Monday, July 2, 2012

Coordinate Financial Planning and Insurance Products For Best Results

Despite all of our advances in technology and financial instruments the fact is many Americans will still fall short when planning for retirement. And while there are many factors which contribute to this, a major part of the problem is that many people fail to coordinate their investment plans with their insurance programs.
Perhaps the biggest reason that these 2 important elements are not planned properly is that many people traditionally find investment advice from one source and get insurance advice somewhere else. However, the best way to achieve your retirement goals is to make sure that your financial planning carefully considers your insurance needs so that each asset can help and protect the other as it grows.
Coordinating Finances and Insurance
While the idea of coordinated planning seems simple enough the real question is where will you get your advice? If you happen to have a separate insurance agent and financial planner you probably already understand the issue. Each profession tends to seek financial solutions within the group of products that they are authorized to sell or comfortable supporting. Making a decision about whose advice makes more sense can be very difficult, especially for people who don't keep a close eye on financial information.
Adding to the confusion is the recent trend of service providers which are "crossing over" in an attempt to offer more and more of these services. Even the large, national companies have begun offering a broader range of services - from mortgages and investing to insurance to tax planning.

That's why today, more than ever, it's important to find an advisor who truly understands and has experience with both disciplines to ensure you are getting sound advice and planning. We recommend finding a financial planner who has experience working with both finance and insurance and can give you a well thought out plan with options that make you comfortable.
Holistic Planning Ensures Good Decisions
The fact is that the decision factors for both insurance and investing are very similar - things such as risk tolerance, income, age, health, family situation and current savings levels - all have dramatic impact on the right type of vehicle you choose for your finances.
Identifying fixed costs and desired expenses is an important start to putting together a retirement budget. Aspiring retirees should remember to consider rising health-care costs, insurance, housing, utilities and transportation when creating a financial plan. Additional variables such as risk tolerance, age and lifestyle goals should also be considered.
Insurance planning takes into consideration many of these same issues. Finding the right mix of term and whole life or even business insurance takes careful planning and consideration. And the costs and benefits of each type of strategy should always be considered right alongside your overall financial plan. Taking this "holistic" approach will help to avoid allocating your assets in the wrong places as well as protect your investments that you have worked so hard for.