When we are young, we are taught that setting, monitoring, and achieving goals is a key factor in finding success in life.
As we grow into adults our goals change and evolve. They become increasingly difficult to define and monitor as we begin juggling a full-time job along with family responsibilities. Many of these goals also have a price tag attached.
A financial planner will help you define, prioritize, and simplify the process of achieving your goals by constructing a comprehensive financial plan. They will analyze your situation and develop solutions that will help you achieve your goals in a financially responsible manner.
There is sometimes an assumption that the only job of a financial planner is to manage your investments and help you plan for retirement.
This may be true in certain cases, but for most, this is just a fraction of the services they offer. Financial planners also assist with insurance, education, tax, and estate planning.
Have you ever wondered what would happen to your plan if you were critically injured and could no longer work? Or, what would happen to your family if you or your spouse were to experience an untimely death?
While these situations may seem unlikely, they are possible. A financial planner will do an insurance analysis and determine if a disability or life insurance policy makes sense for your situation. They will also determine how much coverage is right for you.
If you have kids, you know college is on the horizon, but have you really thought about how you’re going to pay for it? A financial planner can estimate the future cost of college and develop a tax-efficient savings strategy that incorporates your current resources. They can also assist you in the financial aid process and help you determine a financial strategy once a college is selected.
Thinking of selling off that large quantity of stock or property you inherited from a family member? Pump the breaks.
This could potentially leave you on the hook for a large tax liability. A financial planner will work with your accountant and analyze your current tax situation to come up with a strategy to make sure that asset is sold efficiently, and the tax liability is minimized.
You have a strong plan now, but what happens once you and your spouse are no longer able to manage your day-to-day lives due to old age or an advanced disease? What will happen to your assets when you pass away?
A financial planner will work with you and your attorney to establish an estate plan that will address these issues. They will help you establish a suitable will or trust to make sure your assets are passed on in the way that you intended.
They can also assist in taking the proper steps to establish a power of attorney and health care proxy so you can be assured that your decisions are being made by someone you trust should you become incapacitated.
The job of a financial planner is to develop a plan that covers all these topics. It’s not just an investment or retirement plan, it’s more like a life plan that’s custom tailored to reflect what’s important to you. The plan serves as a roadmap that’s main objective is to work towards and achieve your unique set of goals.
Whether your goal is to retire early or buy a vacation home, there is a plan that can help you achieve it.
Brandon Witt is a Certified Financial Planner. He lives on Hilton Head Island with his wife and four children. He can be contacted at bwitt@aegiscap.com or 843-715-0182. Witt is a Registered Representative and Investment Advisor Representative with Aegis Capital Corp (member FINRA/SIPC) through which he offers securities and investment advisory products and services. The opinions expressed are for information purposes only and is not an offer, recommendation, or solicitation of any product, strategy or transaction. The views, strategies or products discussed may not be appropriate or suitable and may be subject to risk.
