for ongoing financial planning, although the LearnVest program doesn’t include investment brokerage.

How the Stash Wealth Financial Planning Process Works

Every Stash Wealth client will receive a comprehensive financial plan. MagnifyMoney reviewed the process over the course of several weeks.

Your baseline paperwork

Shortly after you make your online payment to get started, you’ll receive an email from Stash asking you to do three things:

  1. Fill out your profile.

This is one of the two PDF forms that will be attached to the email. It will ask you to fill in basic information about yourself like your name, address, employment, and income. It will also have you enter basics related to your finances such as which banks you have relationships with, who you already use for money-related items like taxes, and how much you have in your emergency fund. This form will also ask for the same information about your significant other if you’re completing the Stash Plan as a couple.

  1. Schedule your baseline meeting.

In the email, you’ll see a link to book a meeting using the online scheduler, TimeTrade. Once it’s booked, you’ll get an email confirmation in your inbox.

  1. Complete and return the Baseline Workbook.

The final thing Stash asks of you before your meeting is to fill out your Baseline Workbook. Your workbook is an 8-page document that will dive deep into your financial business. You will trace where your money goes after you get paid, check off whether you use cash or credit more often, explain what your savings are consist of, and list your debts and assets, in addition to providing other information.

Stash understands this may take a while, so they give you some time and ask that you email the document back at least a couple of days before your scheduled baseline meeting.

Your baseline meeting

This will be your very first meeting with your Stash advisers. It will take place over video chat and recap all of the information you entered into your Baseline paperwork. The meeting should take no longer than an hour. Your planners will share a screen with you during the call to show you a Baseline Results document, which was created from your information. It will show, with charts and diagrams, how you spend your money, what your money map should look like, and how you’re doing so far saving for retirement.

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The Stash program is intended to be educational as well, so your advisers may sound very similar to your finance professors in college. They will spend a good portion of the time explaining things like a money map (see above) or how different kinds of retirement accounts work. They’ll also make sure to ask if you understood everything and will re-explain if necessary.

The “reverse budget”

Stash will create what they call a “reverse budget.” The reverse budget calculates how much you can spend guilt-free each month after subtracting your fixed and flexible expenses. They will show you a budget with and without debt, so you’ll be able to imagine how much extra cash you’ll have on hand once your debts are settled.

The homework assignments

After this call, you’ll get some more homework to complete before your second meeting. The second meeting is meant to help align your life to your reverse budget. I was advised to open up an online savings account with Capital One 360 and nickname it “emergency fund” and to keep a checking account open at a brick-and-mortar bank. I had just closed my checking and savings account with my brick-and-mortar bank, Wells Fargo, and opened checking and savings accounts with Ally, so I didn’t take this advice. I was earning 1% on my savings account with Ally anyway, which was slightly more than the 0.75% I would have earned at Capital One.

I did, however, set up multiple savings accounts for emergency, travel, and moving costs to correspond with my savings goals.

My other homework was to find my most-recent monthly statements for my credit card, my retirement accounts, and student loans and send this information to them as soon as I could.

The follow-up email includes a link to schedule your second call, which should take place in about three weeks, and will have a final workbook attached to it. A PDF copy of your Baseline Results will be attached to the email for your use.

Your Stash Plan Workbook: goal setting

Your Stash Plan Workbook will come attached to the follow-up email for your first call. It’s intended to make you think about your financial goals and how you’ll reach them. A major part of this workbook requires you to think of what you want your life to look like in retirement.

You might already keep a few basic goals in mind like saving for retirement (check) or an emergency fund (double check), but your workbook will force you to consider savings goals to which you may not have given any thought. Some examples: traveling twice a year, returning to school for a post-bachelor’s degree, taking a six-month hiatus from work in Europe, remodeling your home, or saving to care for your parents in their old age.

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You’ll rate each goal from 1 to 10 based on its importance to you, and make note of how much you think you’ll need and when you’ll need the money. For example, going back to school for a graduate or doctorate degree is about a 7 in importance to me, and I want to have about $25,000 saved for it and (ideally) start my post-college education in 2020. I also want to travel to see family members, who live in Ghana, every few years. I set that travel goal at about a 9 and allocated about $2,000 for a trip every two years.

The workbook continues to a section called “Retirement Lifestyle Goals,” which addresses any big dreams or goals you have for your life in retirement (think: buy a yacht) and asks you to put them down even if you’re not sure if you’ll be able to afford them. You’ll move on to a “Retirement Living Expense” section that asks you important questions like when you plan to retire, what your retirement income will be, and if you’re willing to delay retirement to reach all of your goals.

