The year 2020 caught everyone by surprise. Many would lose their jobs, some their livelihoods, others their property and long fought-for restaurants, bars, and other businesses. Others might have been touched in a more immediate way by the virus itself and seen a loved one or close friend affected.
There are many things that society is learning about what really matters and the importance of taking care of ourselves and our families. Aside from many other things, we learned some valuable lessons about the importance of financial planning and how proper preparedness can save you in a crisis.
Biel Fisette Iacono provides financial advising services that help people and business owners think about their money and assets. Financial planning is not about money, so much as it is about life’s goals and obtaining the objectives that each person or business sets out to accomplish. Money is simply the catalyst and a force of nature that we all must contend with.
The Origins of Financial Advisors and Why They Matter Today
Financial planning is a relatively new profession. In fact, the profession did not really exist fifty years ago. Over the decades it has expanded and developed into a service that helps people manage wealth and plan for their future. Financial planning is about life goals. It is structured in a way that helps people achieve those life goals through a sound and achievable financial plan. The need for the profession arose organically out of a very real need to help people find financial stability. There is an entrepreneurial spirit behind the profession, as early financial advisers have found that the need for their services arose from a substantial need.
A Few Areas of Financial Planning to Consider
Many things can happen and go wrong during a global pandemic. Many of these changes were things many of us were not prepared for. According to Forbes magazine, the virus taught all of us a thing or two about the power of financial planning.
Finances. The idea behind financial planning is to ensure that you are setting yourself up to be in a good position come retirement or in case anything unprecedented emerges. Many financial planners will help stress-test your current plan and see where it can be improved or expanded.
Documentation. During the pandemic, many people came to realize that they did not have the necessary legal documents that would dictate their estate planning, assets, or money and where it would go in case of their passing. This is a worrisome proposition, as many people might not think about these eventualities and neglect to leave things set up for their families. These legal documents include the power of attorney or medical advance directive.
Protective Measures. Setting up protective safety nets that safeguard your assets and accounts. Other provisions that serve as protective measures can include insurance.
Questions You Can Ask Yourself and Assess Your Level of Preparedness
- Am I capable of funding a 20+ year retirement?
- Are my family, financial institutions, and medical providers informed of who will make decisions on my behalf if needed?
- Have I discussed my financial planning with my family?
It can seem more difficult to plan for retirement during a global pandemic. At the same time, this might be a good time to take a moment, slow things down, and really work out the long-term goals that you, your family, and/or your business are hoping to accomplish.
A Few Tips On Getting To Where You Want to Go
Financial planning takes time and is not accomplished or done overnight. So, as the smoke clears and the uncertainty starts to wane a little, how do you get back on your feet and work your way towards a sound financial plan?
- Start now. Even if the pandemic did not dissipate your personal finances, procrastinating on your financial planning can be harmful in the future. The longer you wait, the more you might be losing out on.
- Develop a financial understanding. Part of the reason you don’t want to postpone your financial planning is simple. As you begin the process, you begin to learn and understand. This takes time. And knowing more about what you need or what you’re looking for will only benefit you in the long run.
- Begin a clear path to your goals. Financial goals are not reached overnight, particularly if you’re looking at building wealth for your future or retirement. The best way to reach those goals is to have clear paths that will get you there.
- Don’t overlook the rainy day fund. The pandemic certainly taught many people that having a rainy day fund is quite important. Nobody really knows what’s going to happen in the future and there can be events that take us by surprise and turn our lives upside down in a moment. One way to protect yourself against that is by building some easily accessed funds for your rainy day.
Get Sound Financial Advising and Make Your Way Towards Your Ideal Future
Here at Biel Fisette Iacono, we work with people from all walks of life. Due to our vast experience, we have helped business owners from a variety of industries to work out and plan out their financial futures. A business relies on solid planning and smart financial choices. We are here to help. Call us today and ask about how we can help you reach your business goals.