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FINANCIAL PLANNING
"Why should I hire a planner for something I could do on my
own, with the aid of a computer or by hiring a financial
specialist?"
Good question. Here are some reasons.
ITS ALL ABOUT YOU...
Your net worth,
Your goals & objectives,
Your property & other assets,
Your liabilities, cash flow & investments,
Your retirement planning & estate planning,
Your tax planning & insurance needs,
Your plan for implementing,
Your goal planning is the single most effective action you can
take to ensure that Your wishes, with respect to the disposition
of Your assets, are met.
It is a process, not a product. It’s an organized, well-planned
system of using money and financial resources to achieve Your
short- and long-term goals.
Financial planning is about more than money. At its core,
financial planning is about effectively managing financial
resources so that individuals can lead happier, more fulfilling
lives today and tomorrow. One of the very first steps in a
financial planning relationship is to help clients define their life
goals.
Do you want to start your own company, have more time
to volunteer, change careers, live somewhere else?
How do you balance competing goals, such as saving for
retirement while putting children through college and
help out elderly parents? Ultimately, you are at Point A today
and you are trying to get to Point B. A financial planner should
provide you with a logical road map to get to Point B.
If you could create a perfect world, what would it be?
When asked that question to a local university professor, a
man known for his sour, depressed mood, said he wanted to
live on a farm, far from where he was teaching. The more he
talked about it, the more excited he got, and the more that he,
his wife and the planner realized it was a dream he could make
a reality. Within a year and a half they were happily settled on a
farm in Iowa.
In a good financial planning relationship, the planner and the
client periodically reassess the client's goals, objectives and
strategies already in place to achieve those targets, especially
as life circumstances change. No financial planning or
investment software program can effectively come up with those
kinds of questions, let alone provide the right answers.
Financial planning is comprehensive, not just pieces and
parts. A Financial planner provides valuable services to people
for a specific financial need, such as buying property and
casualty insurance or drafting a will. However, a financial
planner typically provides the overview in order to make sure
the various parts are working in harmony and not against each
other. For example, one professional's strategy to save income
taxes may undermine another professional's investment
strategy. A computer might provide investment advice (though
usually not well tailored to your individual needs), but a financial
planner can help you find ways to free up additional money for
investing. It also is the planner who might discover that your
computer-designed investment plan could be seriously
undermined by a costly medical crisis because you don't have
adequate disability insurance or health care coverage.
Planners motivate. Sure, you probably know you need a will,
better insurance, a budget, a better handle on your
investments and assessment of a host of other financial issues.
Perhaps you could do some of it adequately on your own. But
there's nothing like going to a financial planner to motivate you
to finally take the actions upon which you've been
procrastinating. For example, a recent retirement study by TIAA-
CREF Institute found that people who planned more thoroughly
for their retirement experienced fewer financial "surprises" when
they actually retired.
Planners provide checks and balances. Beyond the
financial expertise and the motivation to take action, the
planner can provide a much-needed objective perspective.
Numerous studies show that investors who work with financial
advisors trade less often and average better returns than those
who invest on their own. Planners can filter out the financial
"noise" that so often clouds financial judgment. This
independent perspective is especially critical when a family is
under stress such as from a job loss, divorce, death or a major
market decline.
Ideally, it's best to create a financial plan before a crisis occurs.
One of the greatest benefits of financial planning is its ability to
prepare you to better handle the inevitable financial roadblocks
thrown up in life that can detour you from achieving your life
goals.
Santos Associates, FEDERALLY AUTHORIZED TAX
PRACTITIONERS, can help you with your accounting, tax
and financial planning needs. Call today for an appointment &
consultation. We are not attorneys, we can refer competent council
upon request.