You’ll finish the workbook by filling out detailed information about all of your current assets, investments, and liabilities. While you’re doing all of this, be sure to gather any supplemental financial documents to send back digitally with your completed workbook. Examples include:

  • Bank and investment statements
  • Retirement account statements
  • College fund account statements
  • Employer benefits
  • Social Security Administration Statement
  • Liability statements
  • Insurance policies

Stash asks that you send in your completed Stash Plan Workbook and documents via email 10 to 14 days before your second call.

Filling out the workbook was a lot of work, but it was worth it. It took about an hour for me, and I only use one bank and one credit card and my only other debt is in student loans. Most of my time went to setting financial goals for the long life ahead of me. It was eye-opening as there were a lot of things I knew I wanted in life — like rental property — that I had yet to set a deadline or budget to. Completing the workbook helped me realize I should start saving now for almost any larger purchases I wanted to make within the next decade like a possible wedding or owning rental property. I was a little confused when it came to the investing and retirement parts of the document like retirement income but was able to complete the form using context clues.

I did have to fill out the form three times, as it had trouble saving some of the information I had input. I’m still unsure whether the problem was the way I was saving it to my computer or the form itself. In the end, it was no big deal. I typed up some of my goals in an email to supplement what the form had held onto.

Your Stash Plan meeting: how to execute your Stash Plan

Your final meeting with your advisers will explain to you exactly how to make your Stash Plan a success. During this meeting, your advisers will first check in with you to ask if anything about your financial situation has changed since you sent in your workbook. For example, I decided within the month to move to a significantly cheaper apartment, so my monthly budget had to be adjusted. My planner made note of that and sent me an updated Stash Plan with the follow-up email at no additional charge.

After your touch base, your advisers should walk you through the details of your new financial plan, which they will have up on a shared screen for you to see. They’ll speak with you about how you should budget for your savings goals and when you’ll likely reach them.

Your Stash Plan meeting: how to execute your Stash Plan

My advisers emphasized making the most of automation for my savings goals and any recurring expenses. This takes some element of human error out of the picture. I’d used automation before and found it would bite me in the ass when I forgot which date I’d set a service to credit my checking accounts. To avoid my unfortunate recurring lapse of memory, I set my automated payments for the day right after payday, and if I couldn’t change the due date, I used the budgeting app Mint, which has a bill reminder feature.

They will also give you a few suggestions for managing your new financial plan. My advisers suggested I open up a 0% balance transfer card (they recommended I use Chase Slate or Citi Simplicity) to help pay down my credit faster. They also recommended an app called Debitize, that lets you use your credit card like a debit card. The app pays off charges to your credit card with money from your checking account so you can build credit without overspending.

They also advised me to channel any extra funds I had to paying down my credit card debt faster, as it’s the highest interest debt I have. After my credit card was paid down, I was to use the extra money to build up my emergency fund.

In addition, the advisers suggested I consider adding a disability insurance policy and some estate planning documents to my life. I was told to ask my employer’s human resources department about disability insurance. For estate planning documents, they included a recommendation to a Stash Expert in the follow-up email. Finally, they explained to me what my next steps would be should I choose to graduate to Stash Management.

Next Steps: Investing with Stash Management

Once you have your financial plan set up, you’ll make the decision to either stop there or continue to Stash Management. This review only covers Stash Wealth’s financial planning offerings, but we did dig a bit deeper to look into their investment management services.

After your plan is created, you can choose to graduate to Stash Management, a full wealth management service, which you’ll be charged for based on how much money Stash is investing for you.

It has two payment tiers:

  • $50 per month for those with less than $50,000 in assets managed by Stash
  • 1.2% of the assets Stash manages for you annually ($100,000 invested = $1,200 annually) if Stash is managing more than $50,000 worth of assets

With Management, you’ll get ongoing help with financial planning. That includes your taxes, purchases, budgeting, combining finances with a significant other, planning for a baby, buying your first home, or anything else. You’ll have access to monitor your accounts and investments through an online portal, but you likely won’t have to do anything.

Stash gives you a unique ID so you can log on to the company’s online platform. You’ll grant Stash’s team permission to implement their suggestions for you like automating your savings and investing your money in the stock market. When you have a question, you can call, email, text, or even use Facebook’s messenger 24/7 to communicate with Stash.

Stash isn’t a robo-adviser like Hedgeable, Wealthfront, or Betterment. A human being will actually invest your money and communicate with you as needed.

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Pros and Cons of Stash Wealth for Financial Planning

Pro: Quick responses

I was impressed with Stash’s response time. If I had any problems filling out the PDFs or any questions, I could expect an answer to my email on the same day or within 24 hours at the latest.

