Beginner Investor Services and Resources:
When thinking about investing there are several issues that need to be addressed before getting to your investment selections. For example, establishing and working with a budget, creating an emergency fund, and starting a plan to reduce your debt are all imperative to your financial success. Addressing these three things is the starting point on your path to financial freedom.
Having a budget will allow you to identify the things that you spend money on and which of those things may be reduced or cut out completely in order for you to save more money on a monthly basis. The emergency fund is necessary so that if you have a financial need (new tires for the car, a new water heater for the house or maybe even some medical expenses), you will not have to borrow money to cover the costs. Classifying your debt and having a plan to eliminate said debt is incredibly important in the financial planning process. Not all debt is bad debt (mortgage interest may be able to save you some money on your tax return, depending on whether or not you are able to itemize your deductions) but a plan should be in place to take on ALL of your debt so that you can reduce and eventually eliminate your debt and become financially independent. When looking at the shorter-term debt, start with the interest rates that are the highest and work your way down to the lower interest rates. Consolidate when possible but do not fall into the trap of eliminating debt in one area and then racking it right back up again.
Some of the other issues that need to be addressed for the beginning investor are – life and health insurance, property and casualty insurance, mortgage interest rate, estate planning tools, setting investment and retirement goals, contributing to your company’s retirement plan (401k / 403b / SIMPLE IRA / etc.), setting expectations and investment risk tolerance.
Any consultation by the team at Baron Financial Group, LLC is going to address these issues so that we can make sure when we discuss investments or insurance that we have enough information to make clear and concise recommendations. For example, though we do not sell homeowners or automobile insurance, we can have a conversation about your policies to make sure that you understand the coverage and the exposure to potential liability so that you can feel comfortable with the coverage that you are carrying. We also are not a law firm but as a part of the all-inclusive approach that we take in regards to financial planning we can discuss what tools might be appropriate for you to look into for your estate planning issues (wills, trusts, power of attorney, etc.). When it comes time to put those pieces in place, we can refer you to an estate planning attorney to help you with those specifics. The bottom line is that if it is an issue that can affect your financial future, we want to address it with you. There is a ton of information on the internet that can help you along your path but we feel strongly about working with a financial planner to assist with the planning process.