Do you work with a financial professional? Or are you considering a new relationship with one? A financial professional can be a valuable addition to your planning and strategy, providing key insights and making helpful recommendations so you can reach your biggest financial goals.
 
However, it’s important that you work with the right financial professional for your needs and objectives. Not every professional is the same. Some specialize in certain needs or specific types of clients. Some may not have the qualifications or skills that are right for you.
 
What should you expect from your financial professional? And how can you know whether it’s time to consider a change?
 
Below are a few key things every client should expect from a financial professional. If you aren’t getting these out of your current relationship, it may be time to explore other options.

Transparent Compensation 

You probably know that your financial professional is compensated for providing service and advice. But do you know exactly how they are compensated?
 
There are a few ways in which financial professionals can be compensated. They could earn commissions for specific products or investments. They could charge a fee based on your asset level or the services they provide. Some professionals even charge an hourly fee based on their advice and input.
 
There’s no right or wrong answer on how your professional should be compensated. What’s more important is that yours is clear, upfront and transparent with you about compensation so you can make an informed decision on whether it’s right for you. If you’re unclear about how your professional is compensated, it may be time to have that conversation.

Proactive Approach 

How often do you hear from your financial professional? Do they proactively reach out to you? Or do you only hear from them after you’ve placed a call or sent an email?
 
An effective financial professional brings ideas and advice to the table before issues arise. They should proactively reach out to you to schedule reviews, discuss new ideas and address any concerns you may have. If your financial professional is a reactive communicator, you may want to reassess the relationship.

Comprehensive Advice 

Your financial professional shouldn’t just be someone who manages your investments or sells you insurance products. They should also be someone who can help you analyze your entire financial picture and make comprehensive planning decisions. If they only seem interested in selling you new products or investments, you may want to explore other options.
 
Want to learn how a financial professional can help you reach your biggest goals? Let’s talk about it. Contact us today at Financial Solutions Group. We can help you analyze your needs and goals and develop a strategy. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18280 - 2018/11/28

What does your estate plan look like? If you’re like most, you probably have a will directing the distribution of your assets to your heirs. You may even have a trust that provides more specific instructions. Perhaps you have end-of-life documents, such as a power of attorney or a living will.
 
But do you have a plan to gift assets to your children, grandchildren or even your favorite charities? The idea of gifting, or early inheritance, is becoming more popular. A recent Merrill Lynch study found that 60 percent of people over the age of 50 prefer to give assets away early rather than after death.1
 
Obviously, a gifting strategy can have clear benefits for your heirs and loved ones. But it can also be beneficial to you and your estate. Below are a few reasons why you may want to make gifting a part of your estate strategy:
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Family Assistance and Support 

There’s one clear benefit to giving your assets away today instead of doing so after you pass away: You get to see your heirs put your assets to work. Maybe you have a grandchild who’s been accepted to a top-tier college but can’t afford the tuition. Perhaps you have a child who has a great business idea but needs resources to make it a reality. Or maybe you just want to help your loved ones reach their biggest financial goals.
 
A traditional inheritance is always helpful to the heirs and recipients, but you don’t get to see how your legacy impacts their lives. There also may be a greater need for the resources today than there will be in the future. You can meet both of those needs by incorporating gifting into your estate plan.

Probate Issues 

Believe it or not, gifting could also potentially benefit your estate. When you pass away, your estate goes through a process called probate. This is the legal process for settling an estate, and it usually includes activities like paying debts, filing taxes, selling assets and much more.
 
Depending on the size and complexity of your estate, probate can be a lengthy and costly process. Your heirs may need to hire lawyers, accountants and others to handle many of these tasks. The distribution of your assets could be delayed for a significant amount of time.
 
When you give away assets in advance, you remove them from your estate. That means you may have fewer assets going through the probate process. That could reduce the complexity and ultimately the cost, which could help your estate pass through probate more quickly.

Important Gifting Considerations 
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Gifting isn’t always as straightforward as simply writing a check to your loved ones. There could be tax implications to your strategy, so it’s important to consult with a professional.
 
For example, the IRS taxes gifts that exceed $15,000 to any one individual in a given year. Married couples can gift as much as $30,000 to an individual in a year.2 If there’s a chance your gifts could exceed that level, you may want to develop a strategy to minimize the tax exposure.
 
Even if your gifts won’t come close to the gift tax threshold, it’s still wise to develop a plan. There may be more efficient ways to distribute your estate than simply writing checks. You may have some loved ones who need help and guidance with managing the money. It may be more effective to gift assets instead of cash. These are all decisions and choices you can make when you develop a gifting strategy with your financial professional.
 
Ready to see how an early inheritance could work as part of your estate plan? Let’s talk about it. Contact us today at Financial Solutions Group. We can help you review your needs and goals and develop a strategy. Let’s connect soon and start the conversation.
 
1https://www.ml.com/articles/why-make-your-heirs-wait.html
2https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18274 - 2018/11/27