Where can you go for investment advice? Anywhere. Everywhere.
Look in magazines, surf the Internet, turn on your television, listen to your
neighbor _ everywhere you turn, you’ll find sources of information. Some of
what you see, read or hear may be well-intentioned. Some of it may come from
“expert sources” who actually have
vested interests in the advice they are dispensing. But none of it _ the advice,
the “tips,” the predictions, the strategies
_ is tailored to you and your individual needs.
That’s why you should strongly consider putting together a financial
“team” to help you meet your goals. You
need to work with professionals who will take the time and effort to get to know
you and understand your objectives.
In putting together this type of team, where should you begin? First, keep
in mind that your financial situation contains several interrelated elements,
including investments, insurance, taxes and estate planning. Let’s look at
one simple example to illustrate the various connections among these areas.
Suppose you buy a mutual fund because you want to accumulate money
for retirement. That’s the investment component. As your mutual fund grows,
it creates taxable distributions; plus, if you sell your fund, you may have to pay
capital gains taxes. So now you have a tax issue, as well. If you hold on to
your mutual fund long enough, it will become part of your taxable estate _ which
affects your estate plans.
We’ve just reviewed the path of one uncomplicated investment. When
you think about your retirement plans, insurance policies and estate planning
arrangements, such as a will or a living trust, you can see that all these
vehicles will likely involve every piece of your overall financial picture.
To help you make sure all your financial planning arrangements are
working together, you will probably need the services of an
investment representative, a tax
professional and an estate-planning
professional, such as an attorney.
Your investment representative can help you select those investments
and investment strategies that are right for your particular needs. He or she also
may be capable of presenting you with insurance solutions.
Before choosing an investment representative, inteview several to find
out how they work, how they get paid, what their qualifications are, and how
much experience they’ve had working with people like you.
Your investment representative may know the names of good tax
professionals and estate-planning experts. These people can help you with tax and
estate-planning implications of the investments you’ve chosen. Plus, they can keep
you current on tax and estate laws, which change frequently.
Once you’ve gotten your financial team in place, use it wisely. Consult
with the individual members on moves you want to make and changes in your
family and financial situations. You may want to schedule regular reviews
with team members, either as a group or individually.
When you use your team of advisers correctly, you’ll find it’s a lot
easier to achieve your goals. In the financial world, teamwork pays off.
CHRIS BRUNTZ is an investment representative for Edward Jones
financial services. His office is located at 111 1/2 E. North Bend Way, North Bend.
He can be reached at (425) 831-5757.
