If you are a business owner, your main concern is naturally to maximize the productivity and profitability of your company. In doing so, you not only provide for your own comfort and quality of life, but for the inheritance of your family members as well. However, you may be making financial mistakes that will adversely affect the amount of money that you leave your successors and family members.
To correct these errors, you may need the assistance of a qualified financial adviser. Here is a short list of the 5 most common signs that a financial adviser may be a valuable addition to your team.
5. Do You Know If You Are Saving Enough Money?
While this may seem ridiculous at first glance, the fact of the matter is that you may not have a completely realistic idea of just how much money you are putting aside for your retirement, as well as your legacy for your family. You may not even have a firm idea of just when you will retire from your position.
Of course, you can consult an online financial calculator that will give you a very rough idea of just how much money you can reasonably expect to live on after you retire, but this device should never be mistaken for a reliable indicator. You have no way of predicting the true extent of your health costs, or the future course of your investments. For these reasons, hiring a financial adviser is an excellent way to get a firm grip on your savings.
4. Have You Set Up A Legacy Plan?
How well are your spouse and family members provided for after your death? Are you sure that your legacy plan covers all exigencies, such as an increase in the cost of living? Are you sure that enough money will be left over to provide them with essential life comforts after the cost of your health care and funeral expenses have been deducted?
If you have been neglecting to set up a will or trust, now is the time to do so. If you are unsure of how to proceed, a financial adviser can be of assistance in drafting the documents in the correct manner. If you any questions or concerns regarding the reliability of your documents, a financial adviser is the perfect individual to seek assistance from in these matters.
3. Do You Have A Strategy To Deal With Financial Reverses?
If you do not have a strategy in place to deal with serious financial reverses, such as disastrous downturns in the market, or a major disruption that affects the desirability of your company's goods and services, you will be facing a potentially bleak future if some tragic event should occur.
It's no secret that the market fluctuates between the full flush of success and the sting of recession. If you do not have a strategy in place that will allow you to protect your retirement capital, you may find yourself shirtless in the aftermath of a severe downturn in the market. A financial adviser can help you plan for the lean times that can be reasonably predicted, as well as the tragedies and emergencies that cannot be foreseen.
2. Do You Know How Much You Are Really Paying For Your Investments?
Even the investments that you regard as a mere tax write off are costing you. Meanwhile, your most important investments, the ones that you build your portfolio around, are awash in “hidden” costs, such as administrative expenses, front and back end fees, management fees, and the like. In addition, of course, you are being taxed the whole time.
Are you sure that the return on all of your investments is adequate to cover these multiple fees and expenses? It's an excellent idea to sit down with a financial adviser and go through all of them to make sure that your investments are paying you a truly secure and substantial amount of return.
1. Do You Always Receive A Tax Refund?
This may be the most telltale sign that you are not fully prepared for the future. In simple terms, if you are owed money by the government, rather than owing money to them, your income isn't as substantial as you might like to believe. A financial adviser can help you maximize the efficiency and yield on all of your various investments, so that you will have enough excess money to owe the government.
While this may seem like a dubious goal to shoot for, the reality is that you will thus be generating enough income to provide not only for your own retirement but also for the financial security of your loved ones after you pass.
A Financial Adviser Can Organize Your Future and Your Legacy
A qualified and experienced financial adviser, such as Patrick Dwyer Merrill Lynch, can handle these affairs on your behalf and ensure that you will be providing for your own quality of life, as well as that of your dependents, in a secure and reliable manner. The sooner you fully address and correct these critical issues, the sooner you will have peace of mind concerning such issues as your eventual retirement and the legacy you leave behind.