Pro: Some face time

Both meetings with your financial planner will take place over a video chat, which adds a personal layer to the totally digital process. You won’t awkwardly stare at your adviser the entire time since they’ll be showing you your results or plan for most of the conversation, but I thought it was nice to put a face (and a smile) to who was handling my sensitive information.

Con: No mobile app

Stash Wealth is only accessible to you on a desktop, which can present an issue if you want to check on your plan or investment on the go. However, you do have the option to download your plan as a PDF, which most smartphones will allow you to pull up without cellular data or Wi-Fi.

Con: No budgeting software

Your Stash plan will lay out what you need to do, but it’s up to you to implement and track your progress — unless you pay for Stash Management. You can use other platforms such as the free version of competitor LearnVest or budgeting services YNAB or Mint to manage your financial information, goals, and more, but it would be convenient to have a budgeting platform to show you your awesome new plan right away.

Con: No credit score information

You’ll need to download a separate app it you want to monitor your credit score. Unlike other popular budgeting apps like Mint, or a credit monitoring service like Credit Karma, you won’t be able to see any information related to credit score or credit report information with Stash Wealth.

Other Financial Planning Platforms to Consider

There are a host of other robo-advisers and online financial planning tools that target millennials cropping up to choose from that you may prefer over Stash Wealth.

LearnVest

LearnVest Premium is a more-affordable alternative for those looking for personalized financial advice from an expert. If you sign up for LearnVest’s premium service, you’ll complete a process similar to Stash’s, where you’ll meet twice with an adviser who will create a plan for you and then have the option to pay for ongoing support. LearnVest costs $299 for the initial setup, then $19 a month for email access to a personal financial planner, in addition to the budgeting and goal setting features online dashboard features. With LearnVest, you won’t get investment advice.

XY Planning Network

The XY Planning Network is a network of fee-only financial advisers who focus specifically on Gen X and Gen Y clients. There are no minimums required to get started as a client, and advisers in the XY Planning Network are not permitted to accept commissions, referral fees, or kickbacks. In other words, no high-pressure sales pitches or hidden agendas. Just practical financial advice doled out at a flat monthly rate. The organization is location independent, offering virtual services that enable any client to connect with any adviser regardless of where the client resides.

Garrett Planning Network

A national network featuring hundreds of financial planners, the Garrett Planning Network checks many key boxes for millennials. All members of the Garrett Planning Network charge for their services by the hour on a fee-only basis. They do not accept commissions, and clients pay only for the time spent working with their adviser. Just as important for millennials, advisers in the Garrett Planning Network require no income or investment account minimums for their hourly services.

Mvelopes

Mvelopes is an app that provides a spinoff of the cash envelope budgeting system popularized by Dave Ramsey. Like Stash Wealth, its basic version is free and allows you to link up to four bank accounts or credit cards. Mvelopes has a second tier called Mvelopes Premier. It costs $95 a year, and you can link an unlimited number of bank accounts and credit cards, among other features. Mvelopes’ top tier, Money4Life Coaching, adds one-on-one coaching tailored to your financial needs, as Stash Wealth Premier does. However, there is no price for this tier specified on the website.

The Final Verdict

Stash Wealth is a great deal if you’re a HENRY, but it’s definitely not a program for everyone. It forces you, as a young high earner, to swiftly exit any present hedonist mindset you may have and consider your future seriously.

For me, it demonstrates how important it is to take advantage of extra funds and invest them into your future while you’re young, handsome, wealthy, and only have yourself to think about. But if you’re not making enough to have an extra $1,000 stashed away for financial planning, there are less-expensive alternatives you can use on your way to HENRY status.

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Featured, Reviews

The Ultimate LearnVest Premium Review — Online Financial Planning for $299 Upfront, $19/Month

Advertiser Disclosure

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

The Ultimate LearnVest Premium Review

If you’re young, or simply don’t have an extra $1,100 to $5,600 a year on average lying around waiting to pay a financial planner, it can be difficult to know where to turn for financial guidance. Fortunately, several online financial planning companies have made financial planning more affordable. LearnVest is one of many such companies that have cropped up in recent years to provide the service at a lower cost.

What Is LearnVest?

LearnVest is an online financial planning company that was founded in 2009 with a mission to give young professionals access to affordable financial planning services. The platform combines budgeting tools with resources for financial information and the opportunity to gain access to an online financial planner if you upgrade your package. The startup went on to raise $75 million in venture capital until it was finally acquired in 2015 by Northwestern Mutual. The merger allowed LearnVest to develop and expand its offerings. Since its founding, the platform has developed into a more affordable way for members of either gender to gain access to a financial planner and to create and manage a personal financial plan.

