Whatever your age or the time of year, whatever your station in life, financial planning is a smart move. It can feel daunting initially to discuss your financial details with an expert but their guidance will prepare you to save for the future and prioritize financial choices. The scariest thing you can do is not get professional support when it comes to managing your assets.
Do Your Homework
If you’re heading into your first financial planning meeting, brush up on your financial literacy. From budget to stocks to taxes, arm yourself with the definitions of financial-related terminology so the choices you’re presented with and suggestions your financial planner makes are clear. From there, you can make sensible, confident, informed decisions as you have important discussions and you will feel better about voicing your questions or concerns every step of the way.
Prepare for the Basics
To develop an effective financial strategy, it’s important to learn about managing risks and diversifying assets. Financial planning includes education in both areas. With risk management, you will determine a sound insurance strategy to protect your family from financial fallout. By spreading investments among different assets – known as diversifying – you can reap great rewards. All strategies are worked out with your financial planner for the best “you” plan.
Set Goals
Are you newly married? In your first job? Retiring soon? There are goals for every stage of life and your financial advisor will walk you through what matters most to you, including:
- College. If you have kids, a 529 Plan is a smart savings choice for each of them to eventually use for educational expenses. Grandparents and friends can establish 529s for children in their lives and help them while reaping the rewards of tax benefits for generous contributions.
- Large purchase. Whether it’s your first house or a new car, financing large purchases takes planning and consideration of your financial standing to ensure that you feel confident about the mortgage, taxes, and other fees.
- Retirement. Working hard over your lifetime should come with rewards when you retire, and your financial planner wants to ensure that you understand everything to do with retirement, including Social Security, personal savings, IRAs, defined contribution plans, and more.
Forever After
Estate planning includes your last will and testament, financial power of attorney, medical power of attorney, living trusts, and other important documents. Working with a financial specialist to understand these documents better and make smart decisions when it comes to beneficiaries, executor, and whether to establish a trust will reduce the natural fear that comes from deciding what will happen to your assets when you have passed.
Safeguard your assets, business holdings, lifestyle, and more, whether you’re just starting out in life or ready to retire. Contact Hollander Lone Maxbauer in Southfield, MI, for support that is comforting and not scary at all.
