In order to systematically get your financial affairs in order for the present and for the future, it is advisable to consider working with a Newport Beach Financial Advisor. When you work with someone in this capacity who is trained and credentialed, you can work with the assurance that you will be in good hands with someone who really knows what they are doing.
Financial advisors are more than just product peddlers, and in fact, you will best be served to work with someone who works on a fee only basis, and in that way there will be no conflict of interest when you do purchase products. You will want products that are the best in their field, and if an advisor is getting a commission on the products, they may or may not be in your best interest.
In essence, your Newport Beach financial advisor will help you to create an overall plan, perhaps based upon a timeline in order to project future needs for education of children, specific financial goals, and for retirement.
These are what can be termed as major goals, but there are also financial needs that can be interspersed along with the major ones. You might want to have a vacation home in the mountains, or have the means to travel, and planning is the key to seeing if these objectives are possible, practical, and attainable.
The first step is usually the creation of a detailed budget. If you have short term debt, you need to decide how to handle that. There are several schools of thought on that, but it is a fact that your debt service is money that could be invested, but you are spending it on payments. In most cases, getting the debt paid down quickly is going to get the best results for the long term.
Then the plan will have you allocating specific sums of money for education, dreams and retirement. Practical projections can be made insofar as how much must be set aside at attainable rates of return in order to meet your goals.
The thing that a good financial broker will do is to help you make the projections, and then advise you on what vehicles can be used to fund those projections. Whether it is stocks, bonds, ETF’s (exchange traded funds) or other vehicles, you will meet with your advisor on a timely basis to make adjustments in your plan.