How It Works

LearnVest offers both a paid and unpaid version of its services. The free version gives you access to the company’s online budgeting tool and dashboard to help you manage your budget, similar to popular budgeting platforms like Mint and YNAB.

You can also peruse LearnVest’s Knowledge Center, where you’ll find a wealth of articles and videos with information about several financial topics.

If you are looking for personalized financial advice from an expert, you’ll need to sign up for the paid version, called LearnVest Premium. For an initial payment of $299 plus $19/month, the premium service comes with access to a personal financial planner in addition to the online dashboard features.

MagnifyMoney tapped staff writer Brittney Laryea to test out LearnVest’s financial planning service, LearnVest Premium, and review it here. Find out more about LearnVest and Brittney’s review below.

The LearnVest Premium Review

As a 22-year-old recent college graduate, I am in that important stage in life. I reviewed LearnVest from the perspective of someone who has never gotten professional financial advice before and is looking to get her financial life in order as she starts her career. My experience will certainly be different from, say, a single mother or an elderly couple facing retirement. But I tried to demonstrate how each element of the LearnVest experience works so anyone reading will get a sense of what they offer.

The LearnVest Premium Review

The Fees

For $299 up front, you’ll get access to a personal financial planner who will set up a time to speak with you on two separate occasions and work with you to create a personal financial plan. You can split the $299 payment into two payments of $149 or three payments of $99. After the two initial phone calls, you’ll pay LearnVest $19 each month for “ongoing support” from your planner via email.

At $299, LearnVest is certainly delivering when it promises to offer affordable financial planning services. The average financial planner charges an initial fee of $500 to $2,000 and then about $50 to $300 monthly for ongoing service.

$19 per month for ongoing financial planning is only a little more than Spotify premium customers pay for monthly subscriptions.

So far so good. But what are you really getting for that money?

Creating My “Smart Profile”

The first thing you’re prompted to do when you sign up for LearnVest Premium is to fill out your financial profile, which is called your “Smart Profile.”

Creating My “Smart Profile”

You’ll enter basic financial information for your planner such as your annual income, goals, and current budget if you have one. This is also when you would link all of your accounts — checking, savings, credit card, retirement, student loans, etc. — to your profile if you haven’t already done so. In addition to prepping your information for your planner, filling out the financial profile helps put your current finances in perspective in relation to your financial goals. This part was intuitive and took less than 15 minutes for me complete.

After that, I was eager to schedule my call with my planner, which I was prompted to do after filling out the Smart Profile.

The First Call: Strategy Session

The goal of the first call is to lay the foundation for what will become your complete financial action plan with your planner. But you won’t receive the actual plan until your second call. During the first call the planner gets an idea of your financial situation. Your final plan takes all of the details that you discuss with your planner in this first conversation and shows the smaller steps you’ll need to follow to reach your financial goals. For me, those were things like paying off my student loans and saving up for retirement, but for others it could be things like saving up to buy a new home or for your kid’s college education.

The First Call: Strategy Session

During the call, you’ll speak with your planner over the phone, while you both look at the plan-to-be in your LearnVest dashboard. The first thing my planner did was verify all of the information that I entered into my Smart Profile. He then asked if there were any other accounts or information that I needed to add or clarify. Your planner may also ask about your current insurance policies and important financial documents such as a regular or living will or power of attorney.

At the end of the call, you should have a general idea of the plan-to-be, and your planner may assign some follow-up homework for you to complete before your next call (ideally, about a week later) such as sending additional information that will help them create your action plan. Your planner may also assign you a challenge — which you can see when you log in to your dashboard. The challenge may be to practice a budget for the week or to create a bank account.

My experience:

My first call was enjoyable, and we spoke for about an hour. My planner was patient as I clarified and adjusted information I entered into my Smart Profile.

After we sorted out my personal accounts and debts, my planner asked about my short- and long-term financial goals such as saving for an emergency fund or for travel. I’d given some thought to retirement before. I actually already started contributing to a 401(k) through my employer. I think of travel as more of a luxury, and definitely not a necessity. If I had extra money and the ability to travel, then I would, but everything else comes first. This would be the first time I’d specifically set aside funds to travel in the future. Keeping my savings goals in mind helped to inform the budget he would create for me. The planner made sure to factor in the monthly $19 for LearnVest’s ongoing support into my overall expenses.

Then he calculated a tentative weekly spending budget based on my outlined plan. The weekly spending number was the amount I could spend each week and still accomplish all of my monthly goals. It’s determined by splitting up what was left of my flexible spending over the number of weeks left in the month.

