3 Reasons We Need Catholic Financial Advisors

Today’s Catholic laity (or at least a portion of them) often choose to hire a Financial Advisor that shares their Catholic faith. These Financial Advisors understand their client’s financial issues, are aligned with their values, and are part of their community.

This is why it is crucial to connect Catholics with CFPs®, CPAs, and other experts in personal financial planning that are the right fit for them.

Why we need ‘Catholic’ Financial Advisors

As a Catholic who also happens to be a Financial Advisor, I have seen great strides made in my profession in recent years. These strides have increased standards and enhanced the prominence of financial planning as a valuable tool. At face value, it may not be evident that there needs to be an explicitly Catholic voice in financial planning. After all, are there not many positive changes happening already?

Today, there is a growing emphasis of financial planning over financial product sales. This new emphasis is long overdue. We see this change in the movement towards “fee-only” advice, monthly retainer models, and other iterations that attempt to lessen damaging conflicts of interest present when financial advice is being delivered. In addition, higher standards of excellence are creating a better client experience and satisfaction for consumers.

I think all of this is for the good.

In addition, modern communication has made it possible to receive highly customized financial planning advice tailored precisely for the individual. There are niche Financial Advisors for just about every possible category of people, ranging from:

The possibilities for finding experts who tailor their services for their ideal client are endless.

I welcome all of this creative disruption that is taking place in my profession. Yet, there is more work to do and Catholic Financial Advisors can help lead the way.

After all, the Catholic Church has helped to develop modern science, the western legal system, and even the university. Thomas Aquinas wrote about debt and usury in the 13th century. In the 16th and 17th century the late Scholastics founded scientific economics. While the glory of Christendom has wained, the Church is still a necessary intellectual force in today’s world.

As for personal financial planning, surely there is Catholic take that needs to be heard. After all, should there not be a “Catholic Dave Ramsey?”

3 Reasons We Need Catholic Financial Advisors

They better understand the values and goals of fellow Catholics
Catholic families require technical expertise from their Financial Advisor
Solidarity

#1- Catholic Financial Advisors Better Understand The Values And Goals Of Fellow Catholics

To say that Catholics share the same values and goals is of course a bit more complicate than that. Here in 2020, our Church is culturally and ethnically diverse, which is a testament to it’s universal nature. It is also a fractured Church, as there are serious rifts between the faithful in the pews when it comes to social and political issues. Still, there are many things we all hold to be true that still bind us together. Our love for Christ and his Church are two of these binding principles.
That is why it only makes sense that Catholics will want to share some common values with their Financial Advisor. Let me give you an example from my own experience-
I was approached once by a prospective client who was hiring an advisor in hopes to get his family’s financial house in order. This man was interviewing different Wealth Management firms and looking for the right “fit.”
One Financial Advisor he interviewed actually pushed back on some of the goals that he shared during their interview. Mainly, the family’s goal was to live off of one income and allow the wife to stay home with the children. The Financial Advisor bristled at this idea. As this prospective client put it-

He was not supportive of our idea to get my wife out of the work force… so it just wasn’t the right fit.

So this was a Financial Advisor who was actually unsupportive of a financial goal that was extremely important to this family. It was a dealbreaker.
It does not have to be this way, though. A great Financial Advisor will understand that he is not the hero of his client’s story. My job is to patiently assist in getting my client where he wants to go with his finances. It should not be a surprise that our clients have financial goals that may be different from those of the rest of the world.
Therefore, there are a number of Catholic values that a Financial Advisor will need to understand, support, and live themselves-

Strong commitment to the sacrament of holy matrimony
Openness to life
The raising and educating of children
Care for our elderly
Charitably supporting local parishes and communities
Investing in a way that aligns with Catholic beliefs
Building wealth in a moral way
Being a good steward of financial resources

…and the list goes on.
Imagine if every financial planning experience for a Catholic was one where their advisor helped them understand their goals, clarify tradeoffs needed to achieve those goals, and ultimately align their financial life with their values. This is what needs to happen.

#2- Catholic Families Require Technical Expertise From Their Financial Advisor

There are also some technical aspects of financial planning that Catholic Financial Advisors will need to specialize in to best serve their clients. Various specialties are listed on the Catholic Financial Planners Network site in order to help differentiate between our various members.

Here is a short list of some of the areas of specialty that are of interest to Catholic families:

Student Loans
Financial planning for newlyweds
Insurance & Healthsharing plans
Investment management
Tax planning
Self-employed taxes
Estate Planning
Charitable Giving

Of course, this list is not exhaustive or is it unique to Catholics. Still, it is a useful starting point in matching a client with their ideal Financial Advisor.

#3- Solidarity

Perhaps the most obvious example of why a Catholic Financial Advisor and a fellow Catholic should partner together is the simple act of solidarity. Solidarity takes place when we support those in our own Catholic community. After all, a great Financial Advisor invests in his clients future just as his clients are investing in him. Similar to how the Knights of Columbus were founded with the intent of supporting widows at local parishes, a Catholic Financial Advisor can bring quality financial planning work to those in need at his own parish.
There is on important pitfall that needs to be addressed here. A problem arises when the goodwill of fellow parishioners is abused through tacky or even unethical sales practices. There is nothing worse than when the “guy who advertised in the bulletin” burns a relationship for acting in an unethical manner.
I believe it is essential that a careful planning first approach always be taken before making investment recommendations and giving financial advice. A certain degree of objectivity and independence is also vital and necessary in today’s world. Catholics who assist people in important decisions regarding their wealth need to conduct themselves with the highest integrity, competence, and biblical stewardship. It is the minimum requirement necessary!

Get Involved

The Catholic Financial Planners Network is all about exploring the intersection of faith and finances. If you are looking to hire a Financial Advisor or join our network, you are in the right place. There are two ways that you can get involved:

Join the conversation in the private facebook group – “Catholic Money Mastermind”
If you are ready to book a call with a financial advisor – browse the Catholic Financial Planners Network