Financial Planning FAQ (Part 2)
Are you thinking about taking advantage of financial planning services in order to get a headstart on your future and to help you achieve your financial goals? Financial planning is important and can help you to make financial decisions that will be beneficial for you in both the short-term and the long-term. Here are some of the frequently asked questions that clients tend to ask us as well as our responses to them:
Why is it important to diversify my financial portfolio?
It’s very common for people to ask why it’s important to diversify their investments and what it means to diversify their portfolios. Simply put, diversifying your portfolio implies having many different types of investments, rather than just sinking all of your investment funds into one type of investment. The reason it’s important to have a diverse investment portfolio is because doing so will help you to avoid potentially “putting all of your eggs into one basket.” Having a diverse portfolio means lessening the potential risk for incurring losses and ensuring that you will be making money–rather than potentially losing out on money–from investing one way or another.
What should I ask when I’m vetting financial advisors?
When you’re meeting with potential financial advisors who you are thinking of working with, the main thing that’s important to inquire about is their background, their qualifications, and what all they can help you with (and how). It’s also a good idea to inquire about the types of people who they tend to work with and what kind of experience they have working with people who are in similar situations as you.
What does financial planning entail?
While not all financial planners are the same, there are some core components that you can generally expect when meeting with a financial advisor. Financial planning generally entails meeting with a financial advisor, discussing your short-term and long-term goals, coming up with a plan or a roadmap on how to reach your goals, and periodic check-ins here and there to check on your and your money’s progress.
For more information about our financial services, don’t hesitate to contact Michael Rebischke, your local financial planner near Bloomington MN, today.