The headlines can make your heart pound.
Market news, global economies, invasions, supply chains, inflation, energy bills, grocery prices.
And each of those has a direct impact on our stress levels when thinking about our finances.
Sixty-four percent of us report financial anxiety affects our mental health, according to data published through Empower.
We have so many questions! How long will high inflation last? Will the supply chain ever straighten out? Will gas prices ever go down? Will housing prices calm? Will I be able to afford higher education for my children? Will I be able to retire when I want to?
Whew. Deep breath. The world is still turning, and with the right supports, you can reduce financial stress.
Do you have a financial plan?
One of the biggest steps you can take toward feeling less anxiety around your finances is to have a well thought out financial plan.
“A certified financial planning professional can help you take into account your current situation, your goals, and provide recommendations and guidance on how those goals might be achieved,” says Tom Williams, CEO and Senior Wealth Advisor at local wealth management firm Domani Wealth. “It’s also important to work with someone who is a fiduciary – which means they are always required to act in your best interest. Not every financial advisor is.”
A comprehensive financial plan can include recommendations on options to protect and manage what assets you have and what steps to consider taking to help you reach your financial goals. Everything from tax ramifications, risk levels and asset allocation may be included.
Having a plan that can be revisited and adjusted as needed when life or economic changes occur can help you feel peace of mind.
Who are you relying on?
Are you relying on someone you trust to help you with a plan and your needs? What expertise do they have? How long have they been managing the technical aspects of someone’s finances, and have they worked with someone with your needs before?
“Having someone in your corner who is regularly thinking about the details of helping you manage your finances can be an enormous stress reliever,” says Mike Dinan, Senior Wealth Advisor at Domani. “You know they are there to answer questions and are being proactive in assisting you with keeping your finances on track.”
What should you ask?
If you’re looking to meet with a financial planner, you should come prepared with questions to gain greater comfort before you move ahead with a relationship. You might ask:
What services do they provide?
What credentials does their team have?
What is their investment philosophy – how
do they approach investments for their clients?
Are the investments they recommend for clients proprietary, or do they choose from a wide variety of options?
How much do they communicate with clients?
How do they get paid? Most fiduciary-based firms will be paid by fee, rather than commission.
Do they work as a team or does each client only receive the expertise of one person?
Being prepared can help you choose a great advisor that fits your needs moving forward.
What about taxes?
Taxes are a must to consider when navigating a financial plan. It’s not just about a goal and a recommendation to get there, it’s about awareness of how taxes will affect you along the way.
“Periodically, your financial situation should be reviewed to best minimize your tax position,” Williams says. Regulations change consistently. Maximum allowable deductions are often updated annually by the IRS. These facets and more will have an impact on you directly, so partnering with someone who has experience, who keeps you informed about the planning recommendations and who can work with your tax preparer can help you feel less anxious.
How do investments play a part?
“A portfolio management team can keep and monitor your investments, rebalancing your portfolio to help improve results over the long term as markets shift,” Dinan says. “A great investment team strives to ensure your investment strategy is well coordinated with your financial plan.”
Knowing a professional is helping to keep a very close eye on your assets and your financial plan means you may worry less and sleep better, even when the headlines and your blood pressure are not the best.
"Having a plan that can be revisited and adjusted as needed when life or economic changes occur can help you feel peace of mind." — Holly White
