Knowledge is priceless
If you work with a financial advisor, a CPA, and an estate attorney, then your finances and assets are being looked after; right? It’s their responsibility to know everything to protect your money and reduce financial risks; right?
You hired these professionals to consult with you on the best strategies to grow, manage, and protect your assets. This makes you their ‘boss.’ Just like running a business, you need to know what your management team is doing. Regular meetings and frequent communicate keeps everyone up-to-date and refines the processes to protect your interests to achieve your financial goals and retirement funds.
Risks to your IRA
Planning and managing your IRA is essentially about maximizing the opportunities of reaching your financial goals and reducing the risks that can be a life-changer. Risks can appear in all shapes and sizes such as job loss, costly health crises, an unexpected death, and even living longer than expected.
Here are ways to reduce your risks.
Portfolio Threats – Help offset market and economic risks to your IRA portfolio through proper asset allocation, diversification and hedging.
Job Threats – Many people experienced job loss during the last recession. IRA funds are often needed to cover living expenses. Help offset costs and withdrawing from your IRA by setting aside enough emergency cash to cover expenses until employment is secured. There are financial consequences to withdrawing from an IRA if you have not reached the age of 59 ½.
Health Threats – By having health care disability and long-term care insurance in place, you can dramatically reduce your risk of having to use your IRA assets.
Legacy Threats – Offset the risk that your death will leave your family without adequate income or that your heirs will not inherit what you intended by planning with sufficient life insurance.
Tax Threats – The risk that your estate will owe more than necessary when you die in estate and income taxes is offset through strategic estate and tax planning.
As you can see, there are a lot of factors to consider as you determine your long-term financial goals. What are the best ways to achieve your financial goals, manage your assets, and how to protect them? You owe it to yourself and your loved ones to seek the advice of financial experts. Remember; just keep your finger on the pulse and keep communication lines open for regular reviews of your accounts.