Hard as it may be to believe, we have just eleven days left in 2021. Now is a good time to check in with your finances and plan any changes you might want to make next year with your trusted Fiduciary. In addition to striking the appropriate balance for you and your personal situation with your advisor, there are certain times when meetings are essential.
What is the ideal frequency with which advisors and clients should meet? Quarterly? Semi-Annually? Annually? And how often should advisors call clients? What about texting? At Johnson Wealth Income Management, our advisors will give you peace of mind when it comes to communicating to you the risks that you are taking and how that may impact your portfolio.
It’s important to note that these factors can vary widely from client to client, as there’s no one-size-fits-all when it comes to financial planning. It’s essential to meet regularly with your Fiduciary to ensure you preserve the capital you need when growing your wealth in the long run. Here’s what you need to know.
Annual Meeting
It’s important to remember that although you hire your Fiduciary as a professional to perform a specific task, your level of satisfaction will be largely based on the relationship you develop. With all relationships, expectations and communication play key roles. Many investors are busy, and some might find in-person meetings burdensome. Others feel the need to be more involved and, perhaps, reassured with more regular interactions. As mentioned above, there’s no one generic strategy for financial planning.
In addition to finding the appropriate meeting balance for you with your advisor, there are certain times when meetings are crucial. You should meet with your Fiduciary at least once a year to reassess basics such as budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.
Estate Planning
When you’re creating or making a major change to your estate plan, you should meet with your Iowa Fiduciary to make sure those plans fit in with your financial planning strategy and can help ensure your estate plan is proceeding in the right direction.
By far the most unfortunate common estate planning mistake for Iowans is not having an estate plan at all. One thing that’s unfortunately inevitable is that no one can escape death. However, thoughtful and careful planning for what may occur after your death is one of the most important financial steps to undertake. This is mainly to ensure your personal and financial affairs will be handled properly when the inevitable circumstances occur.
Effective estate planning can help you to manage your affairs during your lifetime and control the distribution of your wealth after death. An effective estate strategy can spell out your healthcare wishes and help ensure that they’re carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so.
Life Event Reassessment
From inheriting sudden wealth to proceeding in a high-asset divorce, there are many unexpected life changing events that can occur. It’s best to try and be as prepared as we can be for the inevitable; which is why a significant financial event should trigger a meeting with your financial advisor.
Your taxes, financial strategies and the structure of your portfolio can be impacted if you’re not properly prepared. Your short and long-term financial planning can also be altered by such events. Whether you welcome a child or lose your job, always contact your Fiduciary to discuss the financial implications and to create/tweak a plan to factor in such events.
Portfolio Reassessment
Whether you’re an active or hands-off investor, rebalancing your portfolio should play a key role in your long-term investment strategy. Portfolio rebalancing is a realignment of assets in your portfolio to maintain your desired investment mix based on your financial goals and risk tolerance.
If you are an investor with a large portfolio, it’s likely to be diversified in ways different from the average investor. Diversification is key for a well-performing portfolio. If you have a sneaking suspicion your portfolio isn’t well diversified, Haworth suggests talking with your financial professional about rebalancing. Similarly, if you’re curious about new or emerging investment opportunities, you might consider rebalancing your portfolio to incorporate these new assets.
If so, a quarterly review may be more appropriate than an annual one to, for example, re-evaluate underperforming assets. Again, one size does not fit all when it comes to financial advice. One way to provide an overview as to where you are with your investments is to visit our quick reality check for your portfolio.
Final Thoughts
Having a Fiduciary doesn’t mean you get to wash your hands of tending to your finances. In fact, having a financial advisor means managing a relationship with someone who holds the very important keys to your proverbial castle. Johnson Wealth and Income Management is a full-service financial firm that provides an array of services to our clients in the state of Iowa.
From tax planning to investment strategies, our commitment is to help you work towards achieving all your financial goals and to help provide you with the tools for financial planning in 2022.
For more information on Iowa Fiduciary services, please visit our website or contact us today!
All written content on this site is for informational purposes only. Opinions expressed herein are solely those of Johnson Wealth & Income Management and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. Investing involves risk. There is always the potential of losing money when you invest in securities. Asset allocation, diversification and rebalancing do not ensure a profit or help protect against loss in declining markets. All information and ideas should be discussed in detail with your individual advisor prior to implementation. The presence of this website, and the material contained within, shall in no way be construed or interpreted as a solicitation or recommendation for the purchase or sale of any security or investment strategy. In addition, the presence of this website should not be interpreted as a solicitation for Investment Advisory Services to any residents of states where otherwise legally permitted to conduct business. Fee-based financial planning and Investment Advisory Services are offered by Sound Income Strategies, LLC, an SEC Registered Investment Advisory firm. Johnson Wealth & Income Management and Sound Income Strategies LLC are not associated entities. Johnson Wealth & Income Management is a franchisee of the Retirement Income Store. The Retirement Income Store and Sound Income Strategies LLC are associated entities. © 2021 Sound Income Strategies.
