by Sidney J. Ruth, CPA/Financial Advisor
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Members of the planning team working out of the FIFS offices, from left: J.R. Hager (Life and Health), Chad Yoder (Property and Casualty Ins.), Sid Ruth, CPA (Financial Advisor), and Arlin Lapp (Charitable Advisor - Mennonite Foundation). |
Putting together a coordinated financial plan can be helpful and more cost effective than doing nothing. Here are six simple steps to make financial planning more manageable.
1. Choose Your Team -
Who you choose will determine your confidence in the final plan. It would be difficult to find one person who is adequately trained or licensed in all areas necessary for an integrated plan. So, choose a team of professionals you can trust. Potential members of this team include:
• Financial Advisor –
A financial advisor can quaterback the financial planning team and should take an active part in directing the formation of the plan.
• Tax Professional – A tax professional provides insight into your unique tax situation, and provides current and future tax implications of various solutions.
• Property and Casualty Insurance Agent – Your agent can identify vulnerabilities and solutions to protect your physical assets from loss or damage.
• Life and Health Insurance Agent – An agent will provide guidance and protection against catastrophic losses due to death, disability, or sickness.
• Attorney – In addition to crafting your will, an attorney will provide guidance on many estate planning and administrative issues.
• Trust Administrator – If you select a trust company as executor of your will or trustee of their trust, you should consider involving the trust officer as you form the estate planning section for your financial plan.
• Planned-Giving Specialist – These are experts who are well versed in the methods and options for charitable giving.
2. Gather Information - A completed fact finding list includes your goals and objectives, shows your assets and liabilities, measures cash flow, and notes the current status of your retirement, estate, and risk management planning.
3. Analyze Data - Each team member analyzes your data.
4. Review Recommendations
5. Decide and Implement - Select the options that best fit your needs and goals. Sign essential documents, purchase needed insurance, and re-allocate investments as necessary.
6. Periodic Review - Start the cycle over. Many advisors recommend an annual plan review.
This brief synopsis should give you the confidence to get started, or to fine-tune your financial plan. Call FIFS at 267-384-5300 today to set up a complimentary consultation.
FIFS Connection, Summer 2006, Vol.3, No. 3 |