Financial Planning
You've heard the saying that failing to plan is planning to fail.
As a part of a professional networking group that meets weekly I am frequently reminded of the truth behind this.
We have a tenured Estate Planning Attorney that monthly shares stories of assets going to long lost family members instead of the caregivers to which the funds were intended. Or children put in the care of undesirable family members due to a lack of planning.
As a mortgage professional, it is very evident that most of us today need two incomes to support repayment. What happens if one of those incomes is lost? Most commonly it is due to illness, and sometimes our two expert Financial Planners in that networking group share stories of unexpected death.
This topic can be a somber one. If stories like that are what it takes to get you from inaction to action here, please think of how your absence would affect those you love financially, and get connected with an expert today. As one of our members says 'don't leave your family to Go Fund Me your funeral...'
There are also several net positives in financial planning that can motivate us to action. A good planner will refer you to an expert to set up you Will, Health Care Proxy, Trust, and so forth. What a relief it is to have your paperwork in order!
A great Financial Planner will ensure you are properly diversified and ready to weather the storm of market fluctuations. Even further comfort when the market decreases and you are so well diversified, you know your retirement is protected.
Some of the strategies recommended by Financial Professionals are a combination of:
Term Life Insurance
Whole Life Insurance
SEP IRA
Roth IRA
401k
Mutual Funds with well diversified positions between large cap, mid range, small cap, local and international
Long Term Care option within Insurance plans
Utilizing Tax Loss Harvesting during down markets
CD's and High Yield Savings Accounts
HELOC - to eliminate high rate debt
Refinancing - to reduce loan term, consolidate debt
504 Savings
Business Planning (life insurance for buyout)
Gifting
And so much more...
Financial Planner or Financial Advisor?
Financial Planner
According to Forbes, a Planner may be utilized for more long term guidance.
Financial Advisor
According to that same article, a Financial Advisor may be used for short term planning.
How do they get paid?
While I don't full endorse any one site, or method, I found this Ramsey overview to be a good one. See it here.
So which one is best?
In my experience, a good financial expert can do both. Our Financial Planner is hired to construct plans for folks, paid for that guidance, where the recipients can then shop the servicers themselves. The same Planner also assists with ongoing, long term planning. It depends on the client, and the important thing is they do what is right for each client.
We have worked with both over the years, and prefer to have one expert to call with ALL OF THE QUESTIONS. And, oh yes, I like to ask questions. Sometimes the same ones over and over because the news media sure is good at getting us into panic mode.
Next Steps
So what's the next step?
The first step is connecting with a few financial experts to see who may be the best fit for you. Put your feelers out to see how the planner responds. Who do you ask?
Nicole's Expertise
Just like many referral based businesses, we partner together with the clients best interests at heart.
For example, a great Realtor has a trusted team of experts from Mortgage Professional, Home Inspector, Real Estate Attorney to all of the Contractors.
The experts that we are mortgage professionals are asked about most often are Home Insurance Agents, Accountants, Financial Planners and Real Estate and Estate Planning Attorneys.
It is illegal for their to be a paid referral relationship, which I am all for. You should be able to trust that you are being guided by what is right, unlike the government lobbyists often driven by money.
So who do you ask? A trusted source of course. Whether it be a friend, a co-worker, or an expert from your Real Estate team, ask today.
Nicole's Closing Advice
We love helping clients set themselves up for a healthy financial future, and having a Financial Planner in your corner can be the base foundation of a solid plan.
Reach out any time with questions. It would be my pleasure to help.
Check out a recent You Tube Video posted.
