There are many obvious benefits to sitting down with an advisor and developing a comprehensive financial plan. A plan can serve as a useful framework for better decision making and ensure that you are on the right track to achieving your goals whatever they may be. However, here are a few additional benefits that you may not have considered:
Get Organized! Most financial planners require new clients to complete an initial questionnaire and gather all documents pertaining to their financial lives: account statements, employer benefits, tax returns, estate documents, etc. During this process, you will inevitably end up much more organized than when you began.
Planning Fees are Tax Deductible. Your planning fee is an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of adjusted gross income on your personal income tax return.
Building a Relationship. Should future planning needs arise, it is nice to already have an established relationship with an advisor you trust. Especially if your need is unexpected or time sensitive, you won’t have to take time searching for a new advisor to start working. Your advisor will be available to you to address your needs over time, large or small.
Referrals. Not only are you building a relationship with a financial advisor, but they can also offer valuable referrals to a knowledgeable insurance agent, tax professional or an estate planning attorney if needed. Fee-only advisors receive no commission of any kind from these types of referrals, so any conflict of interest is removed.
Peace of Mind. Financial planning involves a great deal of factors and it can be difficult and overwhelming for anyone to figure out on their own. You can take comfort in fully understanding your current financial situation and what you need to do to achieve your goals and objectives, both short and long term.
