|
AGS
FINANCIAL
SERVICES |
Gary
F. Restall |
 |
|
|
||
|
How can
someone benefit from a financial planner? |
||
I have been asked many times, “What is financial planning?” Or, “Isn't that for the rich and famous?” Many people wonder if they could use someone like me - a professional financial planner. This article, hopefully, will address these often-asked, important questions. As an overview, financial planning may help you or just about anyone to increase spendable income, lower your taxes, plan for and achieve certain goals, like buying a house or educating children/grandchildren. It may also include goal setting, reviewing current cash reserves and debt situation, as well as your risks. It may be used to plan for retirement and/or monitor your retirement plan's progress. Estate planning or the distribution of one's assets could also be a function of financial planning. Each situation is different because people's goals, time frames and their value systems are different. A financial advisor should ask questions to draw out this critical information during initial interviews and on-going consultations, rather than pull a “cookie-cutter plan” off the shelf. Over the years, the advisor could aid clients in making the adjustments as their circumstances change. People need to understand that when one considers the future, there are no guarantees because no one has a crystal ball to predict exact outcomes. There are historic trends and experiences, but no guarantees for the future. It has been said that financial planning is a science and an art. There may be different solutions for each situation. The question is which solution might the clients be more happy with and more willing to implement? Many clients are, unfortunately, not willing to do what is right for themselves initially. Hopefully, the clients were given full disclosure, along with explanations of the various options available to them. The clients should also understand the positive and the negatives of each option before they, the clients, make the decision. Many clients are becoming more aware that like other professionals - doctors, attorneys, accountants/CPAs, etc. - financial advisors may specialize in certain aspects of the financial profession. For example, the doctor may be a dentist, a brain surgeon, a heart or cancer specialist, or perhaps a general family doctor. The accountant/CPA may be a generalist or oriented towards small business, corporations, taxes, or high net-worth individuals. The attorney may be a specialist in divorce procedures, criminal justice, real estate, probate, estate planning, corporate or business law. You may know the financial specialist as a banker, an insurance agent, a stock broker, a retirement plan vendor, or an overall planner/advisor, etc. The law mandates “continuing education” for most of the professionals just to maintain his or her various local, state and federal licenses and/or registrations. When it comes to finances today, it may be wise to first of all have a “primary” financial advisor who does “comprehensive” financial planning. This person should look at all six key financial areas of one's life individually and then in balance with each of the other areas. A game plan or a road map should be designed to get from point A - where one is now - to point B - where one wants to be. Again, like other professionals, the advisor may call upon other professionals, associations and other resources as the situation warrants it, to assist the client with the agreed-upon road map. Those six key areas in a simplified for are: financial position, which is net worth, cash flow, debt management, cash reserves for emergencies and everyday opportunities; protection planning, which reviews various areas of risk management; tax planning including before taxes, after taxes, tax preparation and tax management issues now and in the future, and investment planning looks at one's goals and time frames and then identifies appropriate vehicles to achieve them. Other keys are retirement planning that requires specific planning and then on-going monitoring to achieve comfortable retirements; and estate planning, which encompasses the individual's pre-determined desires versus waiting for the government to dictate publicly through the courts where assets will go. I personally believe that it is no longer a case of “Can a financial advisor help?” but more “How can he or she help?” and “Can the client and professional work together?” ___________________________________ Gary F. Restall of AGS FINANCIAL SERVICES is an independent Registered Financial Planner, Registered Investment Advisor, Insurance Broker, located in Northboro.
|
||
|
|
||