December 5, 2020
As a financial advisor, sometimes the best advice I can give someone is to go seek advice and services from someone else. It’s important for financial professionals to recognize when another professional might be in a better position to provide their clients with what they need. In my last article, I explained when to get financial advice from a trusted professional. In this follow-up article, I will share what kind of advice or services can have the most impact on your financial security and success. To help put some context to these examples, I’ll categorize individuals into two categories: individuals who have jobs with an employer and self-employed individuals..
Employed individuals usually have the benefit of simplicity when it comes to their income sources, tax situation and often have group insurance and retirement plans offered by their employer. For these reasons, many people in this situation don’t think they need much advice to succeed, however they are likely wrong to assume this. Beyond traditional financial advice to reduce debt and build up a nest egg, if employed individuals have a spouse or children, it would be important to get personal insurance advice from a trusted licensed insurance professional to make sure that the coverage in place reflects their wants and needs. It’s also important to consider having a will and power of attorney drafted by a competent lawyer. These are essential documents that provide care and financial instructions for yourself or your loved ones should you unexpectedly be unable to do so. Even without the complexities of running a business, it’s still worth considering the help of a competent tax professional when filing your taxes to be sure you claim all the expenses and credits you’re entitled to. A good accountant can often save you more in taxes than it cost for their services.
Business owners and self-employed individuals don’t have the luxury of a simpler financial situation however they can often benefit in many other ways with proper planning. Competent accountants, tax professionals, lawyers and other financial professionals are essential to a business owner’s success. The advice of accountants and tax experts can help business owners and self-employed individuals from the beginning of their journey by helping determine whether or not they should incorporate, how they should pay themselves and how to manage certain assets, debt and expenses. Lawyers are also valuable to most business owners, by helping to properly establish corporations and trusts, and represent you through negotiations to protect your interests. Without group insurance and retirement plans to support them, business owners often need to work with a financial advisor who is licensed and competent in both insurance and investments to ensure there are no gaps in their financial security and a solid plan is in place to facilitate retirement at the end of their business journey.
As you can see, employed individuals, self-employed individuals and business owners all need help from advisors and professionals for various reasons. As I mentioned in my previous article, I don’t think delaying your relationship with these advisors is beneficial in most cases. The earlier you develop these relationships and have these professionals on your side, the more likely you are to see the benefits of their services compound over time.
This writing is for general information purposes only and is not intended to provide legal, accounting, tax or personalized financial advice. If you are not sure how to proceed with a request for further information, seek help from a professional. Any opinions expressed are my own and may not necessarily reflect those of Louisbourg Investments.
Author:
Marcel LeBlanc, CFP®, CIM® is a Financial Planner with Louisbourg Investments. You can find more from him on Facebook and LinkedIn. Comments or questions may be submitted to Marcel at marcel.leblanc@louisbourg.net, or he may be reached at (506) 383-5204.