|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: How do financial
planner fees work?
|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
previously went to an insurance agent for insurance,
to a broker for investments, to a lawyer
for wills, to the CPA for tax advice, etc..
Yet none of these advisors looked at the client’s
entire picture. The Planning Team believes
that coordinating all of these services
under a single umbrella will save our
clients time and money.
clients on the correct amounts and types of insurance,
as well as investments that fit the
tax profile of the client and proper
estate plans, etc. A financial
planner will help eliminate the often conflicting
advice that a client receives from having
several 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