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John Dubots, Financial Advisor, on Financial Planning for Middle Class Families
John Dubots, Temecula Financial Advisor, discusses the unique challenges faced by middle-class families with regard to financial planning.
By: Dubots Capital Management
In addition to the difficulty many have faced in finding a financial planner, middle class families have always endured challenges which are quite different from the upper class. For one thing, the recession hit them much harder, making retirement planning even more of a challenge. The housing crisis forced many out of their homes or created a situation in which they were “underwater”
Without adequate guidance, middle-class families – these same families who cannot afford to make mistakes – often stumble into financial blunders. In fact, a 2012 report* by Consumer Federation of America and Primerica found that two-thirds of middle-class families have made a major financial mistake costing between $5,000 and $23,000. This finding underscores the need for middle-class families to find professional guidance to help them with financial planning.
Fortunately, there is an answer for those who require financial planning services, yet cannot afford planners who specialize in wealthier clients. These families often turn to boutique-style services, in which the advisor agrees to meet with these clients for an hourly fee. More advisors, particularly small start-ups and online services, are beginning to offer this type of fee arrangement. It's a small investment in knowledge and expertise, which often turns out to be invaluable for families who otherwise could make serious planning mistakes or even find themselves unable to retire.