financial planner recommendation needed; NOT mainly investment-focused
 

ADDED NOTE BASED ON RESPONSES: the person in question is specifically amenable to sitting down and talking to a professional financial planner, whether in person or virtually. Using a banker will not suit this situation. If you can post a specific recommendation with a link, thank you.

THE ORIGINAL MESSAGE:

The request is for a recommendation for a financial planner who provides really basic advice on budgeting, saving and the fundamental approaches one must take as an adult today to logically use and preserve one's income. As they are unlikely to be exactly where the intended client is, someone with a virtual capability would be ideal.

Sure, most such financial advisors will provide basic advice to varying degrees. However, in my experience, most are mainly focused on moving the conversation to investment products. While investment advice will also be OK here, the main need here is more basic.

The reason is that I have a family member who is a train wreck with respect to basic household financial management. She frankly needs to hear some fundamental advice from a paid pro as she is not the kind of person who takes personal advice well.

Thanks!

How do you plan to make this family member sit down and listen to an advisor ? It's like making an alcoholic go to AA . If the person doesn't admit they have a problem it will be very difficult for them to be receptive to outside help . I think it's great that you see a problem and care enough to help . Unfortunately she may have to hit rock bottom financially to realize changes are needed .

I think your family member needs a remedial type of “program “ that addresses this.

I have never listened to, and, from what I have heard disagree with much of the advice offered by Dave Ramsey. But, he has a program that many people enjoy. There will be similar programs that may be better, DR is only an example, I do not endorse his stuff.

I have a child who is a financial train wreck. My personal to do list includes amending my will to protect from this.

Good luck!

Care to share general thoughts on your plans for this? My mom is dealing with same re: my meth head step brother

Horse ---> H2O ---> Not thirsty!

Striped leopards ....

But GLWT journey.

Either keep them outta the "windfall" via a trust, etc. or stand aside and watch it ....

Poof... gone :(

My parents (not wealthy) have bypassed my older sister and will leave her share/control to her very responsible and successful daughter ... sis knows it ... and why.

If the person is willing to listen, many banks offer basic financial advice. I've listened to DR a bit and my little brother uses his program, or used to at least.

We had a local person get some press a while back. She developed a budget and financial management program after her own financial troubles. https://www.thebudgetmom.com/

My Mom manages a trust for her younger brother, due to issues he has that started with his service in Vietnam. Personally I wouldn't put a sibling (or other family member) in charge of another someone's trust share. Hire a professional and keep family out of the line of fire.

My thought exactly. You can offer advice, but until the person(s) is willing to go forward and commit, your journey will be difficult.

There must be a 1000 books on the subject not to mention the Net. You said she doesn't take advice well so an advisor is a waste of money.

As said, the person needs to bite into this or it's just information. Handing finances over to a bookkeeper would be better. With oversight, of course.

There is only one thing she needs to know: what goes out has to be less than what is coming in. It's really that simple. But getting there is not.

Without details no one is going to recommend anything. A better picture will produce better results. Most people that don't manage money will have debt, but you don't say anything about that. Addressing debt is no. 1. Number 2 is spending money frivolously. That's just a bad habit and habits are hard to break.

No. 2 will take care of no. 1

Money Guys podcast has great basic advice if she is open to listening


Not a huge fan of dave Ramseys advice, though I like his character, but he is geared towards people who are bad with finances.

Hello?

Sounds like she needs something like AA for money abuse. I don't know if there is such a thing.


I'm not sure I would be a good sponsor.

"Patrick Help! I feel like I want to go out and buy something."
"Now, you know that's not what you need for your life. What do you think you need to buy?"
"Some new bras and panties. Maybe a new bikini."
"Um, you need a ride?"

Right, she may be the perfect candidate for his program. Twas my point.

Normally he is so debt and risk adverse, and had no flexibility in his recommendations that more informed people will sacrifice potential returns

I'll do it for free.

Send her to me.

Seriously, I have done this many, many times and helped a lot of people not crater financially; Others, not so much when they spit the bit.

If I can't make it work, her problem. Worth a shot since I will have zero skin in the game other than what is true in the real world of personal finance.

Your call.

This would be my suggestion as well - they're pretty good.

I personally believe that everyone should save 25% of whatever they make. Of course that is not easy to do if you've not been saving anything but you can work up to it over time.

Next, I would follow Buffet's advice and that is, if you don't know what you are doing, then invest your money in an index fund like Vanguard S&P500 VOO. And, to get this person interested, maybe start small and invest $100 and then commit to an amount per paycheck (say $25 or more depending on income). I would recommend doing this via direct deposit. And lastly, get them involved with their company 401k if they have one.

As now added to the original post: the person in question is specifically amenable to sitting down and talking to a professional financial planner, whether in person or virtually. Using a banker will not suit this situation. If you can post a specific recommendation with a link, thank you.

Then I suggest you identify their location.

Not exactly sure how it works.
I think the designated Trustee with Power of Attorney (am I using correct terminology?) oversight who can oversee monthly distributions by a bank trustee to landlord and account or whatever the intent is. Beware, the bank fees will increase quite significantly they more details and bs they have to deal with so a flat fee should be negotiated with terms. Brother doesn't get direct unlimited access to the whole kitty. To him the people in charge are faceless names on paper.

Set conditions for disbursement such as monthly drug testing by a verified clinic or hospital or whatnot.
After a certain amount of years of drug free success he takes over everything.
Something to work towards.

The Trustee/s should also have power to change financial advisors if they are failing to maintain the principle in profitable platforms.

There should also be a backup Trustee named on file with attorney. Family or someone with no vested involvement.

Someone asked how I plan to address my kid who is a "financial train wreck."

Well, your timing is excellent! I have been thinking on this even today. My thought is to have a person to administer funds as needed, with many strings and controls.

More about my plans:

Kid 1 - ASD and Train Wreck
Kid 2 - Frugal and responsible
Kid 3 - Frugal and responsible

Plan is to give 33.3% to each. But, Kid 1 gets funds sent to a Special Needs Trust. The Trust is to be administered by a cousin who has a very clear head on her shoulders. She will receive small compensation for this. Upon death of Kid 1, funds split evenly to #2 &#3. (not sure this is legal! I need to check.)

I currently have a will in place that does most of this. But, I need to write my directions and limitations to the Trust Administrator. If not? Kid 1 will run through funds in a manner that will cause my rotting corpse to rise in protest.

^^^^ After talking with an atty about "Trust"(s), etc. and wanting to KISS, and all the instructions, contingencies, and family dynamics (i.e. looking out for each other), ages, etc. I went (as did my parents) in a different direction .... moving away from a trust they setup decades ago. It gets complicated when your "primary" administrator croaks, etc. and I don't want to burden others, nor have non-family deal with stuff ..... that's family. The amount of $$$/property(ies) differs for each situation too... ain't easy ;).

I (and my parents) will "give it all", no strings attached to an absolutely responsible, TRUSTed individual and told to "take care of your mother, grandparents, family" .... this will NOT work for some, but it's YOURS .... do the right thing.

Just for consideration.... maybe consider:

Kid 1 - 0% (or mebbe a very modest amount)
Kid 2 - 50%
Kid 3 - 50%

Kids 2 & 3 are instructed to "take care of Kid 1" as life changes, curve balls that you NEVER anticipated and "time" changes every thing .... and it will ;).

I know my family and you know yours.... what works for me .... might not :D

But I'm good with it... YMMV.

It all depends .... my crystal ball is really a cube ... and cloudy too... but it's family :).

Good luck!