The Importance of Having a Financial Plan
Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. Not having a financial plan and expecting to arrive at retirement is like trying to drive to a destination without a road map. A financial plan is a road map to a secure retirement.
The Benefits of Having a Certified Financial Planner
Some people decide to do their own financial planning, but you may want to seek help from a Certified Financial Planner professional if you:
- Want to better manage your finances, but aren’t sure where to start
- Don’t have time to do your own financial planning
- Want a professional opinion about the plan you’ve developed
- Don’t have sufficient expertise in certain areas such as investments, insurance, taxes or retirement planning
- Have an immediate need or unexpected life event
If any of the above questions apply to you, it may be time to call Sarasota Capital Strategies.
The Importance of Having an Estate Plan
Estate planning is not only for those with considerable assets. When death or disability silences us we need to have a plan to manage our assets, care for dependent children and relatives, and manage our health care.
Here are a few things to start thinking about:
Take inventory of what you have and determine its value. Account for all items that you can make a decision about. This includes financial assets, real property, intangible property (patents or copyrights), and even computer files and passwords. Assign a value to each item as well as debts you owe. Some assets may already be titled in joint name or carry a beneficiary designation. In these cases that will serve as transfer instructions as to who will receive those assets after you. Anything else will need specific instructions outlined in a will and/or trust document.
Consider whom you would like your assets to go to, if not already decided by title or beneficiary designation.
Below are a few questions to ask yourself when deciding on who will receive these assets.
Are they too young to own property or assets in their own names?
Are they incapable of managing these assets responsibly?
Is the asset illiquid (such as a residence with a mortgage, or an ownership share in a closely held-business)?
Would the inheritor of the illiquid asset have a difficult time coming up with the additional funding that might be needed to hold such an asset?
If you answered yes to any of the above questions this means that it may be more complex than a simple transfer.
Decide whom you do NOT want your assets to go to.
While the majority of people want to help relatives there are some places you would rather your money not end up.
Use life and disability insurance to create an estate if you have nothing to bequest but have individuals dependent on your support.
You will need to get life and disability insurance coverage to make sure your dependents will not be left without resources.
To tie all the different parts of your estate together into a plan that represents your wishes, consult with Sarasota Capital Strategies. We are uniquely qualified in helping create an estate plan, given our comprehensive focus on all aspects of your life as well as the federal and state laws that govern the income and estate tax consequences of asset transfer. Sarasota Capital Strategies can communicate your special needs to a qualified attorney and help you periodically review your estate plan.
The Importance of Incorporating Tax Planning
Taxes can have a major impact on your financial well being. Tax planning is the process of looking at a financial plan and modifying it in the most tax-efficient manner possible. Sarasota Capital Strategies takes into account the timing of income and purchases, selection of investments and retirement plans, along with filing status and common deductions. It is important to not let tax planning lead your financial plan. This can be counterproductive due to the fact that all financial actions will carry some tax consequence.