Which Professionals Should Be on Your Financial Team?

Collaborating with the right financial team can help you create a comprehensive financial plan that balances your goals and objectives with your risk tolerance and overall financial situation.

Your financial well-being is filled with its own set of obligations, costs, and rewards. Yet, like so many others, you may feel overwhelmed with the management of your finances.

You may be looking at your retirement plan or investing in a second home. There are decisions to make about your estate. Have you saved enough to live the life you envision? It’s a lot to consider and not so easy to figure out where to begin.

The first step is to find professionals who understand you and offer trusted guidance. So where do you start, and who should be on your financial team?

What Is a Financial Team?

Imagine building a sports team. From coaches to players, every person on your team brings a unique skill set, coming together with one common goal–to win. Your financial team works in much the same way, with each player bringing specific skills and professional knowledge. They collaborate to help you tackle the financial challenges you face and help you reach your financial goals.

Each person on your financial team has a distinct role. Just like you wouldn’t expect a quarterback to also coach the team, you wouldn’t expect one professional to handle every aspect of your finances. Each member of your financial team understands your financial goals, tolerance for risk, and long-term vision, and together, they create a tailored strategy that works for you.

With a team of financial professionals working together to protect and grow your wealth, you benefit from the collaboration of their specialized knowledge. Your finances are covered from all angles to keep your personalized financial strategy on track and help you achieve your goals.

Building a financial team offers numerous advantages and can make your financial future more secure and manageable. You may already be working with one or two trusted professionals, such as an accountant or an attorney. But adding other specialists to your team–such as a financial advisor and an insurance agent–may enhance your overall financial strategy.

#1 Financial Advisor

As in sports, even the most talented players need a skilled coach who can bring out their best and guide the team toward a shared goal. Your financial team is no different. You need an experienced advisor to act as the coach—providing guidance, coordination, and leadership to help keep everyone aligned and working to support your objectives.

To build an effective financial team, start with a licensed financial advisor who is a CERTIFIED FINANCIAL PLANNER® professional. A CFP® professional is a financial advisor with one of the most rigorous certifications for financial planning knowledge. They must have several years of experience related to financial planning, pass the CFP® exam, and adhere to a strict ethical standard set by the Certified Financial Planner Board of Standards.

Unlike some other financial advisors, CFP® advisors are held to a fiduciary standard, meaning they are obligated to act in their client’s best interests. They do more than provide advice on investments. They are equipped with the knowledge and skills to assess your overall financial situation and make recommendations based on their findings. Some examples include determining the best way to manage cash flows, planning your taxes and insurance needs, reviewing your estate plan, and making sure your portfolio is invested properly.

When it comes to money, there is no such thing as one size fits all. Your goals are quite different from those of your co-workers or your neighbor. An advisor will work with you to understand your personal situation and figure out the best plan for you going forward.

You can benefit from someone who will inspire you to think about your priorities and ask tough questions, such as:

• What are your goals, financial and personal, in the near term and over the long term?
• What are your fears when it comes to money? What keeps you up at night?
• How much money do you spend annually, and how much will you need in retirement?
• What is your biggest regret concerning your finances?
• What does your ideal financial life look like going forward?

Just as a coach creates a plan to help a sports team win the game, a financial advisor can craft a roadmap to guide you from where you are today to where you want to be in retirement. They will lay out a timeline that supports the lifestyle you envision, assess your cash flow needs, and structure your finances accordingly. For some, this might involve investing strategically to grow a robust nest egg. For others, it could mean securing insurance to protect future earnings and ensure long-term stability.

You may want to set up a trust or family foundation. You could have questions about your mortgage or the financial security of your family members when you’re no longer there to provide financial support. These challenges call for a team of professionals who understand your goals and what it will take to achieve them.

A financial advisor is a great place to start when building a team of financial professionals. Because there are many elements to your financial health, you may need to bring in other specialists. Your advisor can help you assemble the right team, which may include an accountant, a lawyer, and an insurance agent. Or they can work hand-in-hand with existing members of your team.

You may not need the services of all the professionals listed here, but it’s good to understand the role each one plays so you can consider them for your future needs.

#2 Accountant

The next most common financial professional to add to your advisory team is a Certified Public Accountant (CPA). CPAs typically focus on accounting and tax planning, although their responsibilities can vary significantly depending on your financial situation.

Typically, CPAs prepare personal and company tax returns and any other type of tax filing that you are required to file. They can also advise on specific tax situations, such as the sale of a property or determining the best structure for your business.