One aspect I appreciated was that my planner gave me three different budgets with varying levels of spending flexibility. I chose the budget that gave me the tightest weekly spending allowance, meaning more of my money was going toward my goals each month.

budget strategy

He also gave me a few financial tips during the first call. I’ve listed a few below, although there were many more.

  • Freezing (in a bag of water, in my freezer) or hiding my credit card to trick myself into not using it to help with paying down the balance.
  • Opening high-yield checking and savings accounts with an online bank. My planner recommended Ally Bank, where I could earn 1% on my savings, versus the 0.01% I earned at Wells Fargo. Luckily, I was already in the middle of switching to Ally from Wells Fargo. His encouragement gave me the extra boost I needed to get it done.
  • Setting up two checking accounts — one as a regular checking account but without a physical debit card linked to it, the other a “spending” account that was linked to my debit card. Then I was to set up an automatic weekly transfer of my weekly budget into the spending account to use. This way, it would be impossible to go over my budget without deliberately transferring funds over to my spending account.
  • Think about insurance options. He also explained to me the importance of having different types of insurance plans that many don’t get through an employer such as renters insurance or life and disability insurance. The explanation was helpful, and easy enough to understand. But I have to admit, I didn’t follow the advice. I hadn’t yet considered paying for what I see as “extras” like renters insurance or life and disability insurance. I rent, but I don’t own anything of substantial value so, for me, renters insurance is a waste. I figure I’ll just get it when I have something more valuable than my rice cooker to protect. One of my parents pays for a small life insurance policy that I’ve had since high school, and I’m young so here’s hoping I don’t suddenly become disabled while I look into it. I’ll likely start paying for disability insurance in February 2017.

After we covered those details, we scheduled a follow-up call, which would take place about a month later.

The Homework

After our talk, my planner sent me a follow-up email with my homework for the week. I had two assignments: to open new checking and savings accounts and to double-check my existing insurance policies and coverage amounts.

He also assigned me a “challenge,” which are little tasks your adviser sets up for you on the LearnVest website. You can see your challenges when you are logged in to your LearnVest dashboard, and you’ll get email reminders when the deadline for the challenges are close. You can check off your challenges as you complete them, or mark them as missed. Be honest; your adviser will ask you about them in the follow-up call.

action program

My first challenge was to practice the weekly spending budget he created for me during the initial call. The added challenge was to use cash only (so that I could physically see what I would be spending). Having the challenge helped me to keep my budget in mind; however, I didn’t complete it. My 22nd birthday was that week, and I take my birthday celebrations pretty seriously.

Since my weekly budget was determined by splitting up what was left of my flexible spending over the remaining weeks of the month, I just subtracted what I used up on my birthday celebrations and determined a new weekly budget for the rest of the month.

The Second Call: Getting My Action Plan

This is the call that solidifies your financial action plan. During the second call, your planner will explain to you all of the ins and outs of following the plan they have created for you to follow based on information from the first call.

The second call will be about a week or two later, depending on your scheduling availability and that of your planner. I scheduled my follow-up call at the end of our previous conversation for two weeks later, but I had to reschedule via email because I had other obligations come up. Rescheduling was painless and completed in less than 24 hours. My planner responded to my initial email with the times he would have available coming up, I emailed back with the time that worked for me best, and I was booked.

My experience:

Because I had to reschedule our initial follow-up call, our second call was about a month later. By then, I was used to my new weekly budget and felt good and ready to begin my new action plan. Before we got to my actual action plan, my planner checked in with me to see how I did with my suggested weekly budget.

He even gave me the option to switch to one of the other versions he created with a little more flexible spending, but a longer road to my savings goals. I struggled a bit with my birthday spending and a few emergencies, but I knew those were outliers and I could easily stick to the weekly allotment in a regular week.

I chose to stick with my budget. He also asked me if anything about my financial situation had changed since we’d last spoken. One thing did change: I planned to move into a cheaper apartment the following month. My planner made a note to adjust my action plan accordingly and said the final plan would include the update. Afterward, he talked me through how to implement the action plan he created for me.

Toward the end of our conversation, he explained important financial documents I should have at any age such as a living will and where I could look for resources to complete them in my dashboard. In the dashboard, under the “Program” tab is a section called “Planner Picks” that has the company’s approved recommended resources.

Action Plan and a $2.5 Million Surprise

My planner delivered my action plan to me via my LearnVest dashboard. It was a PDF file of about 20 pages that I could download to my computer if I wanted. It was super simple to understand and split into three parts:

  1. A recap of my current financial situation
  2. My financial goals
  3. The action steps that would help me to reach my goals over time

The Recap

The recap restated my weekly spending number (that’s the amount I was allowed to spend each week) and still accomplish all of my monthly goals.

