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What are the benefits of Financial Planning

Question: What are the benefits of having a Financial Advisor assist you with your retirement goals?

Answer: A financial advisor can help you understand how your current decisions will affect the options and choices available during your retirement and prepare you to accomplish the things you want to do during your retirement.

If you do not have an answer to all four of the following questions, then we recommend that you look into doing a Financial Plan with a Financial Advisor.

  • Do you know the probability of whether you will run out of assets over your life time?
  • Do you have a strategy on how to maximize your social security?
  • Do you have a strategy on how to manage your taxes during your retirement?
  • What is the total number of assets that you need to save for your retirement?

In our opinion, each of these questions is a bigger factor concerning when you will be able to retire than investment returns. Planning for your retirement and focusing on the things you can control will have a greater impact on how you think and act concerning your retirement. For those that want to quantify the benefits they receive verses the cost of doing financial planning, the answer is different for each plan. Others are more concerned about the services that Financial Planning provides and the line items below cover non quantified services.

  • By creating a Financial plan and only discussing it once a year with a Financial Advisor, you are free to focus on the things in life that you enjoy doing.
  • By making decisions now that will provide you with more options during your retirement.
  • By receiving non financial information that will not only help you transition into the retirement you want (part time work, hobbies, travel, grand kids) but also having someone available to ask questions when life does change during your retirement.
  • In the end, when you are older and in your retirement phase of life, having the freedom and dignity to make choices will be worth every penny the Financial Planning process costs. Planning for multiple options when life throws you a curve ball is what Financial Planning is all about.

Please read about the Financial Planning Services we provide and our process. Many people decide to do their own financial planning but fail to account for several factors that influence the process. Using an experienced financial advisor with customized financial software can help avoid the following issues. Using simple projection software fails to address these same issues.

  • Not taking taxes and inflation into account when doing financial projections.
  • Failing to understand how human nature can cause unwise financial decisions.
  • Failing to accurately account for medical advances and the possibility of living longer.
  • Not planning for volatility when taking withdrawals in retirement.
  • Not matching their retirement expectations with the amount they are saving.
  • Failing to make decisions now that will allow greater flexibility in retirement.
  • Not discussing retirement expectations with your spouse.

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