Our founder, Mark Giesting, recently joined Retirement News Online, an online outlet covering the latest topics in retirement planning, to discuss the importance of having a financial advisor.
When asked about the notion that investors should enlist in the help of an advisor only when they are able to save 20% of their income, Mark said:
We just work with what you have; we want you to get started! Although 20% might be a good target to aim for, I think what we really need to do is evaluate your current situation and the money that you have and what your goals are and what you’re trying to get accomplished, then put a plan in place and start moving forward. I know I certainly didn’t have 20% set aside when I started. I just did payroll deduction into my 401(k) and got started down a path of saving.
We don’t believe in limitations, minimums or the idea that financial advisors are only for the ultra-wealthy. Everyone has a beginning point, and with our team’s vast experience in the field, we’ve worked with investors from every background and every income level. We can put together a custom plan, no matter your situation.
Mark then moved on to discuss how advisors help with tax planning and income planning, saying:
From a tax planning standpoint, our philosophy is that you should pay your fair share and nothing more and be efficient as possible. We do believe that we’re in a very low tax environment right now, so there are definitely some moves to maybe pay some of those taxes now through Roth contributions and Roth conversions. Many people just aren’t aware of how that process works.
From an income standpoint, it’s very important to distinguish between the accumulation phase and the distribution phase. It’s interesting. A lot of retirees, when they do start the distribution phase, their mindset is still in the accumulation phase. They’re still trying to grow the money. When you’re in the distribution phase, the No. 1 goal is to try and protect it. We will set up different strategies to try and protect that money as you’re coming down the mountain, so to speak.
We believe in accumulation, but we also believe in protection, and while building and growing your portfolio is ideal, it can sometimes be more important to keep the money you’ve worked so hard to earn. We can assist with strategies to help you keep more of that money, including Roth conversions when it may be advantageous to move tax-deferred funds to tax-exempt accounts.
Mark closed with his opinion on investors who opt to take the financial journey alone, saying:
There probably are people out there who are doing fine without us. Where I think we add a lot of value is with the people who do need the help. They don’t have the time or the temperament to manage their money. Sometimes when volatile or difficult economic situations come at us unexpectedly, the cycle of emotion takes over. Sometimes emotions overshadow logic, and people can end up doing some pretty harmful things to their finances. We can keep them on track. We can coach them and give them confidence to keep moving forward.
We love when well-informed clients walk into our office, and we welcome the opportunity to join them on their financial journeys, putting our heads together in both good times and bad. If you aren’t already acutely aware of everything going on in your portfolio, we would still love to meet with you. Giesting Financial takes pride in our ability to educate and inform, and we look forward to coaching you toward a complete understanding of your holistic financial plan.
To watch the entire video featuring Mark Giesting on Retirement News Online, you can click right here.
If you’re ready to take the next step with us, please give us a call. You can reach Giesting Financial in Batesville, Indiana at 812.933.1791 or in Columbus, Indiana at 812.565.2726.
This article is for informational purposes only and not to be construed as financial or investing advice, nor is it a replacement for real-life advice based on your unique situation.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite #150, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”). Securities are offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. PCIA and Private Client Services are separate entities and are not affiliated.