Today technology has created many “worlds” of opportunity for us. Choices abound in everything. Remember when there was only one phone company and a handful of television stations. There are now many financial choices as well. We can choose to be prepared for the financial future or we can put the whole situation off. Oftentimes the amount of decisions is overwhelming. A certified financial planner can help you sort through all the information and put together a comprehensive plan.
The first area planners look to protect is a client’s income and ability to meet their financial obligations. This often calls for the purchase of life and disability insurance on key family members.
Next financial advisors need to plan for a client’s wishes in the event of death. The guardianship and financial needs of the minor children need to be addressed. Smooth transition of assets without burdensome estate taxes must be pre-arranged. An updated Will and the potential formation of appropriate trusts address this issue. A Durable Power of Attorney is also helpful in case the client becomes incapacitated and cannot handle their financial matters.
Planners then turn to the client’s retirement and the future college expenses for their children. The financial planner will help the client understand how much is needed for college costs; how much retirement income should be planned for; and how much should be set aside now.
Once the questions are answered, a comprehensive financial plan can be developed. Then, investments can be purchased. These investments must be diversified, rebalanced on a consistent basis, and within the client’s risk tolerance.
The pieces of the puzzle have to complement each other to form the roadmap to your financial success. Or you could just do nothing and hope. The choice is yours. Would you go on vacation without a map or in today’s world without a GPS unit?
Pat Grenier is a General Partner with BRP/Grenier Financial Services in Springfield, MA. Securities offered through Cadaret, Grant and Co., Inc., Member FINRA/SIPC. BRP/Grenier and Cadaret, Grant and Co., Inc. are separate entities. Pat can be contacted by phone at (413) 736-6712, or email her at firstname.lastname@example.org