Working with a CPA goes beyond just filing your taxes, however. CPAs can help you develop strategies to minimize tax liability and optimize your finances by taking advantage of deductions and credits throughout the year. From income deferment options to helping with estimated tax payments, their professional experience enables you to navigate complex tax laws, potentially saving you significant amounts of money in the long term.

Although CPAs offer financial advice, their role is different from that of a financial advisor. Whereas CPAs offer specific guidance on tax matters, financial advisors take a broader approach. Your financial advisor is knowledgeable in taxes and can examine them as part of a complete financial picture but doesn’t typically prepare returns. Instead, a financial advisor focuses on creating a comprehensive financial plan that encompasses investment strategies, retirement planning, and risk management.

When your financial advisor works hand-in-hand with your accountant, they can help organize your documents at tax-filing time and identify tax-saving strategies that align with your long-term financial goals. Throughout the year, your financial advisor can provide your CPA with updates on income and deductions so they can run projections and modify tax payments if needed. Together, your financial advisor and CPA offer advice and monitor your overall situation to make sure you’re staying on track.

#3 Attorney

Many people are surprised to hear that they need an attorney on their financial team. However, this role can be critical depending on your circumstances. For example, an attorney is essential during major life events such as divorce, marriage, or the death of a spouse. Their knowledge can guide you through complex legal situations and help to ensure that your financial interests are protected.

Here are a few of the vital roles an attorney can play on your financial team:

• Estate planning
• Buying or selling property
• Selling or restructuring a business
• Creating a long-term care plan for a disabled relative
• Setting up a company for liability and tax benefits

Once you begin to put your long-term financial plan in place, you may need to complete or update your will, medical directives, and power of attorney. If you have children, an attorney will help create documents related to trusts, allowing you to control when and how they can receive funds in the future.

Beyond estate planning, attorneys assist with real estate transactions by reviewing documents and ensuring that legal requirements are met. They can help draft and negotiate purchase agreements and give advice on zoning laws and property regulations. Additionally, attorneys can help with other legal issues, such as real estate disputes or claims. During real estate sales and transfers of ownership, their professional knowledge and skills can be invaluable in protecting your interests.

When your attorney and financial advisor work closely together , they gain a comprehensive understanding of your overall financial situation. With a good understanding of your finances and goals, your financial advisor can help by posing questions or raising concerns that you might not consider, which can affect the attorney’s recommendations and lead to an even more tailored and effective financial plan.

#4 Insurance Specialist

An insurance specialist is another key player on your financial advisory team, helping to ensure that you’re prepared for unexpected life events. Adding an insurance agent to your financial team will help you navigate the insurance world to find the best value and coverage.

Insurance is an ever-evolving industry that frequently has new products available to consumers. A knowledgeable agent stays informed on available options, including life, disability, health, and long-term care insurance. While many people consider life and disability insurance an expense, it’s more accurate to see them as a way to protect your future earnings.

Surprisingly, about a third of Americans don’t have a life insurance policy, leaving families exposed to financial hardships when primary income earners pass away prematurely. Understandably, you may be wary of adding a new policy, especially as the marketplace is complex and can be difficult to understand, but with the right professional guidance, finding a policy that aligns with your financial goals is within reach.

An insurance specialist will evaluate your current coverage and identify any gaps. As your life circumstances change–whether through marriage, parenthood, or career shifts–they can make recommendations and help you choose the best options for your evolving needs. By explaining different policy types and coverage limits, they can help you understand how each option fits into your overall financial strategy.

Your financial advisor can work closely with your insurance agent, ensuring you have the right amount and type of coverage at a good price. Many financial advisors prefer to work with an independent agent who isn’t tied to a single provider or a limited selection of companies. That way, they can truly offer you the best insurance solutions for your financial plan.

Get Started on Your Overall Financial Plan

Planning for your financial future can be daunting, but you don’t have to do it alone. Finding the right players for your financial team can be challenging, and you might be unsure about the best approach. That’s where the financial advisors at Team Hewins can help.

When you’re looking to grow your wealth and protect your investments, having the right people in your corner can make all the difference. There’s no time like the present to start taking control of your financial future.

Meet our Team of professionals and take the first step to build a financial plan that makes sense for you and your life.

Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Certain information provided herein is based on third-party sources, which information, although believed to be accurate, has not been independently verified by Team Hewins. Team Hewins assumes no liability for errors and omissions in the information contained herein. Certain information contained herein constitutes forward-looking statements. Team Hewins does not guarantee the achievement of long-term goals in the portfolio review process. Past performance is no guarantee of future results, and a diversified portfolio does not guarantee a positive outcome. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future.