Many of us are familiar with DNA. It is what identifies us as a human being down to our most basic core. In my book Your Future Reflection that just released in November, I go into depth about our Spiritual DNA versus our Family’s DNA. It became clear to me through scripture that our families, our past, our culture and our heritage as a whole all contain specific DNA patterns associated with our personal attributes and characteristics. All of this affects our mindset and how we determine what you and I do each and every day, including the area of our finances.  

Many companies and experts have attempted to label various money personalities over the years. TransAmerica Financial Services did a study that revealed four basic investing personalities, and while there is no definitive set of definitions, taking a look at these efforts can at least get you thinking about where you are on the spectrum and how that has affected your decision-making.

  • Venturers take a “nothing ventured, nothing gained” attitude with their money, but their potential pitfall is they’re overconfident in their level of preparedness.
     
  • Anchored individuals always “stay on the safe side,” but extreme risk aversion might leave them unprepared.
     
  • Pursuers will “try anything once” but their continual efforts to grab at new directions might leave them without a clear plan.
     
  • Adapters take investment situations “as they come” but may not be realizing their full potential as investors.

Now even if you have a handle on your money personality, what do you do with that information?

Proverbs 15:22 says, “Without consultation, plans are frustrated, but with many counselors they succeed.” This passage, along with many other scriptures instructs us to find wise counsel, which is especially true when dealing with our finances.

Some of the challenges people face who attempt to manage their finances on their own can leave people in a state of chaos financially, which will soon trickle into every other aspect of life. This is where someone like a Certified Financial Planner® (CFP®) can assist.

I believe a CFP® certification gives an advisor a well-rounded view of the financial landscape. Since it is their primary goal to have systems, concepts and processes in place to handle the ups and downs of our economy, it just makes sense to incorporate that knowledge into your own financial planning.

I believe a Financial Planner can assist you and your family in the following areas:

  • A CFP will have extensive education and expertise in the areas of tax, estate, budgeting, money management, insurance and risk management. Their resources come from a much broader pool in which they base their decisions.
  • They help provide vision and manage expectations as the economy and markets change course.
  • They help you manage your emotions. They base decisions on proven strategies and take a proactive approach instead of reacting to sometimes irrelevant news and statistics.

By researching and identifying Financial Advisors, you can choose one that is a perfect fit for you and your family. Some things to identify and define as you interview potential advisors could include:

  • Investment Styles
  • Risk Management Strategy
  • Integrity
  • Level of Expertise
  • Compensation – are they fee or commission based?

A financial planner can also help you develop an emergency fund, help you through a protracted leave of absence due to health or caregiving issues, and also make sure you have a disaster plan in place. No matter how your past has affected your current financial views, a planner can help you work through those issues while also taking your personality and lifestyle into account. Being a good steward is a great addition to the legacy you will leave behind.

Guy Hatcher – known as The Legacy Guy – has spent his lifetime helping families plan their legacy. A Certified Financial Planner, Guy has been a leader in the wealth management industry, which has allowed him to have over "10,000 Kitchen Table Conversations." This real-life experience merged with Guy's unique conversation style makes him financial advisor, family coach and family counselor. His new book, Your Future Reflection: How to Leave a Legacy Beyond Money, is now available at Amazon.com.  Follow him on twitter @guyhatcher. www.guyhatcher.com

Publication date: January 31, 2014