The Goals Summary

The goals part broke down each of my stated savings and debt goals and showed how I would go about reaching them over five years.

The Goals Summary

The goals changed over time to reflect when smaller goals like my emergency fund and credit card payoff would be complete. Of course, this part also included my retirement needs.

I was shocked at his calculation: I would need to save more than $2.5 million to maintain my current income in retirement. To get there, I would need to continue contributing 10% towards my 401(k) and bump that contribution up by 2% every year or any time I get a raise. The idea here is that I would save more as I earned more over time. Sounds doable enough. Finally, it listed what estate documents I needed, such as a living will and beneficiary forms. To be honest, I haven’t completed my living will yet. You can upload these documents to your dashboard once they are completed.

The Action Steps

The final part outlined the action steps that I would take monthly to reach my goals. It briefly reviewed my monthly budget and showed how I should set up my accounts so that each month of successful budgeting would contribute to my overall goals.

I had a few more challenges assigned to me, such as learning to categorize my purchases and create goals in the dashboard. My planner sent a follow-up email after both calls recapping what we discussed. Moving forward, I would have ongoing support from him via email and had a copy of my plan available to me in my LearnVest dashboard.

For now, I’m following the plan as best as I can. The first month was rough with moving expenses and holiday expenses, but I’m confident I’ll be able to beat my weekly spending target and pay down my debts even faster when life settles down a bit.

What Is Meant by “Ongoing Support”?

Ongoing support from LearnVest means that you can reach out to your planner for help or advice via email, anytime. Your planner will also continue setting up challenges for you in your dashboard and may, on occasion or when you email them, ask you about your progress.

I follow up with the challenges when they are assigned to me, but I’ve only had to contact my planner once via email to clarify my insurance needs. Other than those little questions, I don’t have much of a reason to contact the planner since my entire plan is on my dashboard, and I have a feeling I’ll be following the same plan for a while.

Pros and Cons

Pro: Quick Responses

Having email access to your planner actually works out pretty well. I was impressed when I emailed my planner late in the day with a question and he got back to me via email in less than 24 hours.

Pro: Online and Mobile

LearnVest is accessible to you on the computer and in an app for your mobile device. Having both platforms makes it easy and convenient to check your progress toward your goals or edit your budget whenever or wherever.

Pro: Challenges

Each time your planner sets up a new challenge for you, you’ll get an email. They will be challenges such as watching an educational video, practicing a shopping fast for a month, or automating contributions to one of your savings accounts. The challenges help in a couple of ways. They are a reminder to log in to your dashboard if you aren’t prone to doing so on your own. The challenges also serve as a way for your planner to contact you and keep you motivated with creative short-term financial goals.

Con: No Face Time

Both meetings with your financial planner will take place over the phone. You can’t video chat or otherwise see the person to whom you are giving your financial information face to face, which may make some feel cautious or uncomfortable. Your planner may do as mine did and exchange some polite banter or offer to answer any questions you may have about LearnVest or the process to help you feel more comfortable.

Con: No Credit Score Information

You’ll need to download a separate app it you want to monitor your credit score. Unlike other popular budgeting apps, such as Mint, you won’t be able to see any information related to credit score or credit report information with LearnVest.

Con: Can’t Split Transactions on Mobile

The LearnVest mobile app’s budgeting software doesn’t allow you split up one transaction into multiple categories. So if you spent money on both clothes and food in one location, you’ll have to log in at a desktop computer to split the transaction.

Con: No Investment Management

Unlike the robo-advisers out there and some other financial planning platforms, LearnVest doesn’t manage your investments. You can check out this article for a few robo-advisers if investment management interests you.

Other Financial Planning Platforms to Consider

There are a host of other robo-advisers and online financial planning tools that target millennials cropping up to choose from that you may prefer over LearnVest.

Stash Wealth

A newer online financial planning platform, Stash Wealth, operates very similarly to LearnVest, but is aimed at what it calls H.E.N.R.Ys (High Earners Not Rich Yet). It costs $997 to get started, then $50/month to continue the service. Stash Wealth does do more of the work for you — like setting up automation for your savings and checking your tax information — so you don’t pay any taxes that you don’t have to pay. Once you’re ready, they start investing your money for you in accordance with your goals.

XY Planning Network

The XY Planning Network is a network of fee-only financial advisers who focus specifically on Gen X and Gen Y clients. There are no minimums required to get started as a client, and advisers in the XY Planning Network are not permitted to accept commissions, referral fees, or kickbacks. In other words, no high-pressure sales pitches or hidden agendas. Just practical financial advice doled out at a flat monthly rate. The organization is location independent, offering virtual services that enable any client to connect with any adviser regardless of where they reside.

