It’s Financial Planning Month! As we shift into the last few months of the year, it is a great time to assess your current financial plan, see if there are any adjustments that need to be made to help hit your goals, and set budgets ahead of the holiday season.
Our team has compiled the top questions we receive to help empower you with information as you review your unique financial situation. If you’d like to tackle financial planning alongside our expert team, please give us a call!
Top Questions
- Do I have enough to retire?
Every person’s retirement and current financial situation is different. However, here’s what we can tell you. Plan out what your retirement looks like. Does it include multiple trips each year? How much does that typically cost right now? Does it look like moving to a different city or state? Do your yearly expenses stay the same as they are now, or do you anticipate that they’ll decrease? Once you’ve identified these main pillars, we can help you track against your current financial standing and how to get you where you want to go.
- With the market right now, am I invested too aggressively, or should I be changing my investments to match the market?
While the market may see daily or weekly fluctuations, it is critical to keep your long-term goals in mind. If you want more insights into what you are invested in and the level of risk you are comfortable with, we highly recommend connecting with our financial advisors. We can be your trusted expert that you call during market fluctuations to help provide that larger context. There are always areas that can be fluid, but ensuring you are comfortable with the level of risk is paramount.
- How does the Federal Reserve affect my retirement?
This is a great question! The Federal Reserve (or commonly known as the Fed) is the central bank of the United States and is responsible for managing the nation’s monetary supply, setting interest rates, and regulating the financial markets. When the Fed increases or decreases interest rates, it affects how expensive it is to borrow money for your banking institution. In the simplest terms: when interest rates go down, businesses and households are more willing to purchase goods and services because it is cheaper to borrow. When rates go up, businesses and households hold off on big purchases because it is more expensive to borrow.
Overall, when the Fed lowers interest rates, borrowing money becomes cheaper. This can aid businesses looking to expand and encourages consumer spending.
Historically, when the Fed reduces interest rates, it provides a boost in the stock markets because businesses and consumers are more willing to spend money.* What this means for your retirement depends on your overall financial plan. But ultimately, it’s important tobe knowledgeable about what affects the market and how it could play a role in your future.
- Why do I need insurance in my financial plan?
You work very hard to provide for your family and plan for your long-term goals including your retirement, potentially leaving a legacy for your children and supporting education opportunities. Insurance helps protect all your assets and the hard work it took to achieve them in case something should happen to you. The right level of insurance will help ensure you and your loved ones can maintain your quality of life if you or family member receives a life-changing diagnosis, has an unexpected medical event and can no longer work, or if there is a catastrophic event with an asset like a home. Our team can evaluate your needs and recommend the right level of insurance for you.
If you’d like to assess your financial plan together, please reach out to our team.
Reference:
*https://www.investopedia.com/articles/stocks/09/how-interest-rates-affect-markets.asp#:~:text=When%20the%20Federal%20Reserve%20changes,and%20can%20boost%20stock%20prices.