How much money will I need to live in retirement? How much should I be contributing to my 401k? Do I have enough insurance coverage? These are three very common questions many people ask themselves, and of course their financial advisor. It’s a good place to start the conversation, but the value of having an advisor to guide you through your financial choices is their interest in the less common questions.
- Who will manage my digital estate? Traditional estate planning is essential but don’t forget to consider your digital assets. What information do you have stored digitally? Take an inventory of your accounts and hardware. Choose someone you trust to have access to your digital life when you cannot. Beyond providing passwords and management authority, it is important that you outline your wishes and directives for your digital executor, so they know what to do with all you’ve set up. Don’t forget about personal accounts like your social media pages, in addition to your financial accounts.
- What past money mistakes have I made? Why did they happen? There is no need to live in regret or dwell on money blunders you may have made in the past, but acknowledging the pitfalls you’ve fallen into before will help you be aware of how to avoid similar issues in the future. Breaking old habits is hard, but if you are honest with your financial advisor about your weaknesses and fears, they should be able to help you through decisions.
- Do I have documented information about my parents’ wishes and estate plans? Don’t assume that your parents (or other relatives for that matter) have a plan in place that aligns with your expectations. Surprise financial responsibilities can severely derail your personal financial planning—particularly in the area of tax planning. Ask the hard questions now and remember to consider that a large influx of money can have an equally disruptive impact. Ask your financial advisor to help you plan for and navigate the more difficult family conversations.
- How will inflation impact my financial situation? Inflation takes place naturally in a growing economy over time and leads to higher prices. (It’s why candy bars no longer cost a nickel.) For many who like to keep a portion of their assets in cash, inflation can erode the purchasing power of that cash over time. It’s important to be aware of the impacts of inflation over the long-term so that you and your advisor can plan ahead and preserve the “real” value of your assets through your working life and into retirement.
- What don’t I know about my financial choices? “You don’t know what you don’t know,” says Laurie Siebert, CFP®, CPA, AEP®, financial advisor at Valley National Financial Advisors and host of “Your Financial Choices” radio program. On the show, Laurie addresses listener questions that are top of mind and tries to bring awareness about the financial choices that may not be on your mind (yet). “Your Financial Choices” airs live every Wednesday from 6–7 p.m. on WDIY 88.1 FM. A searchable archive of past shows is available online at yourfinancialchoices.com.
Valley National Financial Advisors is the marketing name for Valley National Group, Inc. and its affiliates. Securities offered through Valley National Investments, Inc. - an independent broker/dealer and member FINRA and SIPC. Valley National Advisers, Inc is a Registered Investment Adviser with the U.S. Securities and Exchange Commission.
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This post is a sponsored collaboration between Valley National Financial Advisors and Lehigh Valley Style.
