Financial Planning

When meeting with a financial advisor for an initial discussion, have these things in mind:

• Cash and Debt Management – Are you finding that sometimes you run out of money before the end of the month?  Having a conversation with a financial advisor can assist you in bringing order to you monthly finances and putting together a plan to get you on solid financial footing.
• Retirement Planning — Have you determined approximately when you expect to retire and how much you need to accumulate as a nest egg? If your retirement is close at hand or if you are already retired, your financial advisor can help you calculate how much you can withdraw for annual living expenses with the goal of not depleting your assets.
• Diversification — During the past several years, investors have experienced considerable volatility as many types of stocks declined and rose in sync. But longer term, owning a mix of different types of investments may help to lower the volatility of your portfolio when one area of the financial markets experiences a downturn.
• Risk Tolerance — How do you react when a portion of your portfolio declines in value? Your financial advisor can help you craft a mix of stock, bond, and other investments (known as asset allocation) that suits your feelings about risk and your investment horizon. Remember that even if you are a conservative investor, earning a rate of return that exceeds the rate of inflation is critical when pursuing long-term goals.
• Net Worth — Have your total assets minus total liabilities (such as loans and credit card debt) gone up or down during the past year? Many investors may be facing a smaller net worth because of declines in the value of stock and real estate holdings. If this describes you, don’t despair. Consider whether you can start saving more in an attempt to rebuild your assets. Or you may want to review your asset allocation to determine whether an adjustment in your portfolio aligns well with your goals.
• Risk Management – Do you have your bases covered in case something happens and you aren’t able to work due to a sickness or injury?  What would happen to your family if you or your spouse passed away?  What would happen to your retirement plans if you or your spouse needed home health care or skilled nursing services?  Your advisor can help you confirm if you have adequate coverage and can also walk you through the “What if?” scenarios that help you clearly understand the amount of risk that you are taking on with your current level of coverage.
• Estate Planning — Do you have a will? Have you reviewed your beneficiary designations? Have you considered the tax implications of transferring your estate to your heirs? If your estate plan was prepared some years ago, it may be time for a review to make sure it is appropriate for your current circumstances.

*Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth..