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A financial planner is a professional who helps individuals and businesses develop strategies to achieve their long-term financial goals. Their primary focus is ensuring clients are financially secure throughout their lifetime and are equipped to manage their investments effectively.

Here’s a more detailed look into the roles, responsibilities, and regulatory environment surrounding financial planning.

Core Responsibilities of a Financial Planner

1. Goal Setting and Assessment

Financial planners begin by understanding a client’s financial situation, including income, expenses, assets, and liabilities. They then assist in setting specific financial goals—be it saving for retirement, funding education, or making investments.

2. Budgeting and Cash Flow Management

Advisors help create budgets that enable clients to control cash flow. This analysis is crucial for understanding spending habits and finding ways to save for future goals.

3. Investment Strategy Development

They develop investment strategies tailored to the client’s risk tolerance and financial objectives. This may include selecting mutual funds, stocks, bonds, real estate or other appropriate investments.

4. Retirement Planning

Financial planners assist in preparing for retirement by calculating how much money a client will need to live comfortably in retirement and creating a strategy to accumulate that wealth over time.

5. Tax Planning

They may provide strategies to minimize tax liabilities through various investment vehicles and tax-efficient withdrawals, ensuring clients retain more of their earnings.

6. Estate Planning

Financial planners often work with clients to develop estate plans, including wills and trusts, to ensure that assets are distributed according to the client’s wishes after death while minimizing estate taxes.

7. Risk Management and Insurance

An evaluation of insurance is a part of their service, helping clients understand insurance needs in areas such as health, life, and property.

Certification and Qualification

To practice as a financial planner in the United States, individuals can obtain certifications such as Certified Financial Planner® (CFP) and Chartered Financial Consultant® (ChFC). These credentials ensure financial planners adhere to ethical standards and possess the necessary expertise. Make sure to ask your financial planner about their certifications and qualifications before making the decision to work with them.

Regulatory Environment

Financial planners are regulated by various laws and governing bodies to ensure they act in the best interest of their clients. Key regulations include:

• Investment Advisers Act of 1940
  – This act regulates investment advisers and requires them to adhere to fiduciary standards, meaning they must act in the best interests of their clients.
• Gramm-Leach-Bliley Act (GLBA)
  – The GLBA requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data.
• Dodd-Frank Wall Street Reform and Consumer Protection Act
  – This act was enacted to improve regulation of the financial industry, and it includes provisions that affect financial planners concerning transparency and client protection.

When to Consider a Financial Planner

A financial planner can provide guidance through these transitions by helping you understand the implications of each change. For example, marriage or divorce can alter tax situations and affect asset distribution, while having a child introduces new expenses and savings needs.

For individuals selling a business, a financial planner can assist in structuring the sale to maximize value and strategize on how to allocate the proceeds. Similarly, as you prepare for retirement, a financial planner can help you assess your current savings and create a plan to ensure financial stability throughout your retirement years.

A sudden increase in income, whether from a promotion, bonus, or another source, can create opportunities for new investments or savings strategies. Conversely, being laid off may necessitate immediate financial adjustments. A financial planner can guide you through budgeting and exploring new income sources during this transition.

Moreover, managing an inheritance can be complex. A financial planner can provide advice on how to utilize these funds wisely, whether that means investing, saving for future needs, or addressing debts.

In all these situations, a financial planner can assist you in aligning your decisions with long-term goals. They can help you set realistic objectives and develop actionable strategies, ensuring that your financial choices support your vision for the future.

How Can American Wealth Management Help?

At American Wealth Management, our team of experienced financial planners can help you create a customized financial plan that reflects your personal goals and circumstances. We help you prepare for retirement, invest based on your risk tolerance, consider tax implications, create an estate plan, and more.

Schedule a consultation with American Wealth Management today. Let us help you build a secure legacy for your loved ones.

Sign up for a free consultation with American Wealth Management.

For more information regarding your financial professional designation(s), click here.

Financial security is a cornerstone of a fulfilling life. Whether you’re planning for a dream vacation, saving for your child’s college education, or looking forward to a comfortable retirement, having a clear financial plan is essential. A wealth manager can be a valuable partner in achieving your financial goals.

You want to find a financial partner you have absolute trust in. But with so many wealth management options available, choosing the right one can feel daunting. Learn the key factors to consider when selecting a wealth manager to find someone who perfectly aligns with your needs and values.

Building Trust: The Foundation of a Strong Relationship With Your Wealth Manager

At the heart of a successful wealth management relationship is trust. Your wealth manager should be someone you feel comfortable discussing your financial situation openly and honestly. This open communication is crucial for developing a personalized plan that reflects your unique goals and risk tolerance.

Here are some key traits to look for in a dependable and trustworthy financial advisor:

Transparency

A trustworthy advisor should be upfront and clear about everything. This includes their fees, their investment philosophy, their experience, and their qualifications. They should be happy to answer your questions and explain things in a way you understand.

Your advisor should be an excellent communicator. They should be able to explain complex financial concepts in a clear and understandable way. They should also be a good listener who is attentive to your concerns and goals.

