October is National Financial Planning Month, a time to increase awareness about the importance of managing and planning finances wisely. It’s the perfect opportunity for credit unions to reflect on members’ current financial needs and to explore ways to improve their financial health and opportunities for the future. Whether credit union members are saving for a home, planning for retirement, or financing a college education for a child, a good financial plan is key to long-term success. 

Think of financial planning as growth sustainability roadmaps for members' assets—it provides snapshots of where they are now, options of where they want to go, and routes on how to get there. A strong, robust financial plan covers multiple areas and can educate them about budgeting, saving, investing, managing debt, and planning for major life events. Advisors assist members in looking at their entire portfolio to make sure everything is working in financial harmony to achieve desired outcomes.

However, financial planning can be complicated and that's why people ought to seek professional assistance from trusted advisors.  It’s not just about saving money or cutting down on expenses, rather it’s understanding how to grow your assets in a smart, sustainable way.  This is why credit unions that are vested in their members’ wellbeing, should offer these services via bona fide financial planners who are not just salespeople. This subtle but important distinction can make a substantial impact in the lives of credit union members and their financial futures.

It’s important to understand the difference between financial planners and ordinary financial professionals who can operate like typical salespeople. Many large financial institutions hire representatives who are more focused on selling financial products than offering real, unbiased advice. These financial professionals often earn commissions based on the products they sell, like insurance policies or investment instruments. While these products might benefit you, they are often chosen because the selling agent earns money by the sale and not necessarily because they are the best option for you.

In contrast, true financial advisors focus on your overall financial status and in most cases have a fiduciary duty in doing so. Their primary objective is to understand members’ financial situation and provide advice that is in their best interest. A good financial advisor will take the time to understand members' goals and create a personalized plan that meets their needs. Financial planners are not just trying to sell something; instead, they are assisting members in creating strategies that will guide them to personal success.

Since credit unions are member-owned, not-for-profit institutions they exist to serve their members, and not to just make a profit. Unlike traditional banks, which are often focused on making money for their shareholders, credit unions make members' financial well-being the top priority.  Therefore, planning services offered by the institution via trusted advisors who are focused on achieving member financial goals, are aligned with the people helping people philosophy and not to generate earnings. This makes credit unions a great option if you’re looking for honest, impartial financial advice. 

Here are some key benefits credit unions provide when partnered with trusted financial advisors:

1.    Personalized Advice: Credit union financial advisors take the time to get to know members, their goals, and their financial circumstances. They’ll create a plan that’s tailored specifically to them which can be more effective than a one-size-fits-all solution.

2.    No Pressure to Buy: Because credit unions are not-for-profit, advisors are not under pressure to sell products. This means they can focus on what’s best for members, without worrying about earning commissions.

3.    Lower Fees: In most cases, there are no minimums to establish a relationship.  Also, many credit unions charge lower fees for financial planning services compared to traditional banks. This can make financial advice more affordable and accessible, especially for those of modest means.

4.    Education: Credit unions often focus on educating members via financial literacy programs. They provide resources and support to help members better understand personal finance, which can empower them to make smarter financial decisions in the future.

5.    Holistic Approach: Credit union financial planners look at members entire financial picture. They don’t just focus on one aspect, like saving or investing, but instead help members create  comprehensive plans that cover all areas including estate planning.

Finally, a key message of Financial Planning Month is that it’s never too early or too late for credit union members to start planning for their financial future. Whether a recent graduate is just starting a career, or someone is nearing retirement, having a financial plan is crucial. That said, the earlier you start, the more time is provided to grow wealth and prepare for life’s major milestones.  Credit unions are a great partner in this process because they offer the kind of personalized, no-pressure financial advice that can set members on the right path from the start. Working with a trusted financial planner from a credit union can give peace of mind knowing that a plan is in place to achieve a member’s financial goals.

Priority Financial Group (PFG), is a third-party registered investment advisor (TP-RIA) serving credit unions and financial advisors. The PFG team has been helping visionary credit union executives make member-centric, strategic decisions for more than 25 years. PFG is a pioneer in introducing the Charles Schwab and Fidelity advisory platforms to credit unions, and has recognized industry expertise in implementing a best practices approach to taking credit union investment programs to their next level. For more information, visit www.pfgteam.com, call 800.405.8850, or contact CEO Mike Prior directly at Priorm@pfgteam.com.

Investment advice offered by PFG Advisors, LLC. Securities offered through Osaic Wealth, Inc., member FINRA/SIPC.  Insurance products offered through approved carriers. PFG Advisors, Priority Financial Group, and Osaic Wealth, Inc. are separate entities.

Investments are Not NCUA Insured | Not Credit Union Guaranteed | May Lose Value