Not knowing what a 401(k) really is or how much life insurance is necessary is stressful, but you’re not alone in avoiding these big concepts and financial necessities. The key to managing all facets of your financial life – present and future – is to dig into all of it, to get educated with help from a financial expert, and feel like you are so in control of every money decision that nothing will ever spook you again. Here are just some of the financial concepts that are up for devouring.
1. 529 Plan
If you have children, you’ll want to talk to your financial advisor about a 529 Plan for each of them. This savings plan is designed to cover future education costs. Regular deposits into the account come with tax advantages and the funds can eventually be used to pay for educational expenses for the designated beneficiary. Anyone can open a 529 Plan for a child or rising college student. From grandparents to friends, the tax benefits are there for generous contributors to this financial concept.
2. Retirement
Think you’re too young to be focusing on retirement? Though you may not be anywhere near deliberately removing yourself from active working life, the idea is that you want to be able to afford a good lifestyle when you do reach that milestone. It’s also important to be ready for any complications that might push you into retirement or semi-retirement sooner than expected, like health concerns.
3. Stocks
Not sure where to begin with stocks? Unclear on how this type of investment can benefit you? This financial concept comes in units of stock called shares, which gives you ownership in a company, whether small or large. Also known as equity, your portion of stock entitles you to some of the profits and assets that the company you have chosen to invest in has earned.
4. Estate Planning
There are many elements that fall under the estate planning umbrella, from last will and testament to power of attorney to living trusts. Get a firm understanding of all these parts of your final estate by working with a financial specialist now. You will have decisions to make about whether you want a will or a trust, who your beneficiaries will be, who you trust to make your end-of-life choices if you cannot, and who will be the executor of your estate. These are big decisions not to be taken lightly, but they’re less scary the more you know about them.
5. Meeting with a Financial Advisor
At Hollander Lone Maxbauer, we work with our clients to customize financial strategies that suit your life now and benefit you and others in the years to come. Normalize the idea of meeting with a financial advisor in our Southfield, MI, office as a smart financial concept. Schedule a consultation to learn about the financial terms you need to know and how to proceed with safeguarding your money matters.
