Build your financial support team

Financial support is just as important as professional and personal support. But knowing who to call and when to call them can sometimes feel like a research project. So we’ve put together a list of potential players to consider for your financial support team. We define what they do, when to consider calling them, and how establishing a relationship with them can potentially benefit you now—and in the long run. And while this is not a full list, establishing these relationships can help make sure you feel organized and prepared for whatever comes next.

• Financial professional

  A financial professional can help you holistically understand your current finances and see the “big picture.” They can work with you to outline money goals, both short and long term, and create a financial plan to help you reach them. You can call them whenever you have questions about your finances, want to revisit your financial plan after a life event (i.e., changing jobs, buying a house, or having a child), or simply want reassurance you’re making financial decisions that align with your goals. They can also help you understand your account and investment management options and help you decide what type of help may be right for you. Establishing a relationship with a financial professional can help you feel overall more confident in your finances. Working with a financial professional can offer value to people in many different situations.

  Read our Women’s guide to finding and working with a financial professional.

• Investment manager

  An investment manager is someone who handles investment decisions on your behalf behind the scenes once you open and fund a managed account. This type of relationship can vary based on your asset level but often includes a 1-on-1 dedicated advisor, a team of advisors, a robo (digital) advisor, or a hybrid combination. There are also generally fees associated with investment management, but the fees will vary depending on the account and services you choose. Once a managed account is opened, the investment manager will develop a personalized investment strategy based on the information provided when opening the account. A person in this role typically stays behind the scenes and never actually engages with you directly. Before considering this type of relationship, it may be helpful to ask yourself these 3 questions:

  1. Do I know how to invest and manage my investments?
  2. Do I want to manage my own investments?
  3. Do I have time to manage my own investments?

  There’s no right or wrong answer or one-size-fits-all approach to investing, so finding a combination of the financial support that works for you and your unique situation is important.

  Working with an investment manager means your assets are managed using their professional experience and market insights. They can provide ongoing maintenance of your account by monitoring the markets and business cycles and making any adjustments if needed on your behalf without you needing to intervene. Depending on your circumstances and goals, they can also implement tax-smart strategies designed to help reduce the impact of taxes and help enhance after-tax returns.

  Read more on What are managed accounts?

• Tax professional

• A tax professional can help you be aware of and potentially avoid costly tax implications and understand how any big life choices may impact your taxes—for example, buying a house or another large purchase, having a child, cashing out investments, or even retiring. Did you know retiring can have a considerable amount of tax implications since you’ll be withdrawing from investment accounts you’ve potentially had for 30+ years?

  These individuals are knowledgeable in tax laws and regulations and can offer guidance on preparing and filing tax returns and ensuring tax compliance as it applies to your unique financial situation. In the realm of tax advising, a Certified Public Accountant (CPA) is a widely recognized certification. When deciding when to bring in a tax professional, look at your personal situation and consider whether you’re comfortable with the risks and the potential consequences of doing your own taxes. If you’re hesitant or have any questions about taxes, consider recruiting a tax professional for your financial support team.

• Estate planning attorney

• An estate planning attorney can help guide you through the estate planning process and create essential documents (i.e., durable power of attorney, living will and health care proxy, last will and testament, trust, etc.) needed for your situation. An estate plan can play a helpful role for people across different life stages and financial situations. While it can have many pieces and look different for everyone, an estate plan can help ensure your wishes are followed and any dependents are taken care of. Depending on what your plan consists of, your attorney can also help you create the documents needed to establish the following potential players:

  • Executor (aka personal representative) of your estate—This is who you designate to manage the implementation of your estate plan. The executor can file court papers, pay taxes on your behalf, fulfill any other financial obligations you may have, and make sure your assets are distributed as you intended.
  • Trustee—If you create a trust document, the trustee is responsible for carrying out the instructions in the trust. They are responsible for managing the assets within the trust, making distributions to trust beneficiaries, and completing any necessary tax filings.
  • Agents under durable power of attorney (POA) and health care proxy (HCP)¹—Agents under your durable power of attorney and health care proxy are responsible for managing your financial affairs and your medical decisions respectively while you are alive if you can no longer do so. Married couples often name each other for these positions, but you may want to choose backup agents as well in case the person you have named as primary agent is not able to fulfill their responsibilities for any reason.
  • Guardian and conservator—If you have a minor child or an adult child with special needs, naming a guardian and conservator for them means the persons named would assume legal responsibility for your child’s care and finances, respectively, if you and your child’s other parent both became incapacitated or passed away.
  • Beneficiaries—A beneficiary is a person or entity you name in a beneficiary designation form to receive certain assets, such as your retirement accounts, investment accounts, or life insurance policies, if you pass away. You can name multiple beneficiaries and adjust percentages of what each person receives and can also name contingent beneficiaries in case primary beneficiaries pass on before you. Designating beneficiaries on your actual accounts (vs. just in your will) can help avoid confusion, speed up asset distribution, and potentially save money on probate court fees.

  Did you know if you have different beneficiaries named on your account(s) than in your will, the specific beneficiary designations on your account(s) bypass probate and override the will? So make sure to check in consistently and ensure everything is up to date and accurate. Already a Fidelity customer? Check to make sure your beneficiaries are designated.

  Read more on What is an estate plan and why do you need one?

• Insurance specialist

• While talking about insurance may not be a fan-favorite topic, proper coverage is an important part of protecting your future. While some workplace plans offer insurance coverage, this may not be enough, depending on your financial situation. An insurance specialist can help you evaluate your needs and help you choose insurance plans that work for you. Types of insurance you may want to consider include disability, long-term care, umbrella liability, and life insurance just to name a few. You can find an insurance specialist by browsing online directories like TrustedChoice or HealthCare.gov. Consider focusing on independent agents who represent multiple insurance carriers to get the best options tailored for you, your situation, and your state.

  Read more on Protecting yourself in uncertain times.

• Planning partner or spouse (if applicable)

• You and your partner share a life together—but do you share finances? There’s no right or wrong answer, and while some couples share everything together, others keep finances totally separate. Either way, it’s important to align your goals—both short and long term—and ensure both you and your partner have access to important documents, account information, and anything else you may need if something happened to one of you. Having someone to talk with or share insights and ideas with can help hold you accountable and potentially help you create more sustainable money habits in the long run as well.

  Read more on Planning for the future with your partner.

• Mentor

• Just like in your personal or professional life, mentorship can be an important part of overall financial wellness. Knowledge is power, so asking questions and finding support where you need it can help give you reassurance and validation, whether that’s growing your financial literacy and building strong money habits, or growing your career and negotiating for yourself and new opportunities. Maybe it’s a family member or trusted friend or maybe an old coworker or teacher. Whoever it is, consider finding someone who also challenges you and may see things from a different perspective. Take it from Jen Bennett, Head of Human Resources at Fidelity:

  “I always try to look for mentors that are really different than me. They have different communication styles. They have different approaches to leadership. Because having someone that challenges you and thinks differently than you can help you grow both personally and professionally.”

The bottom line

Just like you see different medical professionals for different health issues and different tradespeople for different home repairs, there are many players that can potentially make up your financial support team. Consider starting out with a financial professional to talk through your overall situation and answer any questions you have. If you don’t have any specific questions and are just unsure where to start or who to call, that’s OK! A financial professional can help you decide the potential “who and what” to call and do next. The most important thing is to start building your team and establishing any important documents you may need to ensure you’re focusing on future protection and readiness.