Financial Planning

Everyone expects to get older, but not everyone plans for it or the unexpected changes that may come with it.

Fortunately, you can plan ahead to protect yourself and your family against the financial consequences of an ever-changing life. In many cases, insurance may play a key role in protecting you and your family from something like an accident, injury, illness or death. Insurance will never be able to prevent the health issues that come inevitably come with age, but it can be used to mitigate the potential financial consequences of them. Investments may help provide a clearer path toward your financial goals, whether that’s a comfortable retirement or college for you children.

MANAGING YOUR WEALTH

Whether you’re a beginner or a seasoned investor, the more you know about investing – how it works, types and options, managing risk, the right mix – the more clarity you will have. A strong portfolio can consist of individual retirement accounts (IRA), annuities that provide guaranteed income, brokerage accounts for your investment assets, 401(k)s, and whole life insurance for cash value that can build up during your lifetime.

PAYING YOURSELF FIRST

Anyone who has ever managed their own finances knows that saving can be a challenge. There are always expenses that demand a piece of each month’s paycheck. However, when you “pay yourself first” you prioritize your future first. Through automatic savings from each paycheck you prioritize your long-term financial wellbeing and can see your net worth increase steadily. Using this way to save becomes more of a long-term commitment than a short-term challenge: the sooner you start, the longer your savings may have to grow.

PUTTING YOUR MONEY TO WORK

What will you do with the money you save?

If retirement is your priority, consider taking advantage of tax-advantaged investments. Employer-sponsored retirement plans -- 401(k)s and 403(b)s -- can be a great way to save because the money comes out of your paycheck before you even see it. Plus, some employers offer to match a percentage of your contributions.²

For money you may want to access before retirement, consider moving some of your savings into investments that offer the potential for higher returns. Of course, this may mean exposing your money to more volatility, so you’ll want to choose vehicles that fit your risk tolerance, time horizon, and long-term goals.

PLANNING FOR RETIREMENT

Years ago, retirees lived on Social Security and their pensions. Today, many people are living longer and hoping to enjoy their ‘golden years’, but don’t have those pensions to rely upon. This is why pre-retirement planning is key.

Additionally, we may not know when that last day on the job will occur. For some, it occurs abruptly and unexpectedly by way of disability or layoff. If you haven’t done the serious planning, you risk making hasty, ill-informed decisions that can have lasting consequences for years to come.

Here are some important considerations:

• Investment asset allocation
• Income from investments
• Health benefits
• Retirement distributions
• Social Security benefits
• Estate planning

Measuring the Value of a Financial Professional

What’s the value of a financial professional?

Nearly 40% of Americans avoid dealing with their finances because they feel overwhelmed by them and more than 1 in 3 consider delaying retirement.¹

People who are most satisfied with life are also financially confident, and those who are least satisfied with life are struggling with their finances.¹

LOWER STRESS

Many people within 15 years of retirement are stressed when thinking about retirement savings and investments. Working with a financial professional to develop a written retirement income strategy, however, can increase your confidence and happiness.

HIGHER RETURNS

In addition to providing financial guidance, financial professionals may also add about 3 percentage points in net portfolio returns over time, according to a study by Vanguard.²

FINANCIAL PROFESSIONAL ADVICE COMPONENTS

It’s important to remember that financial professionals also may offer guidance that wasn’t measured in the two studies. Professionals can help develop strategies to address complex tax issues, protect against the financial consequences of loss of income, and advise you about your investment choices. They also can support you through emotional times that may negatively influence your financial circumstances or decisions. They can coordinate with other financial professionals on tax and estate management.

Our team of professionals at Financial Growth Partners is well-equipped to serve and educate clients in all stages of life on all aspects of their financial world.  Some products we provide include: 

• Life Insurance
• Disability Income Insurance
• Mutual Funds
• Annuities
• Investments
• Registered Investment Advisory Services

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1. Guardian Study of Financial and Emotional Confidence, 2021
2. Vanguard.com, 2022