Garrett Planning Network

A national network featuring hundreds of financial planners, the Garrett Planning Network checks many key boxes for millennials. All members of the Garrett Planning Network charge for their services by the hour on a fee-only basis. They do not accept commissions, and clients pay only for the time spent working with their adviser. Just as important for millennials, advisers in the Garrett Planning Network require no income or investment account minimums for their hourly services.

Mvelopes

Mvelopes is an app that provides a spinoff of the cash envelope budgeting system popularized by Dave Ramsey. Like LearnVest, its basic version is free and allows you to link up to four bank accounts or credit cards. Mvelopes has a second tier called Mvelopes Premier. It costs $95 a year, and you can link an unlimited number of bank accounts and credit cards, among other features. Mvelopes’ top tier, Money4Life Coaching, adds one-on-one coaching tailored to your financial needs as LearnVest Premier does. However, there is no price for this tier specified on the website.

The Final Verdict

LearnVest Premium is a convenient and cheap alternative to an in-person financial adviser if you need a little additional help planning your finances or a convenient reminder to stick to your budget, but it’s not worth the $299 + $19 a month if you just want to keep an eye on your spending. For the latter, stick to the apps that do it better, like Mint and YNAB.

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Investing, Life Events

Great Financial Planning Networks for Millennials

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The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

friends millennials young people

It’s often said that if customers speak, the market will listen. Well, when it comes to financial planning, millennials have spoken, and they’ve made it clear the planning and advisement services of generations past will not suffice.

And true to form, the market has responded. After years of shunning or altogether shutting out clients in their 20s and 30s, or at best, attempting to force-feed them the same services as their parents, the finance industry is in the midst of an about-face, as a host of new and innovative financial planning networks designed specifically for the younger generation are making waves in the marketplace.

It’s that last point that matters most. Millennials don’t want just any financial planning services. They want services designed specifically for them. So, what exactly does financial planning designed specifically for millennials look like? In keeping with the millennial spirit, there are no official guidelines, but when you build a shortlist of the best financial planning networks for millennials (we’ll do just that momentarily), you notice they generally revolve around a few core principles. For the most part, they’re all:

  • Millennials seem impervious to sales pitches and are highly cognizant of hidden costs. They want to know exactly how much they’re paying and what they’re getting in return. This means fee-based financial services are a must.
  • Inclusive and flexible. The best planning networks for millennials welcome clients regardless of how much they have to invest or where they’re investing it from. In other words, no required minimum deposits, and no geographic restrictions.
  • Education oriented. Millennials aren’t interested in being told what to do. They want financial advisers to be more like coaches — or better still, partners.
  • Digital and social. Suit-and-tie meetings behind the closed doors of a stuffy office are not for millennials. Millennials want to socialize, interact, and share ideas where they feel most comfortable — online and on their smartphones.

In some form or another, the best financial planning networks for millennials connect in ways traditional approaches never could.

Here are two standouts:

XY Planning Network

The XY Planning Network is a network of fee-only financial advisers who focus specifically on Gen X and Gen Y clients. There are no minimums required to get started as a client, and advisers in the XY Planning Network are not permitted to accept commissions, referral fees, or kickbacks. In other words, no high-pressure sales pitches or hidden agendas. Just practical financial advice doled out at a flat monthly rate. The organization is location independent offering virtual services that enable any client to connect with any adviser regardless of where they reside.

Garrett Planning Network

A national network featuring hundreds of financial planners, the Garrett Planning Network checks many key boxes for millennials. All members of the Garrett Planning Network charge for their services by the hour on a fee-only basis. They do not accept commissions, and clients pay only for the time spent working with their adviser. Just as important for millennials, advisers in the Garrett Planning Network require no income or investment account minimums for their hourly services.

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Life Events

How to Choose a Financial Planner

Advertiser Disclosure

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Geeting advice on future investments

Your financial situation grows more complex as you take on more responsibilities, create new goals, and hit big life milestones. No matter what you want your life to look like, it takes planning to turn your ideas and hopes into reality.

This is where a financial planner can come in and help make it happen. Financial planners and advisors provide outside, objective, and expert perspectives and advice. The best will keep you on track to meet your goals, whatever they may be, and can stand between you and making big mistakes with your money.

Your financial planner can serve as your guide through complicated decisions, helping you make rational ones instead of taking emotionally charged action. And her or she can serve as accountability partners to ensure you’re taking the steps you need to grow your wealth.

If you’re looking for a professional, you probably already know this – but the confusing part is how to choose a financial planner who’s going to best serve you and work with your interest in mind and not a commission fee.

