Broker Check

Financial Planning: A Task to be Turned Over to the Experts

September 09, 2015

When looking to save money, taking on projects like retiling your own floors, installing new appliances, and painting your bedroom walls are great do-it-yourself tasks; however, when it comes to managing the money that you have saved, it’s best to put your DIY kits away and seek the expertise of a financial professional.  There is a big difference between laying tiles and hammering nails, and investing in your security for the future, so before trying financial planning on your own, consider the risks and dangers you’ll face in doing so.

Your Heart Might Overtake Your Head

Letting emotions take the wheel and drive is a common problem among most people. Two of the biggest causes of negatively impacted financial security are fear and greed. We all have an intrinsic desire for more, but when this creeps into the financial realm it could lead to poor investments. Often times, people invest in stocks that are soaring at the time, but do so with little thought regarding the stocks’ potential for future growth. Likewise, fear often results in selloffs when prices are low. Buying low and selling high is the real determining factor of financial success.

Emotions can also interfere with sensible daily spending habits. As people gain a sense of confidence in their finances, it’s easy to let their good mood get the best of them. Hard-earned paychecks are then thoughtlessly spent on unnecessary products and vacation getaways that may not be affordable in the long run.

Stretching Time is Touchy

While many people pride themselves on mastering several different skills along with exercising the art of multitasking, it’s not always a good idea to juggle so much – especially when it’s your financial security for the future on the line. Consider a member of your household tackling the job of remodeling the basement. They may think there’s enough time to finish the job, meanwhile, a ton of stress is racked up on others living in the home. The good news is, when it comes to planning out your finances, financial planners have already put in years of study and worked for other financial planning firms to perfect their craft so that you and your family don’t have to stress.

As if working, raising a family, taking care of a home, and trying to enjoy free time isn’t enough to keep up with, becoming well versed in the circumstances influencing the market is complex and time consuming in itself. In addition, the ever-changing financial regulations make it tough for the average individual to keep pace.

Anticipating Retirement is No Walk in the Park

Setting aside enough money to cover future expenses is only a portion of planning for retirement. In order to develop an adequate financial plan, several other factors must be considered, such as:

·         Monthly budget

·         Taxes      

·         Insurance

·         Estate management

·         Investments

·         Retirement accounts

A comfortable retirement for any individual means a certain budget must be adhered to, investment funds and estates must be properly managed, risk management policies must be followed, and investments that subject finances to taxes now and in the future must be balanced between accounts.

Longer Life Means Longer Retirement

Thanks to the introduction of better healthcare systems and the widespread practice of healthy behaviors, we are living longer than ever before. According to the Social Security Commission, the average life expectancy of Americans is 84 for males and 86 for females, given that they’ve already aged to 65. The Commission found that the likelihood of people living longer than expected rises as they age as well.

Take a 60-year-old man born in 1953 with a life expectancy of 83.4 years. If he lives to age 66, his life expectancy extends to 86. In other words, the longer you live, the longer you could live. The same data showed that one in four people alive at age 65 can now expect to live past 90.

You are the Sole Focus of Financial Advisors

If you've come to the conclusion that financial planning is a difficult undertaking, you're right. Financial advisors dedicate multiple years to studying accounting, investing, and financial planning systems so they can guide you down the path to financial wellbeing. They complete intense courses of study and pass rigorous examinations, perfecting their craft and enhancing their proficiency to ensure that you and your family’s future is in the best hands.

Rather than diving into the task of guiding your own financial plan, first consider the dangers of doing it alone. Investing in your financial future will pay you back in the end with peace of mind and strength in your accounts and holdings, so find the right financial advisor for the road ahead.

For more information or help in seeking a financial advisor that fits your needs for the future, visit: