Everyone Should Redo Their Financial Plan

The spread of the Omicron variant of Covid-19 is prompting many financial professionals to reach out to their clients to update those clients’ financial plans. It is very important for everyone to identify gaps in their current financial plan and to develop a strategy for the oncoming uncertainty.

It is a great time to think about your goals and life priorities and ensure that you have the documents and financial strategies in place to help you achieve them. Many people have paused creating or updating their plans because there is so much swirling uncertainty as it relates to how the Omicron variant or future strains of the virus will impact the economy.

However, it is very important to keep your plan updated on a regular basis because of this uncertainty so that you don’t leave yourself or your family members in unnecessary difficult situations. Having a conversation with an experienced and dedicated estate planning lawyer is one important step in this process and the beginning of a new year is a great opportunity to reflect back and ensure that your personal goals will be accomplished with the creation or updating of this current plan.

Do not hesitate to reach out to our New Jersey estate planning law office to learn more about how to analyze your existing estate plans and to adapt them for the future. Since no one knows what the future holds, you can ease your concerns about making things simple for your loved ones with the creation of an estate plan aligned with your needs.

What Is a Dynasty Trust?

If you are looking to transfer wealth through multiple generations you might consider using a tool known as a dynasty trust. This is a strategy to transfer wealth from one generation to another without the assets being negatively impacted by GST, estate or gift taxes.

These tax benefits apply so long as the assets stay in the trust and comply with relevant state laws. Furthermore, a dynasty trust offers other benefits making it a popular choice for those doing their estate planning. Primarily, it can protect assets placed inside the trust from divorcing spouses or creditors.

Other strategies available to accomplish similar goals include the use of an irrevocable life insurance trust which then transfers the assets free of the trust upon death. For these more advanced estate planning strategies you’ll want to partner with an experienced and knowledgeable estate planning lawyer.

The support of an attorney can be instrumental in helping you to accomplish your personal goals and assisting you with all aspects of your overall planning. Schedule a consultation today with an estate planning lawyer to learn a bit more about how this applies to you.      

What Is the Purpose of a Charitable Trust?

In discussing and researching options for your own estate planning, you may come across multiple options and strategies that can help you accomplish your goals. This can be further cemented by talking with a knowledgeable estate planning lawyer about your next steps, and you might hear the term charitable trust as part of this planning process.

At its most basic level, a charitable trust holds assets inside and distributes them to charities. How the assets will be managed and invest will depend on what you have specified in the trust. You can also use the terms of the trust to determine how it will make donations. Tax advantages are available to those creating a charitable trust but other forms of trust management may be more appropriate for you based on the individual goals you intend to accomplish.

One of the biggest reasons to use a charitable trust is to establish a long term plan for charitable giving. When you establish a charitable trust for these purposes, you can continue to make gifts over a long period. The trust is completely separate from you when established for charity. Any assets held inside the trust are owned by the trust and the trust requires management and pays taxes just as any other legally recognized entity would. To ensure this is the right fit for your estate planning strategy, schedule a time to speak with a lawyer.


What Is Succession Planning with GRATs?

The gap between what your current business is worth during the process of completing your estate and succession planning and what it could be worth in the future when you pass away should be considered as part of your overall planning process.

Many people choose to address this financial gap using a tool known as an irrevocable life insurance trust. When an irrevocable life insurance trust is structured correctly the benefits in that insurance policy do not pass through probate and can be available to your beneficiaries immediately. This can provide valuable cash reserves for the payment of estate taxes or other concerns.

You might also wish to retain a source of income for yourself while passing your business assets onto your children, and you might be able to use a tool known as a grantor retained annuity trust to accomplish this.

If assets inside grow during the course of the trust, the appreciation is not subject to estate taxes if you’ve done your planning properly. This can be a very beneficial and powerful tool for passing on a business that is growing rapidly. As with all things related to business succession planning and estate planning it is important to have the support of an experienced lawyer to guide you through the process. Schedule a consultation with a dedicated lawyer today to learn more.


What is Premature Asset Division in Probate?

An executor or personal representative is responsible for handling many aspects of probate, including the distribution of assets once other administration issues have been managed. However, prematurely passing on these assets to beneficiaries can come with consequences.

It might seem easier or even a good way to make beneficiaries happy by making those distributions right away, this can be illegal and can expose you to personal liability. It’s much better to make a comprehensive list of all the assets and then hold them until probate can be completed.

At the early stages of probate, you don’t know about all the possible legal creditors, either. This means someone could come forward with a legitimate claim once you’ve already liquidated or given an asset to someone else. This does not delete the creditor’s right to recover, which can create a very complex situation.  You don’t want to have to go back to that family member and ask for the item back.

Another reason to wait to make any transfers is that not all assets are probate assets. Some technically do not fall under the guidance of the will, such as retirement accounts or those placed in trusts. If those accidentally get lumped in with probate assets, this could create unnecessary confusion as well as personal liability.

If you’re newly appointed as an executor, even if the deceased person left great instructions for you, you might still want to hire an experienced probate lawyer to assist you with the many tasks required to close out probate. Even if you have a decent handle on all that is involved, it’s helpful to know that you’re on track and to feel confidence about the order in which you accomplish things.

Haven’t yet created your own estate? Contact an estate planning lawyer now to learn more about creating a personal plan.

How Does Location Affect Your Vacation Home Planning?

If you are holding title to a piece of real estate property that you intend to pass on to your loved ones and it’s in a different location, you’ll need to think carefully about how this location could impact your planning options. One of the best ways to approach this strategy overall is to schedule a consultation with an experienced and knowledgeable estate planning lawyer. Your estate planning lawyer can help you consider all of the different aspects of your planning concerns and craft an individualized plan that helps to accomplish your goals. Nj-vacation-home-estate-planning

You want to be careful if you hold title to a vacation home in a different state other than your primary home. If you own tangible property like a piece of real estate and what is known as ancillary estate or a second location, the executors of your will might have to open a second probate proceeding. You might think about placing that property inside an LLC or a trust which could help prevent having to open a second probate. 

There are many different strategies available to you when it comes to making a plan for your estate and for vacation homes but you need to start by considering the opportunities of working directly with an estate planning lawyer who is very knowledgeable about your concerns. The support of an attorney can help you avoid catastrophic mistakes that could make it more difficult for your loved ones to receive this property.

Special Planning For Small Business Owners

Neel Shah is a practicing estate planning attorney as well as a certified financial planner(r).  He has conducted over 3000 corporate business and real estate transactions throughout his career and is the author planning for business owners (available on Amazon).

Estate planning for business owners is especially important, but also a delicate endeavor. Business owners are often what is labeled as “asset rich, but cash poor.”

This is because of the illiquid nature of a small business, which can create problems when a business owner has passed away or become incapacitated there’s a need for liquidity.

Further, how are shares to be transferred of a business when the business owner passes away? Should they go to a spouse in which case the widow with a widower- may become partners with the small business owner’s business partner? Or should they go to the adult children? What if one adult child is involved in the business and others are not? Or what if there are no adult children and they are all minors? Business succession planning is paramount for these scenarios.

There are unique opportunities for business owners to take advantage of tax saving strategies beyond traditional IRAs. Business owners may decide to incorporate some combination of 401(k)s, solo 401(k)s, defined benefit plans, cash balance plans, and/or other retirement planning which can greatly reduce income tax liability.

One way to create liquidity is to use life insurance. In fact, business owners can and should evaluate life insurance needs on a regular basis-both for liquidity needs for the family, as well as in a succession planning/buy sell agreement type scenario.

If you’d like to discuss your estate planning needs further use the link below to schedule a call!


It’s My First Estate Planning Meeting; What Do I Bring?

If this is the first time you’ll be sitting down with your estate planning lawyer, there’s no doubt you’ll have some questions about what you need to think about or bring with you to that initial meeting.

If your lawyer does not already have a questionnaire prepared for you to fill out in advance of this meeting, you can do your own due diligence by documenting a few key things that are likely to come up during the meeting.

Use this checklist to get organized before your very first meeting with your estate planning team so that you will be able to discuss options and planning strategies if you’re ready to go to that step by hiring the attorney:

  • Family information such as names, addresses, dates of birth, and any specific details about who would like to receive what in your plan
  • Information about any of your retirement assets, such as with company they are with and how much is in those accounts, as well as copies of any beneficiary forms
  • Details for any non-retirement assets, such as your bank account locations and any forms you’ve filed with them
  • Previous details regarding any documents you’ve created with another lawyer, such as an active power of attorney form
  • A list of all the tangible personal property you own that you want to be included in your estate and any initial thoughts over who you want to receive what
  • Details about real estate and businesses, if applicable for your situation

In general, you want to give your estate planning lawyer a holistic perspective on what your estate looks like. You don’t need to have all the details organized by the time you meet with them, as you will surely think of other things after the fact, but this will help you get the process started as effectively as possible so that you can see a good perspective on your own estate.

Can Your Financial Institution Impose Restrictions on Your Accounts and Beneficiary Plans?

Using a financial power of attorney is one way to ensure that there’s someone else to step in and manage your assets if you become unable to do so, but be aware of not just the state’s rules about creating a power of attorney but your own financial institution’s policies around this.

Financial institutions can use contracts to limit your beneficiary naming and other strategies. The terms of your contract with your financial institution should be reviewed. This can be a beneficiary agreement, in your bank account signature card, or online. It is the document you would have signed when you opened it up. Your bank has the ability to determine how you style your financial accounts and how you name beneficiaries. This means that if you are not aware of a restriction because you didn’t read through the fine print when you opened the account, someone else could end up getting the assets inside those bank accounts. Since you won’t be around to deal with this situation, you want to have the clarity on what can be expected and the common pitfalls associated with it. An example of this can happen when you discuss things with your estate planning attorney and want to make sure that all of your children in equal shares receive your assets. If you fail to name contingent beneficiaries on your bank account form, for example, because this isn’t provided as an option, this can cause conflicts when it comes time to transfer those assets. Make sure that you gather any and all documents, such as account agreements with your banks and use these to schedule a consultation with your estate planning lawyer.

Marathons & Markets

Lately, we’ve seen a meaningful uptick in market volatility fueled by economic instability here and abroad. From Chinese real estate woes threatening to disrupt their economy, to political wrangling in Washington that will continue to ripple through our own, there’s no escaping that the headlines have near-term market impacts around the world. But if the ups and downs have you worrying, don’t forget—you’ve trained for this!

Click here to download



How to Avoid the Financial Pitfalls of Being a Caregiver

Common Caregiver Pitfalls

It takes a special type of heart and selflessness to be a caregiver for a loved one but sometimes the best intentions can backfire. Most often it’s going to be the adult child or spouse that will act as the caregiver. But there may be other interested parties in the circumstances, such as siblings or stepchildren, with different motivations-nefarious or not.

One of the pitfalls I see with caregivers is the commingling of assets. It’s common for the caregiver to pay for groceries, or pay out-of-pocket for certain expenses for a loved one with the expectation that it will all balance out in the end. However, when it’s time to reconcile, everyone may not be on the same page and the caregiver may be out of this money.

We often see caregivers give up jobs or careers to care for a loved one. This may be an active decision made by the caregiver because of the belief that the loved one will take care of them. However, when there’s not clear communication to this regard, the caregiver can find themselves in a financially difficult situation if the family member being cared for as had a change of heart, or if other beneficiaries of the potential estate dispute the value of the services, or any renumeration at all.

Sometimes taking on the responsibility as a caregiver may bestow upon the caregiver a heightened standard. Are the investments be managed properly? Is the cash flow being tracked? Are the proper safeguards in place in the event of a fraud/theft? If the caregiver hasn’t put these things in place, will the caregiver face liability? Often the answer is no, but despite not facing potential legal liability there may still be a negative impact on relationships with other family members.

Neel’s Gift as the ‘Indian’ Cowboy

My parents moved to the US in 1973, I was born in 1975. For some reason, whether it was by omission or intentional – I didn’t learn English.

Imagine showing up for your first day of school, in the country in which you were born – having (a) avidly watched Sesame Street daily & (b) being fascinated with being an American cowboy , only to be placed in an ESL (English as a Second Language) class. 🙄

To be totally honest, I don’t remember what I felt at the time. I really don’t have distinct memories so I don’t think I was traumatized or set back in life anyway. What did happen was something beautiful. And last week, about 40 years later, I was reminded of it:

I was asked to help educate a group of Senior citizens via Zoom on Financial, Tax and Estate planning updates. All. In. Gujarati.

During the meeting, I got to look into the beautiful faces of 150 Indian-American couples who came to this country and raised the kids of my generation.

It was an honor to have spent the time to help those who have helped so many of my peers. The video is available here (https://youtu.be/xHJH7qcBKtI) in case you, or someone you know would like to see/hear it.

And as for the impact of not learning English until I started school? I guess it wasn’t too bad. Pinky and I did the same thing to our kids after all.

I can’t wait to see how they choose to give back when their time comes. Thank you Mom (Anjana) for this amazing gift!

By: Neel Shah 

Should You Create a Trust to Handle Estate Planning for Stocks?

Creating an estate plan requires a holistic view of what you intend to accomplish and will require your consideration and thought. It is usually best done with the help of an experienced estate planning lawyer when you start the process.

One of the first things you will do is to create an overview or a list of all of your assets. You might find that an asset inside your estate are your shares of stock and there are a couple of different ways that you can handle this as part of your estate planning strategy. Your lawyer will sit down with you to discuss which of these makes the most sense. One option is to create a trust to hold the shares of stocks. Extra caution must be taken before transferring any title to a trust if the company in question is an S corporation.

The S selection could accidentally be destroyed in this process with invalid planning which could have significant tax consequences for the company. It is vital to get guidance from a knowledgeable attorney before creating any estate plan that has S corporation stock inside of it. There are benefits, however, to using a trust for the purposes of stock estate planning. The biggest is that ownership will transfer efficiently and smoothly after you pass away without requiring the oversight of the probate court. This is why you’ll want to discuss all of the options with your estate planning strategy with the help of an experienced attorney. You will be able to cover all of your bases and have a better perspective on what to expect.

Why Should I Hire an Attorney to Help Me with My Will?

Creating your own will is a common interest for many people who have had this on their to-do list for some time and are concerned about how to best protect their interests and cross this off their checklist.

Creating a DIY will is an alternative to hiring an experienced lawyer but it also comes with its own risks. A lawyer can provide instrumental insight in the process of creating your estate plan, including a will. Furthermore, your lawyer will be familiar with state and federal requirements as well as common reasons for which wills are challenged. A will challenge can slow down the administration of your estate when one or more beneficiaries believes that the will is invalid.

Your lawyer will help you match the document created with your planning intentions to create a plan that’s aligned with your future. This helps you know that if something happens to you, your loved ones are taken care of because of this advanced planning. A lawyer can also introduce you to estate planning strategies you might not have known about, too.

Having the support of a lawyer to create this document in the first place can decrease the chances of a successful will challenge and ensure that you have considered all of the most important aspects of your estate plan. A lawyer can also review your will with you on a regular basis to ensure that it’s in line with your individual goals as well as state and local requirements. You can make things much easier for your loved ones by having a will drafted by a knowledgeable attorney.


What Are Tenants in Common?

Tenancy in common is a formal arrangement in which two or more individuals have ownership rights in a property or a piece of land. Each person who owns a portion of tenancy in common could own a different percentage of the total property or an equal percentage. This property type can also be residential. Tenants in common are eligible to bequeath their share of the property to anyone when they pass away.

Tenancy in common is also a distinct concept from joint tenancy. This is especially when it comes to the degree of ownership that each tenant maintains and survivorship rights. You can create a tenancy in common appointment at any point in time and members of the agreement are eligible to borrow against or independently sell their portion of ownership. Tenancy in common and joint tenancy have a few important differences. In a joint tenancy, tenants will get equal shares of a property with the same deed at the same point in time. In tenancy in common, a change in members doesn’t break an agreement. However, with joint tenancy the agreement is broken if any of the members decide to sell their interests.

Additionally, certain states name joint tenancy as default property ownership for married couples, whereas others would use the tenancy in common ownership model. This is why it is so important to set aside time to speak with an experienced lawyer about your unique situation and how you wish to leave property behind.       

How Will Social Security Benefits Impact Your Retirement?

Social Security benefits are an important form of fixed but recurring income for most retirees. There are many important details that you should consider in terms of incorporating these as part of your retirement plan and in conjunction with your estate planning strategy. Individuals in the United States can currently start receiving Social Security benefits at 62 years old.

However, the longer you can delay your retirement benefits will significantly increase your benefits. Waiting until the full retirement age of 70 will put you in the best position financially if you can survive until that point without those benefits. Each person’s situation is different so you need to be sure to consider the specifics of your situation and to discuss this with your financial professional. Selecting the benefits to work will help you make the right decisions and some of the most important factors to consider include your life expectancy, whether or not you have health insurance through an employer sponsored plan and any employment status. 

For example, if you plan to continue working you might want to delay benefits since you’ll have another source of income. However, it’s also important to note that many people end up retiring earlier than they expected so you’ll want to have a backup plan of what to do in the event that you need to make an exit from the workforce sooner rather than later. For more questions about how to create a comprehensive estate plan that addresses all of your needs, schedule a time to speak with an experienced lawyer.       


Enforcement Against Self-Directed IRA Scams Doubled in 2020

The danger of self-directed IRA scams heightened during the pandemic, as many investors were at home and online but isolated from in-person interaction, NASAA says.

The number of investigations and enforcement actions by state securities regulators remained largely steady during the COVID-19 pandemic, though the total amounts of restitution and penalties/fines each decreased by about half between 2019 and 2020, according to the North American Securities Administrators Association’s annual enforcement report released this week.

But the number of state enforcement actions focused on self-directed individual retirement accounts (IRAs) more than doubled, from 24 in 2019 to 53 in 2020. Joseph Borg, the director of the Alabama Securities Commission and the co-chair for NASAA’s enforcement section, said the danger of self-directed IRA scams heightened during the pandemic, as many investors were at home and online but isolated from in-person interaction.

Related: New NASAA President to Prioritize Expungements, Digital Assets

“That became the new trust vehicle for con artists to convince folks that ‘you’re not sending the money to me. You have control over it,’” Borg said.

With self-directed IRAs, investors can use tax-deferred retirement funds from traditional IRAs to purchase “alternative” investments that are not typically accessible; some self-directed IRAs allow people to invest in certain digital assets and cryptocurrencies, according to NASAA. But these options are usually directed at investors with particular interests or expertise in unconventional options, not the typical investor. Additionally, custodians for these IRAs do not tend to work like a typical IRA’s custodian, according to the NASAA report.

Related: NASAA: Nearly 60% of State Advisors Lack Procedures Protecting Senior Investors

“Specifically, (self-directed IRA) custodians generally do not have the fiduciary duties associated with investment advisers,” the report read. “This lack of services, and protections, is fertile soil for scammers.”

Once a victim rolls over their 401(k) and IRA savings into the self-directed accounts, the schemer can access them, depriving the investor of their retirement savings, according to NASAA. Borg said self-directed IRAs were enticing tools for scammers because while investors were familiar with IRAs, they wouldn’t necessarily understand the difference between a traditional IRA and a self-directed equivalent.

NASAA conducts an annual survey of all U.S. members (the survey for 2019 found state regulators collected $700 million in total investor relief that year). Last year, states initiated 5,501 investigations and reported 2,202 enforcement actions in total, including 206 criminal actions, according to the report.

According to Joe Rotunda, the enforcement director for the Texas State Securities Board and vice chair for NASAA’s enforcement section, there were an additional 2,572 investigations that carried over from previous years, with 8,073 investigations in total. State regulators initiated 497 against registered parties, including 153 investment advisors, 115 IARs, 110 broker/dealer firms and 119 b/d agents. States also brought 619 total enforcement actions against unregistered parties in 2020, including 20 unregistered financial planners.

In total, $306 million was ordered returned to investors via restitution in 2020, compared with $634 million in the prior year, while there was $42 million in fines or penalties, a drop from $80 million in 2019, according to the report. In mulling the contrast between enforcement action rates and the drop in monetary restitution and penalties, Borg argued that investigations were less likely to be impacted by remote working, as investigations could still be opened and documents received and analyzed when working from home last year.

But Borg believed there would be a lag in criminal proceedings, though he speculated that was more likely to show up in next year’s data. He noted that restitution was often part of the criminal system, and often came near the conclusion of investigations.

“I do think we saw a slowdown on the criminal side,” he said. “But remember, there’s a time lag between opening up an investigation and moving forward on the cases.”

Earlier this week, NASAA announced a new campaign, partnering with the Financial Industry Regulatory Authority and the Securities and Exchange Commission’s Office of Investor Education and Advocacy to urge investors to supply financial firms with a trusted contact. That person could be contacted by the firm in certain circumstances, including if there is suspicious activity in an account or if the investor cannot be contacted.

“All investors can benefit from adding a trusted contact to their account—having one or more trusted contacts provides another layer of security on the account and puts the financial firm in a better position to help keep the account safe,” FINRA President Robert Cook said about the initiative.

