In my opinion you should have them on speed dial if you desire to build wealth and leave a lasting legacy.  Your aim should be to develop a team that understands your financial goals and advise with a human touch.  Today, I’d like you to consider adding a seventh and final financial friend:

An Estate Planning Attorney

I Don’t Have Enough Money…

Wrong!  People often think of estate planning, wills, and trusts as tools and services for the wealthy.  Not so!  Why?  The laws governing wills and trusts affect the wealthy, middle-class, and the working class.  Additionally, there’s a lot of confusion surrounding wills and trusts.  People, they are not synonymous.  ”A will controls your assets in your individual name when you die, but a trust is used to hold your assets during your lifetime,” according to Vicki Lee Parker, writer for Black Enterprise Magazine.

As a pastor of a thriving church, I can’t tell you how many family fights I had to mediate because no one took the time to consult an estate planning attorney.  Today, many siblings and relatives do not speak because no one took time to plan accordingly.  Since each state has different laws regarding inheritance, your estate shouldn’t be left to the state or do-it-yourself wills.  ”An estate planning attorney can help you set up a trust that offers more flexibility and control over how your assets are managed after you die,” says Steve Hartnett, an estate planning attorney in San Diego and associate director of education at the American Academy of Estate Planing.

I Confess…

As I conclude this series, I want inform you that I practice what I preach.  I have six of the seven financial friends on speed dial and I’m currently interviewing estate planning attorneys.  I plan to make my decison by the end of September and will keep you posted.  Thanks for reading and reflecting on my blog posts and my prayers are with you as you assemble your team!

Did I miss anyone?  Who do you have on your team that I missed?

A “Proven” Real Estate Agent

The recent economic downturn forced many agents out of business looking to make a quick buck.  If you intend to build wealth and leave a legacy, gone are the days when you can call your novice cousin, uncle, or high school friend to help your purchase or sale property.  Times have changed and with so much uncertainty in the real estate market, it’s important to have a proven agent in your network who has the expertise to help you achieve your property ownership goals.

Who Should I Call?

“Take some time to find an agent who knows the market you are interested in and has experience in the specific type of deals you want to make,” says Vicki Lee Parker, writer for Black Enterprise Magazine.  Before deciding which agents to interview, do your homework!  The top agent in your city may not be the best choice for marketing your particular home.  Your choice should depend on which agent is most successful in attracting buyers to homes similar to yours in price and amenities.  Some agents specialize in luxury homes, some in downtown condos, and some in a particular subdivision or price point.  To optimize your selling success, choose an agent who is successful in selling homes similar to yours.  Check out these questions before you list your home.

Do you have a “proven” real estate agent on speed dial?

A Certified Public Accountant (CPA)

“What’s a CPA”

It has been said that “the only thing certain in life are death and taxes.”  As your wealth increases, you will require the services of CPA.  There are many rules and regulations regarding individual taxes and if you don’t have a skilled CPA, you will find yourself in a lot of trouble.  A good CPA will inform you of the best tax position and legal protection you’ll need to protect you from potential liabilities.  The tax codes are complex and change yearly.  Therefore, it’s practically impossible for the average person to keep pace with the most recent updates.

“I Do My Own Taxes”

While preparing your own tax returns my save you money, but, is it wise?  While most computer tax software programs ask questions in order to identify your best tax strategy, they are not helpful when you’re presented questions you don’t understand.  A CPA who knows your income history can help you understand what taxes you’re paying and why.

How are you doing assembling your team?

AN INSURANCE AGENT

We All Must Leave Here

Insurance is a touchy subject that requires a soothing presence to ease the tension.  After all, insurance is all about planning for the unforeseeable.  There’s no getting around the fact, for instance, that your family needs to be provided for in case of your death. Finding an insurance agent with whom you can talk candidly is vital.

Who should I call?

According to Black Enterprise Magazine, “any agent can generalize what the average person should do, but you need an agent who understands your family history, someone you know will understand how your situation changes if you get a new job or face a sudden illness in your family.”  According to most industry experts, “at least once a year you should meet with your agent and review all your basic insurance policies such as car, home, and life insurance.  You should also ask about coverage for disability, retirement, and long-term care options that can be tailored to your needs.”  Having an agent who knows you by name is especially helpful when you have to file a claim after a car accident or major disaster such as a house fire.

Get References

In general, there are two types of insurance agents – independent agents who write for more than one company and contract agents who represent a single company.  I asked my financial planner “what type of insurance should people consider?”  His reply: Life Insurance, Auto Insurance, Health Insurance, Disability Insurance, Home Owners Insurance, Renter’s Insurance, and Flood Insurance (if you live in a flood zone).  If you’re the type of person who prefers sequential steps to get started, you can begin your search by reading this article.

Remember, YOU ARE THE CEO OF YOU, INC.

Over the past two days we have explored a few essential financial friends we all will need at some point in our lives.  If you desire to build wealth, today I’m encouraging you to consider adding a third financial friend:

A FEE BASED FINANCIAL PLANNER

Making financial decisions is difficult.  Make the wrong decision could prove disastrous and may set you back a few years.  There’s a lot you can figure out on your own, but all of us can use help when it comes to something as important as how to save, invest, and plan for the future.

Get References

A reference from a friend or family member is a great way to search for a financial planner. But make sure you’ve got similar needs as the person who’s giving the referral. Go to groups like the Certified Financial Planner Board of Standards and the Financial Planning Association for additional references.

