Every financial client has their own story about what has happened in their life and what they hope to accomplish in the future. Life events can alter even the most carefully thought out plan. Some events clients experience are divorce, loss of a job, health issues, death of a loved one and longevity concerns when entering retirement. All of these events can create emotional strife and have a resulting impact on a portfolio and financial plan for the future.
It takes time for an advisor to learn about a client’s past and their future aspirations. They have financial goals but may have previously experienced problems with their investments not being correctly aligned with their goals. But there’s more to financial planning than just investments.
Advisors believe that financial planning is the foundation for financial situations that can go right and wrong- that can become increasingly complex. Financial professionals that don’t address these additional needs aren’t providing their clients with solutions to common everyday problems.
When things go right, often it’s the same solutions that help clients when things go wrong. It takes a network of skilled professionals to help clients with tax and estate planning, insurance needs, and asset protection. The following are what financial planning addresses so that what you’re working hard to accumulate is not wiped out:
When a client has amassed a significant amount of money (things went right), or there is a considerable loss, insurance provides a means of protection and payment to meet financial obligations and protect your invested assets.
With federal tax rates increasing and the ever-changing estate and inheritance taxes in many states, working with a tax professional and an estate attorney is critical for most clients, and at some point their beneficiaries.
This includes specialized insurance solutions that go above and beyond traditional solutions and are specifically for protection due to your profession, or threats like litigation or theft or other damages that can occur costing you your assets.
Lastly, financial planning many times involves family interpersonal-relationships and planning for how family members will benefit from or take over and manage inherited assets. Advisors help to ensure a client’s wishes are met by including a team of professionals to help accomplish the client’s goals during their life, or possibly after.