Top Five FAQ’s in Family Law and Where Do I Begin?
// FINANCIAL ADVISOR
When should a small business owner start a company retirement plan?
Once you are profitable and have more than $6,000 per year available to contribute to an IRA, start shopping for a plan. An easy choice is a SEP IRA. If you can contribute more, a custom defined benefit plan may be a better choice.
What’s the top to-do item for my financial planning list?
Meet with your financial advisor once per quarter. If you are a DIYer, conduct your own meeting. Either way, be diligent in covering all the critical areas on your financial list so in one year you have completely reviewed each of the items necessary to be both protected and successful. Remember that most financial advisors only focus on investment planning, even though they may consider themselves financial planners. I say this because this could leave big gaps in your financial security. Your list should cover investments such as 401Ks, IRAs, 529 plans, trusts, and so on, as well as insurance, including health coverage, Medicare, HSAs, disability income, and long term care, estate planning, and spending and expenses. Most importantly, cover your objectives — the things you want most in life.
What’s the one thing an investor can do today?
The portfolios we’ve seen from clients over the last year have largely been too aggressive and not a great match for the investor. Get a detailed analysis of both the equities/stocks and fixed income/bonds that you own. Like grocery shopping, it’s important to read the labels and know what’s in your portfolio. We want everyone to consider upgrading their portfolio to include better quality investments. Too many accounts have low-quality parts and pieces that don’t serve you well.
What’s the biggest risk you see for investors who take income?
Income planning for those in retirement can either be a slam dunk or the most difficult planning item. We have seen that many retirees rarely saved enough or maybe have a little below the amount needed. This has caused too many investors to reach for greater income, dividends, and yield from their portfolios. While the account statement pie chart may show an asset allocation that is strong fixed income/bonds perceived as lower volatility, they often own big pieces of high risk fixed-income investments. If you’d like to see if you have too much risk in your portfolio, visit OverShareAdvice.com and click on Assessment Tool to take our free risk assessment.
Are designations and certifications important when hiring an advisor?
Financial planning requires people skills and technical skills. Formal education is required to help clients successfully deal with technical issues like income tax planning, retirement planning, etc. There are plenty of successful advisors who make a living, but are they re-investing their time in education to serve their clients better? The Certified Financial Planner designation is a great place to start, but we believe it should not be the place to end an advisor’s education.
About the Expert
CIMA, CFP, CAIA, CPWA
OverShare Advice and Planning, LLC
Mike Kurz graduated from Midwestern State with a B.B.A. in Finance. He is the CEO and Financial Planner for OverShare Advice and Planning, LLC, where he serves clients both locally and virtually through a Fee-Only financial planning service engagement. Mike and his family are life-long residents of North Texas, and he has a passion for fun on two-wheels.
Get in Touch
OverShareAdvice.com // (469) 777-6559