Financial Plannings – Innovative Wealth Partner

Financial Planning

Don’t overpay for insurance

We feel it is wise for a consumer to check deductibles and coverages closely. We have found over the years there are many instances when clients were overpaying for coverages that they didn’t know they had and certainly they were not planning on using the coverage. We also strongly encourage our clients to consider taking a picture or video inventory of what items you own currently. We like to see this documentation stored off site in a secure location.

Don’t be cheap when it comes to your legal docs/plans

You can complete a legal doc package that start at a price of only around $150 (ish). Why not just complete these docs now instead of waiting? We have several attorneys that we suggest to complete legal docs and we also feel that this is a critical step in covering all the basics when it comes to financial matters. We have done a few videos on this on another page you can view here: https://innovativewealthpartner.com/estate-guide/ if you want more information on the topic or similar ones.

Have a disscussed and thought out plan for long term care

There is no reason to at least not have a discussed a thought out plan for covering the concept and idea of a long term care need. We know that it is not always realistic to fund a long term care insurance contract but at least having a discussion about what the future could hold is simple. This might entail not only your desires but also how and when you might start to shift money and consider the next steps. We like to see this conversation be something that is done on a regular basis and have a plan that adjusts over time as assets change and needs potentially as well.

Use common sense when seeking increased returns on assets

Taking 50% more risk isn’t worth a 1% increase in yield each year. It can seem like a good idea at first glance but so much of financial matters is simply risk management. Be sure your risks are “calculated rather than random!

Have balance in your overall approach to money

Do not have 90% of your assets in one type of account (IRA or whatever that may be). We see many clients that enter our office that have done a good job of accumulating some assets, and more often than not we see most of those assets in one type of account. We cannot stress how important BALANCE is in ones financial life just as it is in ones life overall in general.

Use debt instruments with common sense

Leverage can be a helpful tool when it comes to money. If you are one of the many consumers in the world that is anti debt, we feel your pain, however, you probably already own more leveraged items that you might realize. We do not like the use of risk to take risk but at time leverage can help when it comes to financial matters.

Be consistent

A lack of consistency is usually just a lack of good planning. We have seen a steady, long term, well thought out strategy to be the most helpful to those who have done well financially over the years. That being said, we do not feel that consistency means its acceptable to sit and forget it. These matters are usually fairly important to ones financial future and consistency along with close monitoring along with the way have proven helpful to most.

Avoid emotional entanglements

Do not buy and hold something that you never want to own or you just want to recoup your cost (cost of money is a big factor). When we say the cost of money, that really means what alternative items you might be able to own with those same dollars if you didn’t own the item being addressed in the first place.

Know when to cut your losses

Life and disability insurance is a good example. We are fully aware that at times in ones life, things change. Do not be afraid of making changes when those changes are in ones best interest. Often times we have helped clients to end the use of some insurance related product because it was just no longer suitable at their age and with the intended desired outcomes. Cash value inside life insurance, disability insurance, chronic illness coverages are all examples of insurance related contracts that can need adjusted to cancelled over time.

Align your actions with your core values

Be sure your actions are in alignment with your objectives. We could go on about this point for a great deal of time but the bottom line is YOU are in charge of your financial decisions and you should care about these topics. We find so many individuals in todays’ marketplace that dislike finances because it can be overwhelming and confusing. We can relate to this but we struggle to think this is a good excuse to be lazy and do nothing.

Hopefully we have not given you too many details in this article but enough. If you would want more information on any of the above points, please reach out to us. We can answer any questions that you might have or address any concerns.

Disclaimer:

Securities offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC . Innovative Wealth Partners is a separate entity from LPL Financial.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: FL, IN, MI, and OH.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Guarantees are based on the claims paying ability of the issuing company.

All investing involves risk, including loss of principal.