How Financial Planning Pays For Itself

There are a handful of quotations about “investing in yourself” or how “quality costs” that we could use to open up our post. 

Instead, consider the lengths you’ve gone to to save for your future and all of the important goals you have. Ask yourself how much money you’ve saved with an excellent tax strategy in place. Or perhaps, imagine how much value you’ve gained by developing an air-tight estate plan that covers everything that matters to you.

Some of these certainly have a dollar value, but some of them are simply invaluable. And, it’s in these things that paying for professional financial planning ends up paying for itself (and more).

With A Solid Tax Strategy

Taxes are complicated and you don’t have the time to be researching every time a new law comes into play or another is amended. That’s why accountants exist after-all. A financial planner who is worth their salt is one that will work seamlessly with any other financial professionals. 

But, a true expert who will bring extraordinary value is one who is a “one-stop-shop” for you for helping with your tax strategy not just for right now, but for the future! 

Your accountant can certainly help with the “right now”, but a financial planner, knowing your goals and objectives for retirement, long-term care, education funding for your children, etc. can develop the yearly blueprint necessary to make it all happen, and be as beneficial to you, tax wise, as possible. 

If you’re not already partnered with a financial planner for your taxes, ask yourself, for example, if you know all of the ins and outs to help you prepare for retirement. Do you have a 401(k)? A Roth? Do you know what to do with it? Do you know what the tax implications are upon withdrawals? Are you aware of the penalties if you withdraw early or for hardship reasons? Or what happens to your beneficiaries taxes if they inherit your funds after you pass? 

A great planner will make all the complicated stuff easy to digest.

With On-Point Estate Planning

If you thought taxes were confusing, just wait until you try and plan your estate! It really isn’t as simple as “who gets what and how much”. There could be succession obstacles, asset transfers, tax implications, tax implications, oh yeah and did we mention, tax implications?

We’ve written a few times about the importance of estate planning, how to choose a power of attorney, etc. And while it’s true that anyone can plan their estate alone, even the least complicated financial portrait could benefit from professional financial planning. 

Most people aren’t aware of the tax implications that their heirs may face - imagine inheriting a large retirement fund and realizing Uncle Sam is going to come knocking for his chunk? 

With on-point estate planning, you will protect the people and things that matter the most to you the way you want. Some things you can’t put a price tag on, which brings us to...

With Guidance During Market Volatility

If 2020 has taught us anything (other than the fact it is possible to overuse the word “unprecedented)”, it’s that we could all use a solid backup plan to bring us through the storm. Whether that backup plan is your standard emergency fund or a beefed up version is up to you, but the emergency fund is only half the plan. Having guidance about how to use that fund, should you wish for it, is the second half. 

And it’s not just during market volatility, either. Knowing you have a financial professional who has “weathered the storm” is an invaluable asset to have on your side at all stages of your life, with all the changes it will bring, both planned and unplanned. 

If your financial planner is a fiduciary, it’s the best case scenario. They are legally obligated to act with your best interest at heart - full stop. And sure, no one can see the future, but the worst plan is no plan. A solid financial blueprint guides you along the good and the bad and a good financial planner can be there to guide you through the storm.

Financial Planning That Brings Real Value

If you’re convinced that partnering with a financial advisor will help you meet your goals (trust us - it’s worth it!) and want to break ground on your financial future, give us a call today!