Risk Management

  • With financial planning, even the most positive and consistent efforts can be upended by event out of one’s control. Life is full of the unforeseen – from relatively minor nuisances to significant an­d foundation shaking events, it’s important to both understand where an individual financial plan may be exposed while also taking reasonable and prudent measures to guard against unnecessary risk.

    Where is your plan at risk?

    The first step is identifying where the risk lies within a financial plan. It’s important to differentiate between reasonable risk, such as; covering deductibles for automobile/medical coverage or choosing to go without the extended warranty for a cell phone, as opposed to peril that may jeopardize the success of one’s financial plan.

    Guarding against disability, where the income necessary to move the plan forward may be compromised, is a fundamental step within a well devised financial strategy. It’s important to address that major obligations can be paid, that a child’s educational needs can be met, or that income can be adequately replaced and one’s business can remain operational. It is also prudent to properly shield a portfolio from unnecessary tax and liability exposure.

    Insurance planning

    There are a whole host of insurances available to every consumer. Some policies are legally required – auto and home owners – while other policies such as umbrella/liability protection can provide great peace of mind, though often go overlooked. Commonly, life insurance provides protection while assets are limited and debts are significant, or as a vehicle to minimize a current or future tax burden. It is also an important component of any business plan, whether to maintain ownership stake or to satisfy a bank obligation. Disability insurance protects the single most important part of the financial strategy, namely the income required to work towards any financial objective. It can also be integral in addressing business overhead expenses and keeping the organization afloat.

    The advisors at Finity Group are well equipped to help you understand how policies differ, identify those insurances which should be built into the plan, and how best to find coverage that properly addresses your unique planning needs. Please follow this links to see how our independent structure can help you with this part of your financial plan. And/or follow this link to request a meeting to discuss/find an advisor to discuss.

    Legal planning

    A properly structured financial strategy will benefit from sound legal planning. For individuals and families, meeting with an attorney to draft basic legal documents is a wise step early on. Whether for employment, to acquire a business, or to insulate assets from potential liability, legal advice compliments a financial plan and provides confidence that planning efforts stand a better chance of long-term success.

    While the advisors at Finity Group are not able to provide legal advice, as a comprehensive planning firm operating nationwide, we can effectively work with your legal team to integrate efforts. We also have numerous contacts that we can introduce to your plan as well.

    Asset protection

    For many people, taking steps to shield personal and business from liability or other loss is an advisable consideration. For physicians and dentists, integrating these protection strategies is vitally important given the unique place that credentials and general perception places on these individuals within society. This is true also for business owners and a number of other professionals and families with significant assets. Proper asset protection requires proactive planning rather than quick reaction. Working with a comprehensive financial planner can help identify risk and alert one to areas of exposure.