Investment advice is everywhere - from newspapers, magazines and web sites, to well-meaning friends, neighbors and co-workers. But can an investment journal alone determine your tolerance for risk? Is your neighbor an expert on asset allocation? And should you formulate a long-term investment strategy on your own?
That's why, for many people, the preferred way to approach investment and retirement planning is through the guidance of an experienced financial/life insurance professional.
Why Turn to a Financial/Life Insurance Professional?
Simply put, planning for your retirement is too important to leave to anyone else. There's too much at stake. After all, if you or a family member were sick, would you prescribe medical treatment yourself, or seek the help of a qualified physician?
Many websites provide calculators that help determine life insurance needs, college planning, retirement savings and other investment concerns. But these online tools typically work independently of one another.
A financial/life insurance professional, on the other hand, can help you with your overall financial goals. He or she can help you determine the optimal mix of investments - 401(k), mutual funds, life insurance and variable annuities - to ensure that you are taking full advantage of defined contribution limits and tax laws, based on your specific situation.
Your financial/life insurance professional is trained and experienced. They can advise you on the countless investment, insurance and retirement products available in today's financial market. They have access to technological resources and information that may be unavailable to most investors. And they have experience working one-on-one with individuals just like you to:
- Identify your specific needs and investment goals.
- Assess your current financial situation and tolerance for risk.
- Help you develop a long-term investment strategy.
Developing Your Retirement Strategy
Working with a financial/life insurance professional can provide you with access to a diverse range of investment choices. They can explain how each product works, the potential risks and rewards, and how each type of investment would fit into your long-term strategy. The financial/life insurance professional's personal service may include:
- Periodically reviewing your financial situation.
- Monitoring your current investments.
Recommending adjustments when conditions change.
Choosing Your Financial/Life Insurance Professional
When seeking investment advice, ask yourself:
- Is this person willing to take the time to identify my specific needs, my financial goals, and my tolerance for risk?
- Has he or she clearly explained how each investment type works, and pointed out the potential risks as well as rewards?
- Do I feel comfortable with his or her suggestions and recommended strategies?
- Would I recommend this Investment Professional to my family and friends?
The concepts contained herein are not intended to serve as advice and may have legal, tax and accounting implications. Consult your Attorney, and CPA for advice.