By: Patrick Donachie

Sources: https://www.wealthmanagement.com/regulation-compliance/enforcement-against-self-directed-ira-scams-doubled-2020


Will Infation Hurt Stock Returns? Not Necessarily.

Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks.

A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns.

Since 1991, one-year returns on US stocks have fluctuated widely. Yet weak returns occurred when inflation was low in some periods, and 23 of the past 30 years saw positive returns even after adjusting for the impact of inflation. That was the case in the first six months of 2021, too (see Exhibit 1).

Over the period charted, the S&P 500 posted an average annualized return of 8.5% after adjusting for inflation. Going all the way back to 1926, the annualized inflation-adjusted return on stocks was 7.3%.

History shows that stocks tend to outpace inflation over the long term—a valuable reminder for investors concerned that today’s rising prices will make it harder to reach their financial goals.

Sources: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

How Is an Estate Guardian Different from a Minor Guardian?

In the event of incapacity or death, you probably have estate planning strategies in place to help you and your loved ones adjust. Many people think about the estate planning process as the process of planning for people. You are planning for the people that you leave behind, and some of the most important people to think about are your children.

This means thinking carefully about whether or not you need a minor guardian. If you and the other surviving parent are no longer able to care for your child because of a sudden accident or death, that child will still need a guardian and you have the ability to name the person you want to serve as guardian through the court. There are two different types of guardians to evaluate as part of your estate planning. The first is the guardian of the person and the second is the guardian of the estate. The personal guardian is the individual who is responsible for taking care of day to day needs like shelter, clothing, food and medical care. The guardian of the estate, however, is responsible for managing the property and the money of the person who needs a guardian.

These individual roles are very important and should be evaluated carefully with you and the other parent should you both be on the same page about what will happen to your child. Having these conversations now is not easy but can be important to reduce the stress and frustration in the future. Do not hesitate to get help from an experienced and knowledgeable lawyer right now.


Tuning Out the Noise

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as affecting your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the so-called lost decade– the 2000s, when the S&P 500 ended below where it
began–can help illustrate several periods that may have led market participants to question their approach.

*March 2000:
Nasdaq Stock Exchange Index Reaches an All-Time High of 5048*April 2000:
In Less Than a Month, Nearly a Trillion Dollars of Stock Value Evaporates*October 2002:
Nasdaq Hits a Bear-Market Low of 1114*September 2005:
Home Prices Post Record Gains*September 2008:
Lehman Files for Bankruptcy, Merrill Is Sold

While these events are more than a decade behind us, they can still serve as an important reminder for investors. For many, feelings of elation or despair can accompany headlines like these. We should remember that markets can be volatile and recognize that, in the moment, doing nothing may feel paralyzing. However, if one had hypothetically invested $10,000 in US stocks
in January 2000 and stayed invested, that would be worth approximately $32,400 at the end of 2019.1

When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. While no one has a crystal ball, adopting
a long-term perspective can help change how investors view market volatility and help them look beyond the headlines.

Part of being able to avoid giving in to emotion during periods of uncertainty is having an appropriate asset allocation that is aligned with an investor’s willingness and ability to bear risk. It also helps to remember that if returns were guaranteed, you would not expect to earn a premium. Creating a portfolio investors are comfortable with, understanding that uncertainty is a part of investing, and sticking to a plan may ultimately lead to a better investment experience.

However, as with many aspects of life, we can all benefit from a bit of help in reaching our goals. The best athletes in the world work closely with
a coach to increase their odds of winning, and many successful professionals rely on the assistance of a mentor or career coach to help them manage
the obstacles that arise during a career. Why? They understand that the wisdom of an experienced professional, combined with the discipline to forge ahead during challenging times, can keep them on the right track. The right financial advisor can play this vital role for an investor. A financial advisor can provide the expertise, perspective, and encouragement to keep you focused on your destination and in your seat when it matters most. A survey conducted by Dimensional Fund Advisors found that, along with progress towards their goals, investors place a high value on the sen se of security they receive from their relationship with a financial advisor, as Exhibit 2 shows.

Having a strong relationship with an advisor can help you be better prepared to live your life through the ups and downs of the market. That’s the value of discipline, perspective, and calm. That’s the difference the right financial advisor makes. For a short video on this topic, please see

Sources: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.