In addition to the following FAQs, we have answered a range of questions regarding estate planning, tax planning, retirement planning, risk management, and business succession under Financial Services.
1. What is financial planning?
Financial planning is the process of meeting your life goals through the proper management of your finances. The Financial Planning Process helps you to reach your goals by gaining perspective on where you are now and defining where you may want or need to be in the future. It provides direction and meaning to all your financial decisions, defining each in context with the other, how they are all part of a whole. In this way, financial planning should help you adapt more easily to life changes and keep you on track.
2. How do I know if I need the advice of a professional financial planner?
Financial matters can seem, and often are, complicated. If you are in doubt as to your ability to make the most of what you have or will have in the future, it may be time to consult a professional. Risk evaluation, retirement plan maximization, financial emergencies, estate planning, inheritance: these are a few of the many areas in which a professional financial planner could be beneficial and, at times, crucial to your long term well being. Even if you haven't any doubts about your financial planning expertise, you may simply feel that you don't have the time to devote to looking after your financial matters. When it comes to your financial affairs, it's usually worthwhile to take the view: when in doubt, ask an expert.
3. How do I know what to invest in?
Your investment decisions should be driven by your values, preferences, and specific circumstances. The basic principle of receiving more return in exchange for taking on more risk with your investments applies to a certain extent, but your overall asset allocation must be comfortable to you, and it must be appropriate to your personal situation. Your exposure to these risks can be reduced with an efficient investment portfolio and proper diversification. Of course, your risk tolerance level, investment timeframe, and present and future financial circumstances (i.e. pension, professional corporation) still figure prominently in the analysis.
For further information on investment portfolio management, click here.
4. How are financial planners paid?
Planners can be paid in many different ways including commissions on the sale of products, salary, fee-for-service on hourly rates, flat rates for specific services, or fees based on a percentage of assets or income. How you pay for the services of your planner should be discussed at the outset. It may be that your planner will offer you a choice of how he or she might be compensated depending on the services you want. However, it is very important that there is full disclosure on how he or she will be paid for the services provided.
If you have any additional questions for the professionals at JV Financial Group, please email us. We look forward to the opportunity to help.
