Frequently Asked Questions

• What are the advantages of working with a fee-only advisory firm?
• What are the advantages to working with a network of professionals?
• Why should I work with a Certified Financial Planner (CFP)?
• Do I have enough money to retire?
• When should I begin drawing Social Security?
• What are the advantages of consolidating my retirement accounts?
• Should I have a living trust or a testamentary will?
• How can I ensure I leave a lasting legacy?
• What is the best approach to charitable gifting?
• Do I really need long-term care insurance?

What are the advantages of working with a fee-only advisory firm?
When selecting a financial advisor, there are a number of factors that must be taken into consideration, including expertise, integrity, experience and compatibility. When looking for unbiased, ethical financial advice, the question of how that advisor is compensated cannot be overlooked.

Financial Insights is a fee-only advisor. Instead of accepting commissions, referral fees or other such compensation that can reduce the return on investments and influence investment recommendations, Financial Insights is compensated through client fees. This helps avoid any potential conflict of interest and aids in providing objective advice and portfolio management services.  

The deductibility of investment management fees for ongoing advisory services often is an advantage overlooked by investors. Investment management fees, unlike brokerage fees, are considered a “below-the-line” miscellaneous expense and may be tax deductible.

Financial Insights’ team of professional advisors works alongside clients to achieve only the goals of the client. The firm believes its success is measured by the success of the client.

What are the advantages to working with a network of professionals?
Life can get complicated. Determining who to turn to for guidance in any given situation may at times seem overwhelming. Whether planning for stability in ones elder years, selling an existing home or purchasing a dream home, creating a legacy and estate plan, addressing complicated tax issues or preparing for a life transition, receiving advice from a trusted professional is crucial and can make all the difference in achieving a successful outcome.

In addition to the diverse services Financial Insights offers as an advisory firm, it also has developed a network of professionals that includes CPAs, estate and tax planning attorneys, elder care solution providers, real estate professionals, estate transition specialists and career planning professionals. The network is made up of trusted, knowledgeable and conscientious professionals who for a number of years have worked side by side with the advisors at Financial Insights.

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Why should I work with a Certified Financial Planner (CFP)?
When seeking a financial advisor, clients have the right to demand a qualified professional and a high standard of ethical conduct. Advisors certified by the Certified Financial Planner Board of Standards meet both criteria. Anyone can call himself or herself a “financial planner” but only those who have fulfilled the certification and renewal requirements of the CFP board can use its certification marks.

The CFP certification marks identify those financial planners who are dedicated to a high level of professionalism and who have met education, examination and experience requirements to provide comprehensive financial planning services. It also helps identify those who are committed to high standards of ethical conduct and signals that a financial planner has voluntarily submitted to the regulatory authority of the CFP board.

The Certified Financial Planners (CFPs) at Financial Insights are trusted, knowledgeable and experienced professionals. They are dedicated to providing current, relevant and conscientious advice that addresses the unique financial situation of each client.

Do I have enough money to retire?
Determining how much money one will need to retire can be daunting. The amount of funds required to live a comfortable lifestyle during retirement years often is higher than most realize. Diligence in saving for retirement and receiving and following the right advice can be crucial in determining whether post-retirement funds will adequately last throughout one’s retirement years.

Financial Insights’ professional advisors are adept at the retirement planning process, including the necessary calculations to aid in the determination of when a client may afford to retire and the probability of retirement funds sustaining a desired lifestyle for the remainder of the client’s life.

Numerous factors are taken into consideration during the retirement planning process. Desired retirement age, projected expenses, expected inflation, current annual income, current retirement savings and estimated pre- and post-retirement investment returns are just some of the factors used to produce a retirement assumption. Goals and projections are re-evaluated on an ongoing basis because changes in economic climate, inflation, achievable returns and one’s personal situation can impact a plan.

Financial Insights’ highly experienced retirement team understands the importance of a client’s retirement goals, the uniqueness of individual circumstances and the value of one’s dreams. The team is passionate about providing advice and guidance that is realistic – and relevant – throughout the client’s retirement discovery process.

What are the advantages of consolidating my retirement accounts?
More than ever, it’s commonplace for Americans to work for several companies over the course of their careers. As a result, they may have several different employer-sponsored retirement plans such as 401k(s), 401a(s), 403b(s) and 457(s). In retirement, these plans may become one of the most significant sources of income.

A rollover IRA may be the best solution to consolidate multiple retirement accounts and can help to streamline portfolio planning and simplify account management and distribution decisions. Consolidating retirement accounts into one IRA also provides a number of other benefits. It grants more flexibility and investment options, because IRAs are self-directed investment accounts. Monitoring, managing and diversifying the investments become easier and may even reduce trading costs and fees. Consolidated retirement accounts offer a single source of income during retirement years and add ease to the Required Minimum Distribution (RMD) process that begins at age 70½. IRAs offer robust estate planning features and allow beneficiaries to extend the benefits of tax-deferred investment compounding over their lifetimes rather than taking a lump sum cash payment as required with employer-sponsored plans.

Many people can benefit by combining retirement accounts into a single IRA. However, in certain situations consolidating may not be the best solution or even possible. The regulations and nuances surrounding employer plans can differ greatly and the plans’ complexities often only are understood by a professional advisor. Financial Insights’ professional team of financial advisors is highly experienced and knowledgeable in helping clients make the right choices at this critical stage of life.