The Challenges Consumers Face in Choosing an Advisor

The confusion starts with the fact that the terms “financial planner” and “financial advisor” aren’t regulated. Planner and advisor are interchangeable, and “advisor” sometimes appears as “adviser.” Anyone can call themselves a planner or advisor or “money coach” or a variety of other terms. This isn’t necessarily a bad thing, but it does make it more difficult to understand what a professional does when you first meet them.

For example, big banks and insurance companies employ many advisors that call themselves financial planners, but do very little comprehensive planning and instead focus on selling the bank or insurance company’s products. They function as salespeople but use the title of planner.

This looks very different than an advisor who provides comprehensive financial planning that includes a plan to repay your student loan debt, set up the right savings accounts for you, and map out what you need to do in order to reach your goal of quitting your job in the next three years to launch your own business instead. And yet both these people may go by the same title.

Understanding How Financial Planners Are Paid

There’s a lot of confusion around the job title for planners and advisors, which causes some issues. But an even bigger problem? Most people don’t understand the differences in how advisors receive compensation for their work.

There are three main ways an advisor is paid:

Commission-based: These advisors only receive payments through commissions on products they sell. These products could include life insurance, mutual funds, or annuities. This presents a huge conflict of interest. They’re incentivized to sell products whether or not those products make sense for you.

Fee-based: Fee-based advisors can earn commissions off product sales, but they also offer services for flat fees paid by their clients. While this eliminates some conflicts, fee-based service models still leave the door open for an advisor to make a recommendation that isn’t necessarily the best for their clients.

Fee-only: Fee-only financial advisors are not the same as fee-based. Fee-only advisors are paid a set fee by their clients for the services they provide. They do not earn commissions off product sales. For this reason, there are inherently no conflicts of interest between you and your advisor if they’re fee-only. Fee-only planners are only getting paid by you to provide the best advice.

Two Different Sets of Standards

To recap, “financial advisor” or “financial planner” can mean a lot of different things and the title applies to people who do very different work. It’s critical that you understand what type of advisor you’re considering and how they’re paid. Fee-only advisors are only paid for the services they offer, and that payment comes directly from the client. For that reason, fee-only advisors can operate with the least amount of conflict of interest.

In fact, they’re even held to a higher standard than other advisors: they need to uphold the fiduciary standard. The fiduciary standard requires professionals act in the best interest of their clients at all times. That includes putting their clients’ interests ahead of their own or their business.

Believe it or not, acting as a fiduciary is not the rule in the financial planning industry. There’s another standard that most fee-based and commission-based advisors fall under. It’s called the suitability standard, and it requires only that an advisor make a recommendation that is suitable for their clients. It doesn’t have to be the best option.

If you’re looking for a financial advisor, choose one who operates under the fiduciary standard. You can ask them to sign a fiduciary oath before working with you, and if they refuse, keep looking. There are too many qualified professionals out there who can work with you and put your interests ahead of everything else (including their own).

How to Choose a Financial Planner

There’s a lot to think about when you choose a financial planner. When starting your search, look for someone who is:

  • a fee-only financial advisor
  • willing to work as your fiduciary – and will sign (or has signed) a fiduciary oath

Additionally, you want to make sure the professional you find is qualified and experienced, and understands your needs and goals. Here’s what to ask when you talk to a financial planner:

What kind of designations do you have? Look for marks like CFP, CPA, and so on; or ask if they’re working toward these designations. The CFP, for example, requires considerable education, training, testing and three years of work experience to obtain. Plenty of good planners can add value to your financial life, but may still be in the process of earning their CFP.

What services do you offer? Planners can offer a variety of different services. You want to ask to determine if what they offer fits your needs. You may want comprehensive planning, investment management, or both. Some planners also offer “quick start” sessions, which is a one-time engagement that costs much less than ongoing service.

What kind of clients do you work with? You want to ensure your planner is familiar with the needs – and wants – of someone like you. If you’re interested in reaching financial independence so you can travel the world, working with an advisor who specializes in retirement planning and Social Security analysis doesn’t make much sense for you.

Where to Find Your Ideal Financial Advisor

Not sure where to start looking? Search these organizations for a financial planner to connect with. They’re all groups of fee-only financial advisors who uphold the fiduciary standard.

XY Planning Network: XYPN is the leading organization of fee-only financial advisors who specialize in serving Gen X and Gen Y clients. All of their members can work virtually, which means you can choose the best advisor for you regardless of physical location.

Garrett Planning Network: GPN is another organization of fee-only planners who serve clients from all walks of life. Their advisors offer planning services on an hourly basis.

National Association of Professional Financial Advisors: NAPFA is the largest organization of professional advisors who meet the highest set standards in the financial planning industry.

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