Strong Credentials

When searching for a trustworthy wealth manager, both credentials and experience play a crucial role. Here’s a breakdown of what to look for:

• Credentials: Look for advisors with relevant certifications like CFP® (Certified Financial PlannerTM) or CFA® (Chartered Financial Analyst®). These certifications demonstrate a commitment to ongoing education and adherence to ethical standards.
• Years of Experience: While new advisors can be knowledgeable, experience managing wealth through different market cycles is valuable. Look for someone with at least 5-7 years of experience.
• Experience with Similar Clients: An advisor who has experience working with clients in a similar financial situation to yours can be a plus. They’ll have a better understanding of the challenges and opportunities you might face. For example, if you’re a young professional, an advisor with experience helping other young professionals manage debt and invest for the long term might be a good fit.

Focus on Long-Term Financial Planning

A trustworthy advisor is more interested in developing a personalized plan for your long-term financial future than making a quick sale. They should take the time to understand your unique situation, risk tolerance, and goals before recommending any investments.

By looking for these traits and prioritizing them, you can increase your chances of finding a great financial advisor who will be a valuable partner on your financial journey.

Fiduciary Duty

Their recommendations should be based on what’s best for you, not what generates the highest commission for them. You can look for an advisor who operates as a fiduciary. This means they are legally obligated to prioritize your financial well-being above all else.

It’s not that other financial advisors won’t keep your best interest at heart—after all, most are paid a percentage of your wealth. So growing it can be in their best interest. However, depending on your situation and the nature of the funds you want managed, having a fiduciary wealth manager might give you some peace of mind.

Finding the Right Fit for Your Stage of Life

Financial needs evolve throughout life, and a good wealth manager will understand that. Here’s a breakdown of some common financial priorities at different stages, along with the services a wealth manager can provide to address them:

Young Professionals (20s-30s)

This age group is often focused on establishing financial independence. Common goals include managing student loan debt, building an emergency fund, saving for a down payment on a house, and starting to invest for the long term. A wealth manager can help create a budget, develop a debt repayment plan, and recommend appropriate investment strategies for long-term wealth accumulation.

Families (30s-50s)

Families often juggle multiple financial priorities, such as saving for college, managing childcare costs, and protecting their income with life insurance. A wealth manager can help create a college savings plan, develop a risk management strategy, and ensure your investment portfolio aligns with your changing needs and risk tolerance.

Pre-Retirees (50s-60s)

As retirement approaches, the focus shifts to maximizing retirement income, minimizing taxes, and ensuring your nest egg lasts throughout your golden years. A wealth manager can help assess your retirement readiness, develop strategies to increase retirement income (through investments or social security optimization), and create a tax-efficient withdrawal plan for your retirement savings.

Retirees (60s+)

Retirees want to enjoy their golden years while ensuring their financial security. Common concerns include managing retirement income, minimizing healthcare costs, and leaving a legacy. A wealth manager can help manage your retirement portfolio, develop strategies for income generation and wealth preservation, and create an estate plan to ensure your assets are distributed according to your wishes.

Remember, this is not an exhaustive list, and everyone’s situation is unique. A good wealth manager will take the time to understand your specific goals and circumstances, regardless of your life stage. They can then tailor their services to address your needs and help you navigate the ever-changing financial landscape.

Making Your Big Financial Plans a Reality

Many of us dream of traveling the world, retiring comfortably, or starting a business. But transforming those dreams into reality requires a well-defined plan and ongoing financial guidance. A wealth manager can help you develop a personalized roadmap to achieve your long-term goals. Through a combination of financial planning and investment management, a qualified wealth manager can help you navigate market fluctuations and make informed decisions that move you closer to financial freedom.

Finding the Right Wealth Manager for You

The right wealth manager can be a valuable partner on your financial journey. By prioritizing compatibility, experience, and the right credentials, you can ensure you have a trusted advisor by your side.

Live in Reno, Nevada?

American Wealth Management (AWM) is a wealth management firm dedicated to helping individuals and families in our community reach their financial goals. We offer complimentary consultations to discuss your unique financial situation and goals. Contact us today to schedule a free consultation call and see if we’re a good fit for you.
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Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation. For more information regarding your financial professional designation(s), click here.

Breaking Down The Basics of Medicare

Whether your 65th birthday is on the horizon or decades away, understanding the different parts of Medicare is critical, as this government-sponsored program may play a role in your future healthcare decisions.

Parts A & B: Original Medicare. There are two components. In general, Part A covers inpatient hospital care, skilled nursing facility costs, hospice, lab tests, surgery, and some home health care services. One thing to keep in mind is that, while very few beneficiaries must pay Part A premiums out of pocket, annually adjusted standard deductibles still apply.1,2

Many pre-retirees are frequently warned that Medicare will only cover a maximum of 100 days of nursing home care (provided certain conditions are met). Part A is the one with these provisions. Under the current Part A rules, you would pay $0 for days 1-20 of care in a skilled nursing facility (SNF). During days 21-100, a $204 daily coinsurance payment may be required of you.1,2

Knowing the limitations of Part A, some people look for other choices when it comes to managing the costs of extended care.

Part B covers physicians’ fees, outpatient hospital care, certain home health services, durable medical equipment, and other offerings not covered by Medicare Part A.2

Part B does come with some costs, however, which are adjusted annually. The premiums vary, according to the Medicare recipient’s income level, but the standard monthly premium amount is $174.70, and the yearly deductible is $240 for 2024.2

Part C: Medicare Advantage plans. Sometimes called “Medicare Part C,” Medicare Advantage (MA) plans are often viewed as an all-in-one alternative to Original Medicare. MA plans are offered by private companies approved by the federal government. Although these plans come with standardized minimum coverage, the amount of additional protection offered can differ drastically from one person to the next. This is due to unique provider networks, premiums, copays, coinsurance, and out-of-pocket spending limits. In other words, comparing prices and services offered by different vendors may be the best way to find a Medicare Advantage plan that works for you.3

Part D: Prescription drug plans. While Medicare Advantage plans often offer prescription drug coverage, insurers also sell federally standardized Medicare Part D plans as a standalone product to those with Medicare Part A and/or Part B. Every Part D plan has its own list (i.e., a “formulary”) of covered medications. Visit Medicare.gov to explore the formulary of approved drugs for your Part D plan as well as their prices, organized by tier.4

In fact, Medicare.gov is a great place to start all your research. Once there, you’ll find answers to your most common questions and more information on the different Medicare plans offered in your area.

If you have questions about your finances, take advantage of American Wealth Management’s 1- hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

American Wealth Management Reno, Nevada

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 94.7 million in 2060. As our nation ages, many Americans are turning their attention to caring for aging parents.1

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover the Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

• Primary physician
• Specialists
• Medications and supplements
• Allergies to medication

It is also important to know the location of medical and estate management paperwork, including: 2

• Medicare card
• Insurance information
• Durable power of attorney for healthcare
• Will, living will, trusts, and other documents

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep the Lines of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Don’t Procrastinate

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

If you have questions about your finances, take advantage of American Wealth Management’s 1- hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our financial advisors.

American Wealth Management Reno, Nevada

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1. ACL.gov, November 2022
2. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

Retirement is a significant transition, and it can bring both challenges and opportunities for women who have spent many years focused on their careers. For women approaching retirement age, it is crucial to consider various tips and strategies to ensure a smooth and fulfilling transition. An elegant pivot from work life to a life of one’s own requires careful consideration. A woman retiring at 65 may live another two decades or more. That’s not only a long time to finance, it’s also a long time to figure out how to fill your life with meaningful activities.1

A Change of Identity

Retirement can change a woman’s identity, especially those who have worked in the same profession for many years. Exploring new interests and finding a new sense of purpose could involve taking on a new job title, pursuing a passion, or simply embracing new hobbies and activities. But you’ll enjoy your retirement more if you start thinking about establishing the new “you” independent of your career.

Addressing Your Finances

One of the first steps to take when preparing for retirement is to address financial matters. This includes reviewing your estate strategy, getting all necessary documents in order, and having contingency plans in place for emergencies and the unexpected. Consider meeting with a financial professional before and after retiring to help establish that the appropriate steps are being taken.

Pivot to a New Career

For women concerned about their savings or Social Security benefits, considering part-time work, working from home, or starting a small business can provide income and social interaction. You have the choice here to ease into retirement while still keeping active and engaged. The Department of Labor says that women are more likely to work part-time in retirement. Many part-time jobs may not have retirement plans, making it necessary to plan accordingly.1

Another option for women is volunteering. Many miss the engagement and challenge of the workforce, and volunteering allows them to dedicate their time to helping others while gaining personal fulfillment. Volunteering can be a way to stay connected to the community while making a difference.

Now that you have the time, why not try something new? Taking classes is also a way for women to continue learning and growing in retirement. Many courses covering various topics are available online or in person, allowing you to explore new interests and stay mentally active.

Focus on Your Health

Beyond addressing financial matters and finding ways to stay engaged, women must prioritize their health in retirement. This includes eating a balanced diet, exercising regularly, and getting the right amount of sleep. But your overall health includes more than just your physical body. Social engagement is also essential for happiness and health. Even for natural homebodies, spending time with others can have a positive impact.

It’s essential to remember that adjusting to retirement takes time. Transitioning into retirement can be a significant change for women who have dedicated many years to their careers. However, with careful preparation and consideration, women can make the most of this new phase of life. By addressing financial matters, finding ways to stay engaged, prioritizing health, and exploring new interests, women can embrace retirement as a new beginning and enjoy a fulfilling and rewarding experience. It is normal to experience a range of emotions after retirement, but these feelings will likely change over time. Being patient with yourself and understanding that it is a process may help alleviate frustration.

If you have questions about your finances, take advantage of American Wealth Management’s 1- hour no-cost financial consultations. Submit this form to us and we will contact you to schedule a video call with one of our advisors.

American Wealth Management Reno, Nevada

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities. M.S Howells does not provide tax or legal advice. Please consult your legal or tax advisor regarding your individual situation.

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