If you’ve talked to friends about their “investment guys,” or if you stay up on market news, by now you’ve likely realized that all financial professionals are not created equal. The services we offer – and how we go about getting you to your goals – can vary widely.
From my experience it seems that for many in the industry, it’s all about the products. They’ll make recommendations and help you purchase the financial vehicles you hope will make your money grow. But that’s all.
And that’s fine, if it’s what you’re looking for.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But those who offer comprehensive financial planning will do more than that. For us, it’s about being available to offer advice on every aspect of your financial life – and beyond that, really. We’ll look at your expectations, your motivations and what you hope to accomplish with your wealth. It is important we understand what your wealth means to you and how you got to where you are today, and we’ll use processes – not just products – to put you on track to getting you where you want to be, with a focus on:
- Creating and implementing a customized plan: Whatever stage you’re at in life, a financial adviser with a comprehensive approach will meet you there. We’ll build a plan that addresses your dreams and goals, but also the concerns that might be keeping you up at night. And while they may need some tweaking, the strategies in that written plan are designed to take you to and through retirement.
- Ongoing communication: Once we understand your ambitions, we’ll check in regularly to be sure you’re satisfied with the course you’ve set and whether anything has or is expected to change.
- Comprehensive management: It’s easy to let your financial life become segmented among assets, liabilities, family needs, business obligations, tax consequences, etc. Comprehensive planning takes it all into consideration, working to help you attain and sustain your financial goals.
Helping with Social Security and Medicare
It’s not a coincidence that the things pre-retirees and retirees say they worry about most (including medical and long-term-care costs, changes to Social Security and Medicare funding, debt, low returns on safer investments and running out of money in retirement) are all matters a good adviser covers in a comprehensive retirement plan – and during regular client visits.
Your financial professional should keep you updated on changes to Social Security claiming options and discuss with you ways to maximize those benefits. He or she should address what Medicare will and won’t cover, and the options you have to help pay for the medical and long-term care costs that likely will come up as you age. And you should talk about ways to account for inflation.
Savers – who now bear most of the responsibility for their own financial security due to the decrease in defined-benefit pensions and the rise of defined-contribution plans - can benefit from that kind of help.
Keeping your plan flexible enough to last a lifetime
Financial advisers who are dedicated to helping clients achieve their retirement goals are constantly exploring what’s out there, keeping an eye on the future about what concerns are relevant and what can be done about them.
The goal is to design a plan flexible enough to deal with our fast-changing global economy and any transitions in your personal life, yet strong enough to keep you on course through highs and lows in both worlds. Confidence keeps people from making unintelligent decisions.
Capital One Investing’s 2017 “Financial Freedom Survey” found that when markets are volatile, 74% of investors would prefer to work with a financial adviser. I would add that it’s also imperative to look for someone who has a clear process for how you can get to your desired end result. It’s really a journey we go on: investigating what your cash flow is, what your expenses are, what your needs are and will be, how much you’re hoping to save and how much you’re willing to lose. That way, at the end of the day, your financial strategy is sound, and you feel comfortable with the plan we put together.
And it’s important to note that you don’t have to wait until you’re right on top of retirement to put your comprehensive plan in place. It’s never too early to start.
Kim Franke-Folstad contributed to this article.
-
Strategies to Optimize Your Social Security BenefitsTo maximize what you can collect, it’s crucial to know when you can file, how delaying filing affects your checks and the income limit if you’re still working.
-
Don’t Forget to Update Beneficiaries After a Gray DivorceSome states automatically revoke a former spouse as a beneficiary on some accounts. Waivers can be used, too. Best not to leave it up to your state, though.
-
What’s the Difference Between a CPA and a Tax Planner?CPAs do the important number crunching for tax preparation and filing, but tax planners look at the big picture and come up with tax-saving strategies.
-
Charitable Remainder Trust: The Stretch IRA AlternativeThe SECURE Act killed the stretch IRA, but a properly constructed charitable remainder trust can deliver similar benefits, with some caveats.
-
Three Ways to Take Control of Your Money During Financial Literacy MonthBudgeting, building an emergency fund and taking advantage of a multitude of workplace benefits can get you on track and keep you there.
-
How Did O.J. Simpson Avoid Paying the Brown and Goldman Families?And now that he’s died, will the families of Nicole Brown Simpson and Ron Goldman be able to collect on the 1997 civil judgment?
-
What Not to Do if an Employee or Loved One Is KidnappedBusinesses need to have a crisis plan in place so that everyone knows what to do and how to do it. Sometimes, calling the authorities isn’t recommended.
-
Why You Shouldn’t Let High Interest Rates Seduce YouWhile increased interest rates are improving the returns on high-yield savings accounts, that may not be an effective place to park your money for the long term.
