FDIC-Insured - Backed by the full faith and credit of the U.S. Government
When the topic of financial planning comes up, many assume it only applies to those with significant wealth or assets. Financial planning benefits everyone, especially those who want to make the most of their hard-earned savings.
Every stage in life has its own set of priorities. Financial advisors not only help determine how to meet those more immediate obligations, but they can also provide direction on how to prepare for those further down the road, from getting ready for retirement to leaving a modest legacy for the next generation.
Taking a long view of finances can provide peace of mind as people move through life’s changes. Here are just a few ways First Interstate Wealth Management’s financial advisors can help ease significant transitions.
Deciding when to retire
Entering retirement is a big step, and one common concern is that these golden years will outlast savings. With assistance from a qualified financial advisor, individuals can get a professional opinion on their situation and receive guidance on avenues to grow retirement savings and investments, if needed, as well as insight on how long savings should last. Financial advisors will consider significant expenses—like health insurance and medical or caretaking—that could draw down savings faster than aspiring retirees anticipate.
With more information, individuals can better determine when they can retire. They can also better understand when to draw on investments and Social Security to realize the best possible tax benefit and maintain their desired standard of living.
Balancing consolidation and diversification
Individuals are often bombarded with seemingly conflicting advice, such as being advised to diversify on the one hand and urged to consolidate on the other. Advisors can help clarify the nuances and offer guidance on balancing these buzzwords.
For instance, individuals may wish to consolidate certain accounts at one financial institution to simplify recordkeeping and manage fewer adviser relationships. Within those accounts, however, it may be wise to diversify how funds are allocated. If significant resources are in retirement accounts, a financial advisor might help diversify those funds among different asset classes and sectors to provide some insulation from dramatic market swings and seek principal protection.
Preparing for transferring wealth
No matter which income bracket someone falls into, it’s essential to have a plan for distributing assets, whether in property, investments, or savings. A seasoned financial advisor should be able to take individuals through an inventory of their assets and provide guidance on how each is titled. Some elements of an estate, such as a home, life insurance, or retirement savings, could be distributed outside of a will depending on how ownership and beneficiaries are designated.
It’s important to review asset ownership to ensure that titles are consistent with how an individual would like them distributed after their death. Additionally, given their experience handling financial matters through life’s cycles, advisors may have experience working closely with reputable and local estate planning attorneys who can be of further assistance.
Get started
Financial planning can provide a strategy that fits your needs and continues to grow and change as you do. Getting started is as simple as making an appointment at your local First Interstate branch. For more information, visit firstinterstatebank.com/personal/wealth.