It’s early September and while everyone is in back-to-school mode, why not take some time to hit the books and learn about some aspects of financial planning that you know little about? Once we can read, we give less though to literacy, however the need to improve financial literacy is ongoing.
While you can rely on a Fee-Only financial planner to deal with you fairly and not pressure you to spend or invest in ways that aren’t beneficial to you, it still might be a good idea to learn more on your own. Because while your finance planner can tell you a lot, those conversations might be richer if you delved into financial matters more. And if even if you approach your financial planner with an idea that he or she advises against, you will feel better about what you ultimately decide to do if you have done your homework first.
For example, you know what the stock market is but do you really understand how it works? Or perhaps you are interested in the history of the stock market—why do we have one anyway?
You may have heard of the gold standard in school, but perhaps you don’t know why we had it in the first place (or why we abandoned it).
Over the years, you may have heard about different markets where the ‘bubble burst’ (dot-com market, housing market, etc.) but if you were not directly involved, you may not know just how this happened. Reading more about how and why speculation can go awry may help inform your own choices.
Now, if you have time to read a few books that is great. If not, some articles from reputable publications could offer the information you need to feel more informed. While it is fine to rely on the financial professionals you’ve engaged to help manage your money but there is nothing like knowing things for yourself.