The couple had made every mistake you could: retired too early, spent too much, took on too much house and too much debt. “This is killing me,” Sarah told the advisor, as she burst into tears.
Creating Financial Plans
What a lot of people don’t understand about financial advisors is that they are not there solely to plan your future. They are at your side when a present-day catastrophe strikes.
The market is unpredictable, however much you want to believe otherwise. Instead of trying (and failing) to time your entry and exit, you should structure a portfolio ahead of time that better handles market swings.
Your net worth is a barometer of your financial health. Regularly checking this number helps you assess where you’re at, measure your progress toward your goals and build a financial plan.
Taking care of your finances is your responsibility, but you don’t have to do it alone. An advisor, or better yet, a certified financial planner, comes in useful anytime, especially when changes in life create new financial obligations and challenges.
Financial planning takes time, often decades, to show its results. In the long run, wealth goes to those who have a plan – and a good advisor is the best way to make a smart one. Those with planners do better than those without.
Even as steady paychecks begin to roll in, young adults face a tough road: a volatile and inherently chancy savings vehicle in investments and a retirement that, although far off, will likely cost an unprecedented fortune. What can you do if you’re just starting out?
You started this year off with grand resolutions and intentions, but the demands of everyday life got in the way or your financial plans just became overwhelming. Try tackling big goals in more manageable, bite-sized pieces, such as one a month.
You’ve likely seen commercials that urge you to consolidate all your debt into a loan on which you make the heralded “one low payment.” The concept promises to free some cash so you can more easily live paycheck to paycheck. The consolidation plan also, if you use it too soon, does nothing to address the root problem of your debt.
Valentine’s Day is of course an extremely popular day for marriage proposals. Regardless of which side of the engagement you’re on, consider when deciding to take that next big step how, when and where to wed not just each other, but also your finances.