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| Question:
Does everyone need a financial plan? |
| Answer:
Absolutely! Not everyone needs a “written” financial plan however. Sometimes
a plan can be mapped out in an outline format to cover all the basics. Everyone
should plan for the future. Setting goals for the future and reassessing
them each year will increase your chances for success. To build an “ark”
to weather the inevitable storms of life, you must begin by assessing what
available tools you have with which to build it (your assets, cash flow,
etc.), designing your “ark” (your plan), building your “ark” (implementing
your plan) and then monitoring the course you’ll sail (annual reviews). |
| Question:
Doesn’t using a financial planner cost a lot?
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| Answer: Financial Planners work with
clients in many different ways. Fee-only planners charge a fee and make
no commissions. They do often time, also charge a fee to manage your assets.
For most clients, these fees can be more than one wants to pay. Most financial
planners also are licensed to sell investments and insurance. In this case,
they are paid by the companies whose products they provide
— commissions.
When working with a planner on a commission basis, there is a potential
conflict of interest if the planner chooses products based upon the commission
paid rather than the need of the client. However, if a fee-only planner
only recommends his portfolio management service and doesn’t include other
types of investments and managers, that can be a conflict as well. That’s
why it’s important to choose a planner who is ethical and places your needs
first. You can count on being placed first at The Planning Team. We are
available to work with clients on a fee-only basis, fee plus commission
basis or commission-only basis. |
| Question:
When should someone begin to plan for retirement? |
| Answer: NOW. If a person begins to work
at age 22 and begins saving 10% of his or her income (that includes any
contributions by employers to 401k plans), that person may never have to
worry about retirement. If he waits until he’s age 50, he’d need to save
substantially more of his income if he’s saved nothing up to that time.
Putting off saving for retirement can be devastating to your future. |
| Question:
What will financial planning do for me? |
| Answer: Financial planning came into
being to solve a need -- COORDINATION. Clients used to go to the insurance
agent for insurance, to the broker for investments, to the lawyer for wills,
to the CPA for tax advice, etc.. Yet none of these advisors looked at the
client’s entire picture. Coordinating all the areas a financial life can
save a lot of money for the client – correct amounts and types of insurance
will be chosen, investments that also fit the tax profile of the client
may be used, proper estate plans will be utilized, etc. A financial planner
will eliminate the often conflicting advice that a client receives from
having so many different advisors. Can you imagine a sports team ever winning
a game if there were no game plan or coach? The financial planner is your
coach but you own the team – you make the final decisions. |
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:: South
West North ::
Houston
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Katy :: Spring
:: 1960
::
The Woodlands
:: Humble
:: Conroe
::
Willis ::
Magnolia :: Texas ::
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