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My friend Christian Hudspeth is the kind of guy you don't easily forget.

Towering at six-foot-five with a slim frame and wide goatee up to his sideburns, he bears an uncanny resemblance to Hans Gruber (with a sense of humor to match).

But while his appearance might have fans of Die Hard doing a double take, it’s his personality that truly leaves an impression.

Christian always has a smile for everyone, and he treats people with a refreshing blend of laughter and heart. He’s whip-smart yet easy to talk to, often peppering conversations with millennial-nostalgic movie quotes from Jurassic Park to Mrs. Doubtfire.

He also genuinely cares about people and wants them to succeed — and maybe even have fun in the process. (I wouldn’t be surprised to hear him tell clients, “Help is on the way, dear!” during a financial rescue.)

In short, Christian is a great friend and a top-notch person.

Knowing that, it may surprise you that he spends his days as a Certified Financial Planner.

The True Role of Financial Advisors?

I’ll be honest, even today, when I think of financial planners and advisors, I picture buttoned-up actuaries sitting seriously in quiet offices, waiting to strip every ounce of joy from my life by forbidding any non-essential spending. The Scrooges of the modern world.

So the other week, when I was asking Christian to reveal some common myths people believe about financial planning, his answer didn’t surprise me.

“You know the biggest misconception I run into? And I mean, everyone gets this wrong. It’s that a planner is going to tell you to save every penny and that you can never spend money on anything fun. But in my opinion, a good financial planner will tell you the absolute minimum you need to save to meet your goals and encourage you to freely spend the rest.”

“In fact,” he added, “an advisor who can give you a well-thought-out financial plan can actually be very freeing!”

Of course, he’s absolutely correct. Financial advisors are not here to constrain us… they’re here to empower us. And yet, so few take advantage of the services they offer.

According to a 2022 study from Northwestern Mutual, 71% of American adults think their financial planning needs improvement, but only 29% actually work with a financial advisor. You don’t have to be a math whiz like Christian to realize there’s a massive disconnect here.

Seems like we could all use a refresher on how these professional financial advisors make it easier (and guilt-free) to enjoy our money.

Goal-Oriented Planning

Financial advisors begin by understanding your personal and financial goals. Are you saving for a down payment on a house, planning for retirement, or funding your children’s college education? Each of those goals requires a unique strategy that will depend on your unique circumstances. The advice you receive is a personalized roadmap designed to guide you toward your objectives without unnecessary sacrifices.

The key word in that last sentence? Unnecessary.

I would be lying if I told you there was no sacrifice involved. Maybe you have a short window to achieve a big goal, or you’re extremely risk averse and are willing to cut your budget in exchange for peace of mind. But the crucial thing here is that these are your goals and the sacrifices you’re willing to make… not unnecessary ones imposed by mean Mr. CFP.

Personalized Financial Strategies

There’s no such thing as a one-size-fits-all personal finance plan. And if there were, it wouldn’t be very personal!

That’s the beauty of working with a personal financial advisor; they work with you to analyze your income, your spending habits, and your financial priorities. They listen to your concerns, understand your dreams, and collaborate with you to create a plan that fits your life. The result is a custom plan that reflects your lifestyle and budget constraints and aligns with your long-term goals.

As part of your strategy, they may also give you tailored investment advice on where to allocate your money to achieve the best returns. This approach is not about locking your funds away but about growing your wealth to enhance your financial flexibility and security.

They can also help you manage risks through diversified investments and appropriate insurance. This ensures that unexpected events don’t derail your financial plans, providing an additional layer of security and peace of mind.

Peace of Mind and Empowerment

A solid financial plan can significantly reduce stress. When you know exactly what you need to do to achieve your financial goals, you can enjoy your present life more fully, free from the anxiety of financial uncertainty.

Financial planning is also empowering. It puts you in control of your financial destiny. Instead of reacting to financial pressures, you’re proactively managing your money, which boosts confidence and reduces fear. Win-win!

Minimum Requirements, Maximum Freedom

The result is exactly what Christian originally described. Once you know the minimum required to achieve your financial goals, you can confidently enjoy spending the rest. This is liberating because it allows you to spend your remaining money as you please, knowing that your future is secure. It’s about balance, not deprivation.

How to Find a Financial Advisor That’s Right for You

There are a number of things to look for when picking a financial advisor. These four questions can help you decide whether a potential advisor is a good fit for you and your goals.

1. Are you a fiduciary committed to putting my best interests first?

It's important to know if they are a fiduciary, which means they are legally required to always act in your financial best interest, even if they could generate a fee by selling you a commission-based product.

2. What services do you offer? Who are your typical clients?

Check if they provide what you need, whether it's retirement planning, investment advice, or tax help. It may also help to know whether they have experience working with people in your financial situation.

3. What's your financial planning strategy?

Dive into their methods and strategies to see if they align with your financial goals and comfort zone. It's important to feel comfortable sharing what you really think; otherwise, your advisor won't be able to craft a plan that truly works for you.

4. How do you earn your fees? Do you have minimum account requirements?

Understanding how they get paid and whether they have any potential account requirements can help you make sure their services align with your budget.