What is the Usefulness of Employing the Services of a Personal Financial Planner?
Is it really necessary to appoint a personal financial planner? What services do financial planners provide? These are the questions we will be trying to find answers for in the following sections. In general, services of a personal financial planner can prove to be quite useful for you in several ways. Let us go through the details in following sections.
What is the usefulness of using services of a financial planner?
• Giving Money to Children & Tax Implications
• Conduct Proper Estate Planning
• Evaluate Possibility of Refinancing a Loan or Mortgage
• Utilizing Social Security Benefits
Giving Money to Children
Proper planning is necessary if you want to transfer wealth to your children. Moreover, it will be important to understand tax rules so that money can be transferred to kids in a tax efficient manner. Let us look at an example to illustrate this fact.
Suppose you give $30,000 to your kid in cash so that he can pay tuition fees. If not planned properly, it will make it necessary for you to submit gift tax return.
By consulting a personal financial planner you can avoid this situation. A financial planner will generally suggest that you write a check to college or both parents pay half of the cash to avoid need of filing returns.Thus, with proper plan in place you can find solution for difficult financial situations with relative ease.
Estate planning is not just for the rich, common people can also benefit from estate planning. Here, services of a personal financial planner can turn out to be quite useful. Few of the details a planner can look into are:
• Keeping track of beneficiaries of the client.
• Examine details of people who are designated as guardians for any children.
• Whether there is a power of attorney appointed and a will in place in case parents experience any health issue or meet with an accident?
Possibility of Refinancing a Loan or Mortgage
Personal financial planner also has to analyze feasibility of refinancing any mortgages or auto loans you have taken. Your planner has to consider the upfront cost for such refinancing, and decide whether it will be a cost effective solution for you.
To accomplish this task, your personal financial planner will examine current rates for refinancing and recommend it if refinancing will be profitable for you and help in reducing your tax burden.
Social Security Benefits
Personal financial planners also have required expertise to guide you about the right time to take social security benefits. The right advice at the right time will help reduce the confusion many investors have, and utilize the social security benefits at the right time.
A Final Note
We can conclude here by saying that a personal financial planner has an important role to play in helping you take right financial decisions in every stage of your life. By utilizing advice provided by a planner you can achieve your financial goals in a much better way while bearing least amount of risk.