4 Ways to Best Utilize Your Financial Advisor

What is the value of a financial advisor? The personal touch. Here are four stories of how flesh-and-blood advisors you meet in person (that’s opposed to a robo advisor, where your contact is digital or over a phone line) benefited their clients. These good advisors helped clients to overcome emotionally based decisions, stop them from making mistakes, figure out whether to make a big purchase and decipher arcane retirement plans. We’ll have separate articles throughout the summer describing in greater detail how they helped their clients. Planning is so very vital for your future. According to a study by insurer Northwestern Mutual, a large majority (72%) of U.S. adults believes that the economy will suffer future crises. But two-thirds of them don’t have a financial plan. Plans are not static. Once you have a plan in hand, ongoing contact with your advisor is vital to make the plan work. In …

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10 Tips for Small Business Owners

Small businesses owners should conduct an annual assessment of their personal finances. Owners of small businesses have much the same concerns as everyone else, except they are personally responsible for the fortunes of their enterprise. In a sense, a small business is like a family. And these are important families in American economic life. After all, small business is vital to the U.S. economy, employing half of private-sector workers and creating two-thirds of net new jobs, according to federal data. Here are 10 tips to follow in weighing a small business owner’s financial plan: 1. Budget/Saving. The general financial planning rule is that you should save AT LEAST 10% of your income on an annual basis. You should also review short-term and long-term goals to ensure you are saving enough to meet your objectives. 2. Maximize Contributions to Retirement Plans. Depending on the size of the company and number of …

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Assessing Business Risks

Business insurance and risk management programs are designed to help reduce and control costs. In assessing the risk exposures particular to your business, consider what can go wrong and how such events might affect your business. Risk exposures generally fall into three categories: direct and indirect property losses; loss of income attributable to property losses; and liability losses of a general, statutory, or contractual nature. Renewing policies without re-examining risk exposures may prove costly. For example, if a business has grown, coverage limits that were adequate at one time may not meet current requirements. Furthermore, changes in the nature of your business may mean that additional coverage is needed. Enlist both management and employee input when evaluating your business. Daily familiarity with specific areas of operation may make one person aware of potential risk exposures that may seem insignificant to someone with a different perspective. Also, examining past loss patterns …

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