Derek Jeter needs a coach, you need a Financial Advisor

 

 www.MintcoFinancial.com

Even the canniest self-directed investors should consult a financial advisor.

Sure, sure. You steered your own financial course for years, with decent results. You don’t need to pay some character to help you do it, right? Wrong.

Every player needs a coach, whether you’re Derek Jeter or Harry, the slow-pitch softball catcher. Every writer needs an editor, whether you’re William Shakespeare or Joe, the ad-copy scribe. And every person needs a knowledgeable third party to look over her shoulder and opine about her financial arrangements.

When some think of an advisor, they believe they must turn over all their finances, paying around 1% of assets yearly. Or they think of brokers, who charge by the transaction.

But do-it-your-selfers can consult an advisor once a year for a few hundred bucks (standard rate: $500 an hour). Or pay the advisor a few thousand for a complete financial plan (depending upon its complexity, the charge usually ranges from $2,000 to $5,000). Much of that is tax-deductible.

A skillful advisor asks you the questions you may or may not be asking yourself: What is your goal? To retire in 10 years? To buy a second home? To set up a trust for your kids? To pass along assets you have inherited? Even the most studious amateur may not have the answers to these questions.

Take insurance. A good advisor can help you find weaknesses in your coverage. It may be that the company providing your policy has gone bust, or is about to. If you own expensive jewelry, is it covered in the event or fire or theft?

Some don’t realize that they are not covered by disability insurance. Should they be unable to work, their family’s finances could fall apart. Do you know how much disability coverage you should have? A good advisor can tell you.

Asset allocation is a tricky business. The old rule of thumb is that your fixed-income portion should equal your age. So if you are 40, you have 40% in bonds and 60% in stocks. But that is a very simplistic gauge.

 Other factors come into play, such as your health, your kids’ education needs, your risk tolerance and your job stability. An advisor will look at all your records and piece together what your needs are now – and what they likely will be in the future.

An advisor can do something for you called a Monte Carlo simulation. This tests the odds of your assets growing to the point that you can have a comfortable retirement – determining when it’s safe for you to quit working. It can even give you the odds of having something left over to pass on to your loved ones once you die.

More broadly, an advisor can lay out an entire plan that encompasses every bit of your financial needs, from investments to real estate to insurance to inheritances. A financial plan has many moving parts, and one segment of it can affect the others.

Mintco Financial Team custom-tailor plans for people with different goals. Because each person is different and has different goals and dreams.

Visit our website at www.MintcoFinancial.com

Or call us at 813-964-7100. 

We are a boutique Financial Company that takes each client as a unique one.