Understand how your planner is getting paid

The three most common set-ups are: Fee-only, fee-based, and commission-based. Fee-only planners don’t get commissions for the products they sell – fees are for the advice they give (my personal preference).  Fee-based planners may receive commission on some products they sell, but most of their money comes from a fee you pay them.  Commission-based planners are paid by the companies whose products they sell.

Remember, you are the CEO of YOU!

A TRUSTED MORTGAGE BROKER

What exactly is a mortgage broker?

Simply put, a broker is a middleman who helps you find a good deal on a mortgage loan.  A mortgage broker does not work for a particular bank or lending institution but rather shops around to find the best terms.

Should you be using a mortgage broker?

Well, a broker can be helpful in certain situations, especially if you have a poor credit history and are having a difficult time finding a lender.  A knowledgeable and experienced mortgage broker can find lenders who are willing to do business with you and can even help make your case when your financial history is, shall we say, less than perfect.

In exchange for doing the mortgage shopping on your behalf (and for assisting you in understanding the various terms and paperwork involved in the mortgage), a broker will get a commission. Typically, this commission will range between 0.5% to about 2% of the loan amount that you decide to borrow.

Finding and picking a trusted mortgage broker is no easy task.  Solicit references from friends, family members, and your networks.  Additionally, you can Google “how to find a mortgage broker” and sort through the links.

So, how are you doing?  Do you have a trusted mortgage broker on speed dial?

According to Black Enterprise Magazine, “there are seven financial friends everyone should have on speed dial.  Economists & academics believe that at least part of the wealth disparity between African Americans and White Americans in the United States can be attributed to the persistent distrust of financial institutions among a larger number of African Americans.”

The first financial friend we all need is a PERSONAL BANKER OR BRANCH MANAGER

Many borrowers spent most of the time focusing on their credit application and forget to build additional resources to help them qualify.  What does it mean to develop a meaningful relationship with your personal banker/branch manager?  It means to attempt to develop a deeper level of rapport with the person on the other side of the desk.  If you can befriend your banker it means it will have an emotional investment in helping you and your application.

This does not mean that they will violate lending policies or commit fraudulent acts, but if the deal needs a little massaging to make it work they will commit resources to get it done.  You can establish a better relationship with your personal banker is simply through respecting their time and treating them with some common courtesy.  You can also go the extra mile by calling them on their birthday, asking them if they want coffee at your next appointment together or contacting their branch manager when they’ve done a good job and singing their praise.

Have you established an authentic relationship with your personal banker or branch manager?

The reason that many successful people had mentors is that people destined to succeed ATTRACT all kings of people, including mentors.  They attract mentors, fans, followers, and even HATERS.  So the way to attract a mentor is to display those traits that will lead you to success anyway.  Like begets like.  Birds of a feather flock together.  Will a mentor lead you there?  Perhaps.  Will one help you in some smaller way?  No Doubt.

Here’s my advice: Don’t seek just ONE mentor.  Instead, focus on doing the things that might attract people, including mentors.  If you do find a mentor, make sure you include others.  Remember, mentors are people, people are fallible, and even gifted doctors misdiagnose.  Fortunately in many of those cases, the patient sought second and third opinions.  YOU SHOULD TOO!

Having just one mentor is overrated;
having several is not.

What do you think?  Do you agree or disagree?

FYI: I thinking about starting a mentoring group this Spring.  If you are interested and live in the greater Chicago area—please email me (urban.pastor@gmail.com) and I will outline the details for you.

Here’s a fact: Those who are comfortable with the status quo do not grow!

This is because remaining in a comfort zone encourages people to do the BARE MINIMUM.  Thus, their only goal is to keep things the same way they’ve always been.  To become successful (according to your predetermined standards of success) you must be willing to push yourself outside your safety zone over and over again.  In other words, you must plan to escape from the “Prison of Comfort.”

Realize that your comfort zone is holding you back – then step outside of it!

Pushing your limits is like stretching your body.  You will know it’s working when you start to feel uncomfortable.  When you feel that twinge, be assured that you are inching your way closer to your ultimate goal.  Let this be the year you decide to break free from the “Prison of Comfort.”  I know you may be afraid, but, I’m encouraging you to be bold and courageous.  I once heard someone say, “Courage is not the absence of fear; It’s moving ahead in spite of your fears.”

What would you do if you knew for sure that you would not fail?

So Who Are You?

Like every organization, every person has a dozen good stories that reveal that person.  Stories move people. Stories excite people. Stories change people.  Your task is to write your story – the true story.  Ask for input from someone who knows you well; someone who can give you perspective.  Start there.  Get help, if necessary, but do it TODAY!

What Do You Do?

Most banks (Pre-Mortgage Crisis Meltdown) almost always ask this question of organizations that come to them for money.  It’s a simple question, but the answers often are not.  You must answer simply, too.  Otherwise you will confuse people.  If it sounds like you do many things, or too many seemingly unrelated things, people will assume you cannot do any of them well.  Here’s an assignment: Ask and answer “What do you do?”  Show it to four people whose opinion you value and ask them:

1. Is it clear?
2. Is it simple?

What Difference You Are Making?

Can you describe what difference you are making in three sentences or less?  Are you ready for this challenge?  Marketers often refer to the necessity of defining one’s “point of difference.”  You must not merely answer what makes you different, but how what you do makes a difference for others.  Ask and answer “What difference am I making?”  Show it to four people whose opinion you value and demand they be ruthlessly tough with their answers.

There are other questions, too; I doubt this list is exhaustive.  But I think I have covered the major ones.

Question: What other life-changing questions do you currently ask?