As a financial planner, I know the importance of having a team working with clients. Nothing has a more direct effect on my client’s success than when they coordinate my efforts with those of their other advisors. Financial planning often involves the coordinated efforts of a team consisting of your legal, tax, financial, and insurance professionals. Many areas of our lives are interconnected, so the holistic approach is appealing, but daunting. Few things are as crucial to your family’s future as financial planning. Regardless of the path your life takes, money will matter at every turn. Your financial team can help you develop a comprehensive plan specific to your individual circumstances.

Michael Gutter, a family financial education specialist at the University of Wisconsin-Extension, explains the need for team effort when he states, “In the wake of recent scandals, and with the level of complexity and interdependence of the decisions we need to make, planning for your family’s financial future requires input from more than one advisor. It will take a team approach to help you sort through all you’ll need to know about rollovers, whether to annuitize or not, asset allocations, and estate planning, and more.” It takes a team mentality to ensure that you are well planned in areas you may be unaware exist, and also to verify that no one individual is taking advantage of your interests. There’s safety in numbers for financial planning.

5 Stages of Life Your Family Financial Team Can Help You Through

Depending on your stage in life, goals, and financial resources, your approach will likely vary over time. Your team can help you target your efforts to meet these specific areas of concern:

1. Family Life Changes

Whether it’s getting married, having a new baby or getting divorced, advice is crucial to making sure you plan for every necessary step. The legal side of all of this usually takes priority, but the financial aspect is just as important. Your financial advisor can give you the information you need relating to your assets, while your insurance individual can coordinate and make the necessary changes. A tax perspective is also useful as you plan ahead and budget for some tax changes.

2. Daily Life

While it may at first feel a little absurd to tell your lawyer about your budget, anyone who’s ever filed for divorce or child support knows how important this can be. What most people forget, however, is that planning your day-to-day finances is an important first step in the overall scheme of money management. This is the foundation on which the more exciting and growth oriented opportunities build. Without a firm grip on your finances, you may prevent yourself from meeting long-term financial goals and objectives. Whether you are saving to buy a home, start a business, fund a child’s education, or secure a worry-free retirement, your financial professional can guide you toward solidifying your future.

3. Protection for that Unexpected Disaster

Without adequate life and disability income insurance coverage, how would your family survive financially should you suffer an untimely death or disability? To protect your family’s future, this question should be addressed when you begin to establish a long-term financial strategy. Your financial and insurance professionals can help you select insurance coverage that will meet your needs and those of your loved ones. There may be insurance options you are unaware of, and you also need to link this facet to your legal professional and investment advisor. Don’t make your loved ones go digging through paperwork for your policies!

4. Retirement

The retirement landscape has changed dramatically over the years. Today, individuals are living longer than ever before. The future of government programs, such as Social Security, is uncertain. Retirement plan funding responsibilities generally have shifted from employers to employees. Additionally, taxes and inflation can gradually erode savings. Your financial and tax professionals can help you create a retirement strategy best suited to your age and goals. Whether you choose to live in a retirement home or not, and what type of retirement you want to experience can vary person to person, and this individualized counsel is incredibly necessary.

5. Death

This is the stage of life that no one wants to prepare for, but it’s one of the most important. Passing down estate from one generation to the next is almost a mystery to many. Transferring assets to future generations with the least tax liability is an important goal. There are many tools that can help you achieve your desired results, such as trusts and wills. However, the complex nature of many estate conservation strategies calls for a team of trusted advisors, including an attorney and tax professional to help ensure your plans are consistent with your goals and objectives.

Putting It All Together

Preparing for the long term is a complex process that involves research and careful consideration of both your short- and long-term goals. Your financial team can help you be more prepared to create financial strategies that best suit your situation and ensure long-term success. While I personally feel that the financial planner is the most important part of your financial team, everyone is essential which is why I refer to this as a team rather than a working group. Without good players in every position, you will never achieve your goals.

 

Let’s put together your Family Financial Team and get to work!