Why You Need a Financial Planner More Than You Think

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Why You Need a Financial Planner More Than You Think

Do you think you have too little money to need a financial planner? My name is Evelyn, and I have worked with a personal financial planner for the past seven years. I want to tell you that even if you have only a small income and very little money, you can use the services of a financial planner. I'll explain how investing even the smallest amount of money can help you become wealthier over time. I'll go over investment strategies and let you know how to find the best rates for your situation. I hope I'll convince you that hiring a financial planner is a move that makes sense.

5 Ways To Protect Your Wealth From Loss

Managing your wealth has two components: protecting it and building it. While many people focus on growing their wealth, protecting it is just as important. Here are five things to add to your financial plan.

1. The Right Insurance

Insurance is an inexpensive way to provide a great deal of varied protection against financial loss. You can insure your home, vehicles, investment properties, bank accounts, health, and life for a comprehensive financial safety net. Go over your assets, health, and family situation to determine what types of coverage you need and at what levels.

2. A Balanced Portfolio

Your investments should be carefully monitored to ensure that they provide a balance between risk and return. While some risk is inherent in investments and necessary for growth, too much of it could put you in financial danger. Each investor's risk tolerance is unique to their situation, and it changes when factors change, so you should assess your balance on a regular basis. 

3. Careful Use of Debt

Debt can be a useful tool, allowing you to purchase large assets like investment real estate or to increase your earning power through education. But debt can also be a financial drain that puts you in a risky position. Too much debt can cause problems if your income varies. Therefore, a careful strategy of debt use is vital for stability.

4. Sufficient Liquid Assets

How much do you hold in liquid assets that can easily provide needed cash in an emergency? Liquid assets include cash and bank accounts, but they aren't limited to these. It could include certain easily sold investment assets, short-term investment tools, and even access to low-interest credit. At a minimum, liquid holdings should equal at least six months' expenses.

5. Use of Trusts 

Have you protected certain assets from personal and business risk? Landlords, for instance, do well to use special asset trusts for holdings that shield the owner from financial liability and protect each property from seizure for debts unrelated to it. You may also opt for revocable and irrevocable personal trusts to create separation between you and selected assets as well as to create continuity if anything happens to you. 

Where to Learn More

Want to know more about adding smart financial protections? If so, start by meeting with a financial planner who specializes in wealth management. Together, you can assess your personal risks and decide how to protect your nest egg through insurance, diversification, trusts, cash strategies, and wise use of debt. Call today to make an appointment.