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When should I begin drawing Social Security?
When someone becomes eligible for early Social Security benefits at age 62, they must decide between taking a monthly Social Security benefit check then, at full retirement age (FRA) – which is based on date of birth – at age 70, or anywhere in between. There are several factors involved in this decision and situations need to be looked at individually. A client’s age, tax bracket, earned income, employment status, family history, longevity and more should be factored into the calculation.

Financial Insights’ team of skilled professionals are equipped with the expertise and knowledge required to advise clients on important decisions regarding Social Security benefits and other retirement issues.

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What is the best approach to charitable gifting?
A hallmark of the American way of life is the propensity to voluntarily share prosperity with others. While philanthropy certainly motivates giving, so do the personal financial benefits that accompany it. As an essential part of a financial plan, charitable gifting not only grants the personal rewards of giving and the ability to select the charity that will benefit from the gift, but it also grants the tax advantage of a charitable deduction, which lowers one’s taxable income.

The strategy of gifting appreciated property, such as stocks or mutual funds, directly to charity brings the additional benefit of avoiding capital gains tax that would have to be paid had the property been sold and a gift of cash made instead. There also are tax advantages of giving tangible personal property if the gift is related to the purpose of the charity, such as giving a collection of books to the public library or artwork to a local public museum.

Financial Insights’ professional advisors are adept at formulating gifting strategies that enable clients to take advantage of available tax incentives and other benefits. Through careful evaluation, advice is given based upon individual needs and circumstances. The team works diligently to facilitate the gifting process through the preparation and processing of necessary documents and by closely monitoring the transfer of assets.

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Should I have a living trust or a testamentary will?
There are numerous factors to consider when preparing an estate plan. The most common estate planning instruments are wills and living trusts. A will is a document that lists how one would like their estate and affairs handled upon their death. With a will, an estate must pass through probate after death. A living trust also details how one would like their estate and affairs handled after death. However, with a living trust it’s not required to submit to the probate process.

The determination of whether to choose a living trust or a will depends on a number of factors. The value and type of assets need to be taken into consideration. Those may include owning property in multiple states, current and future income, distribution desires, one’s mental and physical condition, providing for someone with special needs, providing for a charity, leaving a legacy and other objectives. In general, the main advantages of having a living trust instead of a simple will include minimizing probate, tax planning, protecting assets, privacy, flexibility and facilitating special circumstances.

Another estate planning issue involves the designation of beneficiaries on annuities, insurance policies, and retirement accounts. Naming individuals such as a spouse, children or grandchildren, a charitable organization, an estate, or a living trust can greatly impact the tax consequences of the inherited assets and whether they are subject to probate.

Estate planning needs are unique to each individual and should be addressed as such. One size does not fit all. An estate plan is only successful in carrying out the wishes of the client when designed and implemented correctly.

Financial Insights has a network of highly experienced professionals to help coordinate and orchestrate the estate planning process. Estate planning attorneys, CPAs and professional financial advisors team together to design optimal estate plans that effectively accomplish the clients’ wishes and bring peace of mind.

How can I ensure I leave a lasting legacy?
Legacy planning goes well beyond estate planning. Traditional estate planning addresses assets of financial value while legacy planning recognizes that people are much more than the material wealth they have acquired. A legacy is the emotional inheritance that may be passed on to future generations – the sum total of life experience that is evidenced by the values by which one lived – values such as hard work, community, faith, philanthropy and honesty.

A legacy that can truly influence the lives of loved ones is far more powerful – and ultimately more meaningful – than money alone. Legacy planning can provide a means to pass on the values, virtues and ethics of a life lived, as well as the transfer of financial wealth. The accomplishment of passing on wealth to loved ones and charitable organizations may be achieved through numerous available options, such as charitable remainder trusts, life insurance trusts, and charitable endowment funds, to name a few.  Legacy planning involves creative thinking, orchestration and implementation that often require the assistance of a skilled professional.

Financial Insights understands the significance of a legacy that honors a life. The firm’s highly skilled team aids clients in creating a personal legacy plan that will innovatively facilitate the client’s unique wishes – a plan that promotes and carries on their dreams, values and aspirations to future generations.

Do I really need long-term care insurance?
Most people purchase health insurance as well as insurance for their homes, autos and other possessions. However, they often neglect to purchase long-term care insurance because there is the misconception or the hope that sufficient savings are in place to sustain the financial costs associated with an illness. Reality is, a lifetime of savings can be depleted within a few short years when meeting the financial burden of professional long-term care.

Like other services covered by insurance, long-term care insurance must be purchased by the insured before he or she requires the services covered under the policy. The cost of long-term care insurance usually is determined by factors such as the type of policy, the age of the insured and the time period the policy covers. The cost of the policy also may be affected by the preferred location of service — whether at home, a nursing home or another facility providing professional care — and whether the coverage is comprehensive or basic, as defined by the policy.

The purchase of long-term care insurance may be one of the most important decisions one will ever make. When it comes to insurance policies, one size does not fit all. Understanding which policy and which insurance company is right for any one individual can be confusing and complicated. Financial Insights has a team of experts in place to guide clients through the complexities and diversities of long-term care insurance and to aid in making an informed decision.