Misconceptions of Financial Planning Importance

As our firm continues to build on the momentum from the capital markets in 2020, we are continuing to meet with more and more people that reside in our wonderful community. We are privileged to have been a part of this community for many years and we look forward to many great years ahead! 

During our review/goal planning sessions with clients and potential clients, especially in the discovery process, we focus on what questions and concerns people have. What we have found is that many people have misconceptions about working with a Financial Advisor and planning for the future. Below are a few I would like to highlight:

1.) “All of my money is tied up in my retirement plan at work, I don’t need to worry about having a Financial Advisor right now.”

We run across this often, as the majority of working professionals have most of their long-term investable assets in their 401(k)/403(b) plan at work; however, we believe working with a Financial Advisor can add value to this scenario. What we have discovered is that many of the retirement plans offered by several local employers in the triad have flexibility inside of them for their employees. Some offer After-Tax and/or Roth contribution options while others offer a company stock fund. It is important to review your 401(k) plan at work to make sure your holdings match your risk tolerance and that you are not overweight in one investment/investment option. A good financial team can help breakdown what you own and make sure what you are invested in makes sense for you and your goals.

2.) “I have 20 years before I am 65, no need to plan just yet.”

It is true that if you are 20 years out from retirement, you still have time on your side. However, in our office this is what we consider a critical point in your retirement horizon. As you approach your mid 40’s, you typically are entering the higher income earnings years of your career and this is where you and your family may have more discretionary income in your monthly cash flow. It can be very important to pay down debt, invest outside of your retirement plan at work, or a combination of the two during this time in your life. We utilize a planning software that is, in our opinion, very client friendly and can help more clearly articulate what could benefit your financial future the most. This is also a time where you may have a future goal, possibly a wedding or dream vacation that you would like to plan for, and the earlier we can incorporate this into your plan, the more likely we are to be able to help make it happen.

3.) “Social Security? I am just going to take it as early as possible.”

At Marzano Capital Group, we feel that Social Security should be modeled in financial planning software. We make it a point to drill down into this topic while also leveraging outside professional resources who are well versed in this field to help alleviate some of the confusion. We work hard for our clients, and we feel we have built a network of professionals who can offer advice that is client-centric and based on individual needs/goals. It is important to plan your claiming strategy on how best to claim your benefits and we highly recommend consulting with a professional. 

As stated earlier, we are very fortunate to be a part of this wonderful community and we are excited to continue meeting more people in the area. As a team, we feel that we can add value to your specific financial situation! Please reach out to our office if you feel we can help you in any way or have any questions about our process. 

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor, Independent Advisor Alliance and Marzano Capital Group are separate entities from LPL Financial. 

Related Insights