A financial consultant is a great ally to have at any point in your financial career. Financial professionals can have the largest positive impact when they have the opportunity to work with people over a long period of time, so if you’re looking to maximize your investments, it’s a good idea to consider working with a financial consultant.
In the East Bay, many families count on our team for sound, long term financial advice. We are proud to offer financial planning services related to investments, estate planning, tax planning, wealth management and many other helpful services.
We have formed many strong relationships which have stood the test of time with clients in our community. In this article, we will discuss our approach to long term financial planning. Hopefully this will provide insight into the value a financial planner can provide if you are considering partnering with an advisor.
Analyze Your Current Finances
The first step in creating a long term financial plan is to get a better sense of where you stand today. When we begin working with new clients, we analyze their income, their current investment portfolio, their net worth, and their financial decisions thus far. By understanding how much investment a person has in retirement accounts, cash on hand, illiquid investments, and insurance, we can establish a foundation of knowledge to build a long lasting plan upon.
Discuss Your Risk Tolerance
A financial planner is someone who can use their knowledge to work within your preferences and framework. Some of our clients have no problem putting their money into high risk, high reward investments which can boom or bust. Other clients prefer safer investments with more modest returns. There are merits to either strategy, and many people base their risk tolerance on their current net worth, financial goals, age, and desired lifestyle. No matter your personal risk tolerance, your advisor will use your risk level to guide the plan at every stage.
Establish Clear Long Term Goals
When a planner has a good handle on your current financial situation and your risk tolerance, the next step is to discuss your long term goals. These goals can include specifics about how you want your current lifestyle to look, at which age you want to retire, how much money you would like to leave to your heirs, what steps you would like to take to mitigate tax burdens, and even how you would like to safeguard against unforeseen events. When creating a plan, an advisor will help direct long term investment accounts, retirement accounts, insurance coverage, and diversification options. All of these components will be used in light of your long term goals.
Regularly Discuss and Adjust as Needed
Once a long term financial plan is made, your advisor will set out to follow it and make progress toward your financial goals. However, we strive to make our relationships a long term partnership. This means our financial plans can evolve as your life circumstances change. Maybe you get a big promotion, start a new business, have more children, or otherwise go through a significant change. The good news is your planner is there every step of the way to help. To learn more about our financial planning services, give us a call today.
