By Kyle Louvar, CFP®, AIF®
Are you procrastinating when it comes to organizing your finances? You’re not alone. Whether it’s insurance planning, putting together an estate plan, or figuring out withdrawal strategies, most people don’t put financial planning at the top of their to-do lists because it can feel overwhelming and, at times, complicated.
But that doesn’t mean it shouldn’t be done. And, procrastinating further can even be costly—in time, energy, and money. If you’ve been putting off financial planning, consider these reasons why you should get started now:
1. You Don’t Know Where Your Money Is Going
Between auto-billed subscriptions and the ease of using credit cards, it’s easy to lose track of your spending without even knowing it. Remember, just as your savings compound year after year, additional expenses compound and can end up eating away at your opportunities to save.
Working with a financial advisor will give you a clear picture of how much you’re spending each year and where your money is going. And, often, when you take the time to look closely at the numbers, you become more intentional with your expenditures and saving habits.
2. You Might Be Missing Out on Employee Benefits
Unless you are self-employed, you likely have access to an employee benefits package that offers a variety of financial, health, and insurance benefits. In order to use these benefits to their fullest potential, you’ll want to consult with a financial advisor to make sure you’re doing things like utilizing health savings accounts, considering short- and long-term disability coverage, taking advantage of any 401(k) match your company may offer, and making sure you have the appropriate amount and type of life insurance to financially provide for your family if an unforeseen event should occur.
3. Tax Strategies Take Multiple Years to Implement
Another reason not to put off financial planning is that if you don’t start early, you’ll miss out on several tax strategies that take years to implement, including tax-advantaged retirement savings, Roth conversions, and withdrawal strategies.
For example, if you’re in a high tax bracket, being able to save for retirement with pre-tax dollars is a great advantage because pre-tax contributions reduce your taxable income and, ultimately, reduce the amount of taxes you owe. This strategy could save you thousands of dollars in taxes each year.
To properly implement these types of strategies, a long-term understanding of your full financial picture is required. Working with a financial advisor ahead of retirement can help you avoid unnecessarily large tax bills.
4. Financial Planning Can Alleviate Stress
When it comes to financial planning, most people simply want to have peace of mind—knowing that they are on track to achieve their goals and retire comfortably. We believe peace of mind is knowing you have a solid financial plan for your lifetime, and that you’re able to track and monitor your investment progress. Imagine the level of confidence and comfort of being able to look at your financial plan and investments, even during volatile markets, and know that you are still on track to achieving your goals.
A solid process of financial planning and benchmarking investment progress can help reduce the stress that comes from not knowing where you stand or how you’ll achieve your goals. With the right help, you can spend more of your time doing what matters most to you.
Get Started Today
The sooner you start the planning process, the sooner you will know how much you need and what you need to do. If you have long-term financial goals like buying a house or saving for retirement, working with a financial professional is one of the best things you can do to set yourself up for success. Don’t leave your most important goals and priorities to chance.
At Guided Capital Wealth Management, our proprietary Paradigm FORMula helps determine your appropriate investment strategy and benchmark your progress to your customized financial plan, so that you can feel confident in your financial future. Schedule a FIT meeting using our online calendar or contact us at (832) 975-0711 or firstname.lastname@example.org to learn if we are the right team to guide you on your financial journey.
Kyle Louvar is the CEO and Wealth Management Advisor for Guided Capital Wealth Management, a fiduciary financial advisory firm offering fee-based advice, guidance, and education. After seeing the impact that the 2008 financial crisis had on families, Kyle became fully committed to helping his clients develop a financial plan that changes as their lives unfold and their needs evolve. Spending nine years working for one of the largest brokerage firms on Wall Street, Kyle holds a high value for process, expertise, objective advice, and customized solutions. His goal is to help his clients experience confidence in their financial future through a disciplined process of financial planning, investment management, and sound financial decision-making.
Kyle graduated from New Mexico State University, where he was a proud 4-year letterman in football for the Aggies and where he’s sat as a board member since 2015. Kyle holds the CERTIFIED FINANCIAL PLANNER™ and Accredited Investment Fiduciary® (AIF®) certifications. When not helping his clients, Kyle enjoys spending time with his wife, Nicole, and their two daughters. You can often find him coaching his daughters’ softball teams, playing golf, cooking, and traveling. To learn more about Kyle, connect with him on LinkedIn.