In these times of budgetary stress, it’s easy to lose sight of the future and the necessity of planning for its arrival. For too many people, a life insurance policy, and perhaps a basic 401k through their employer, is the extent of their financial preparation for the future. However, a trusted financial planner can help you look beyond the basics to create a sustainable plan that will ensure your family’s financial stability.
One of the first steps a good planner will take is to help you create a budget that includes saving for retirement. The amount you’ve decided to put aside can be automatically deposited into a savings or investment account, removing the temptation to spend your entire paycheck and making saving a painless habit. Generally speaking, setting aside at least ten percent of your income will build a comfortable cushion in later years.
Regular saving is important, but it’s not the only concern when planning for the future. Stocks, bonds and other investments, when used carefully, can supplement your income both before and after retirement. Many people lose sight of the fact that Social Security only covers the most basic necessities. Should you wish to have a comfortable retirement without living in straitened circumstances, you will need to have other resources in place.
Knowledgeable financial planners can take many components of your future circumstances into account, including health, life expectancy, probable inflation rates, how investments are likely to perform, and other factors. Your advisor can also assist with wealth management to maximize retirement income by creating strategies regarding taxes and interest rates.
Your financial planner might also recommend some ways to further diversify your investments if you have considerable discretionary income to distribute. These investments can be anything from fine art or wine collecting to the more standard options such as real estate, hedge funds, venture capital and much more. Your advisor will probably also suggest purchasing a commercial annuity to last for the remainder of your life.
Estate planning is also a matter than many financial planners may tackle. While younger families may not have given this much thought yet, addressing estate planning early is important. You will want to ensure that your family will have a financial cushion if something should happen to you. Your advisor will be able to recommend a life insurance policy that is adequate to your family’s needs, and also how you should designate beneficiaries. Furthermore, he or she can recommend methods of minimizing estate taxes.
It doesn’t matter whether you are an experienced investor or a total novice — just about anyone can benefit from the expert advice of a knowledgeable financial advisor for long-term planning. The right financial advisor can recommend many different investments and other options that you might not be aware of. These professionals can be of great assistance in mapping out a pathway to improved financial security for your family and for yourself.
In the San Francisco Bay area, call on Stoneridge Financial for experienced and knowledgeable independent financial advisors. They offer expert advice and assistance with financial planning, life insurance and other insurance related investment products. This article powered by SEO 2.0 Services
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