October is national financial planning month, and it serves as a good reminder to review your finances. Let’s look at a few topics to discuss with your financial planner.
Getting an accurate picture of your current financial position is the first step when reviewing your finances. Your advisor should review your current income, expenses, net worth, and ensure you have a proper emergency fund in place. This is the foundation for getting your finances in order.
This area is to help ensure you and your family are prepared for life’s unexpected events. Protection planning covers topics such as healthcare, life insurance, and long-term care coverage. You and your financial professional will review if insurance coverage or other products are appropriate for your current situation.
Building a proper investment portfolio is one of the key reasons people seek a financial advisor. Make sure to review that your investments are taking the appropriate amount of risk for the goals you would like to achieve.
Taxes are complex and always changing. By planning effectively, you can reduce your tax liability. It’s important to invest in a tax efficient manner and to take advantage of the most recent credits and deductions allowed by the IRS.
It’s never too early to plan for retirement. Review your retirement goals annually to ensure you are taking the appropriate steps to achieve them. About half of Americans (49%) cite running out of money as their main retirement concern (AARP). Projecting the longevity of your assets is a major part of retirement planning.
Creating an estate plan can give you greater control of your legacy. You worked hard to save and accumulate wealth over time and working with your financial professional can help ensure its distributed properly. Common items to review would be beneficiaries, wills, trust, succession plan, and more.
When it comes to financial planning, everyone can benefit from having a trusted advisor to go to. There’s always room for improvement, and if you need help getting started or reviewing your current situation, please give us a call.
Disclaimers and Sources:
Half Americans Fear Running Out of Money: Here
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Please consult your financial advisor regarding your specific situation. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. All investing involves risk including loss of principal. No strategy ensures success or protects against loss. This information is not intended to be a substitute for specific individualized tax advice. The Standard & Poor’s Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
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