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Benefits of Working With a Financial Planner

Written By: MB Group

You've worked hard to build a nest egg and enjoy some of the finer things in life. It only makes sense to chart the best path forward under the seasoned advice and guidance of financial planning. No matter your age or net worth, financial planning will help you see the big picture and develop feasible short-term and life-long goals. Just as you use GPS-enabled navigation to go from point A to point B, financial planning services can help you achieve your goals with a superior peace of mind. Let's take a closer look at a few of the top benefits of working with a financial planner.

A Tailored Investment Strategy

If you've ever attempted to invest on your own, you know the difficulty of the task. Much of the challenge financial planningcenters around diversifying your portfolio. Failure to properly diversify your portfolio can leave you subject to potentially large losses. For instance, if you invest the majority of your financial resources in a company or individual sector, you're betting on the companies to perform well over the long haul. Unfortunately, this isn't always the case. 

Diversification helps you avoid the rampant effects of natural market volatility. By working with a financial planner, you'll be more likely to have a diversified portfolio built to withstand the volatility of the market. And the importance of diversification couldn't be more transparent than today amid the COVID-19 pandemic. To put it frankly, the market has taken a beating. But those who have properly diversified under the guidance of financial planners are more likely to weather the storm and come out on the other side in a better position.

Manage Tax Liability

Whether you're a business owner or have inherited money, the goal is to keep as much of your hard-earned money as possible. And to best achieve this goal, it's critical to partner with a financial planner for strategic tax planning benefits. One common tax planning strategy used by financial planners is to store savings in a traditional individual retirement account or a 401(k). In addition, a financial planner can open the door to highly-complex strategies to help you reduce your overall tax liability— regardless of your situation.

One common strategy used by financial planners is to max out HSA contributions. In 2019, an individual could put up to $3,500 into the HSA with pre-tax funds. This means that someone in the 32% tax bracket could've saved a total of $1,120 in taxes by strategically saving for health care expenses. If you're a small business owner, a financial planner can help you explore Simple IRAs, Solo 401(k)s, and other options that may be available to help you increase your savings and minimize your tax liability. 

Feel Good About Your Future 

One of the most understated benefits of working with a financial planner is the intrinsic financial confidence that only comes from having a well-thought-out plan. The overarching goal of the financial planning process is to help bring your goals and vision of the future into clearer focus. And to do so, you and your financial planner will talk openly about finances. These candid discussions will offer exceptional clarity about the actions you should take today to make progress. Whether it's debt payoff, savings, or investing; a financial planner can help define the necessary steps you should take today to move closer to your vision of tomorrow.  

Remove Emotions to Make Intellectual Decision

In times of geopolitical change or market volatility, many people fall victim to making rash, emotional financial decisions. For instance, many people look to buy the stock when the market is overvalued. And even a greater number of retail investors tend to get caught up in FOMO, which compels them to buy and sell when they shouldn't. However, when you work with a financial planner, they will remove the emotion out of these complex decisions. Instead, your financial planner will help you stay focused on your financial goals and remain the course.

Contact MB Group for Financial Planning Services

Contact us today to learn more about financial planning services for high net worth individuals and business owners. 



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