May-June2020 Issue

From FPA The Most Important People in Your Financial Life By Financial Planning Association® AS ONE OF THE WORLD’S wealthiest people and most influential voices in investing and finance, Warren Buffett acknowledges he wouldn’t have reached those heights without guidance from three individuals in particular: his father, Howard Buffett; his mentor, Benjamin Graham; and his late first wife, Susan Buffett. While the advice and guidance of others may never make you a billionaire like Buffett, it can benefit you in profound ways, says Financial Planning Association® (FPA) member Bruce Colin, a Certified Financial Planner™ (CFP®) professional with Bruce Colin & Co. Wealth Management in Rancho Palos Verdes, CA. “Everyone needs a somebody or two in their life who understands the idea of stewardship of financial resources, who sees things differently, who they can bounce ideas off, and who they can turn to for answers or guidance on matters related to money and finance.” They could be people from your personal life who offer informal guidance or professionals you pay for advice. Here’s a look at likely candidates to play that role: Parent(s)/Guardian(s)/Relative(s) “There is no one that has a bigger impact on your financial life and financial mindset than the people that raised you,” says FPA member Matthew Gaffey, CFP®, and senior wealth manager with Corbett Road Wealth Management in McLean, VA. “Your attitude around money—its worth, the importance of saving versus spending, etc.—is very much a learned behavior and why many people have such a hard time changing their spending habits. Your parents provide you with a model, intentionally or unintentionally, of what is ‘normal’ and ‘acceptable’ behavior when managing (or spending) their own money. It’s not much different from the other examples parents set for their children.” Getting financial guidance from parents/guardians is especially important for younger people as they seek to find their financial footing in life, says Colin. A parent, guardian or relative can help open a bank account, choose a first credit card, offer suggestions about managing debt and more. Your Spouse/Partner You and your spouse or partner should be on the same page with regard to goals, managing household finances, investing strategies and the like. If one spouse or partner takes on the lion’s share of household financial 6 REVERSE MORTGAGE / MAY-JUNE 2020