Think of retirement planning as preparing for a long, cross-country road trip. Just as you choose the right route and map out your route for the trip, in retirement planning, you must make a series of complex decisions to reach your financial destination (a secure, independent lifestyle for the rest of your life).

Given the unpredictable nature of today’s economy, having a retirement plan can help you set financial goals for your later years and develop strategies to reach those goals. 

A comprehensive retirement plan should address the following considerations:

• With rapidly rising life expectancies, saving enough to cover decades of living expenses without a regular income becomes more challenging. Retirement planning helps you calculate how much money you’ll need and the best ways to obtain that amount.
• As medical care continues to make major advances, the cost of these services will continue to rise. Imagine one or both spouses in assisted living, skilled nursing, or memory care for prolonged periods. Planning for retirement can help cover these costs, thereby reducing the fear of running out of money late in life when you need it the most.
• You already know the purchasing power of your income doesn’t stay constant due to inflation—what you can buy with a dollar today will not be the same 10, 20, or 30 years from now. Retirement planning should include strategies that address how you can invest your assets and earn returns net of inflation. This is more complicated than you may realize. Let’s say you earn an 8% return, distribute 4% to cover your cost of living, and 4% of your future purchasing power is eroded by inflation. Your effective net return is zero.
• Life can be unpredictable. You should prepare, the best you can, for the unexpected. This is the primary purpose of insurance. For example, you may have a health issue requiring an early retirement. The right plan can help you feel more secure about an early retirement for health reasons.
• Ultimately, everyone wants to maintain an enjoyable lifestyle after they stop working. A thoughtful retirement plan can ensure you have the resources to enjoy your hobbies, travel, and continue living comfortably.

Global View Insights: Sure, you can create your retirement plan; however, as your wealth grows, a Greenville CFP® specializing in financial planning can be a great resource. You want a comprehensive retirement plan that is unique to you versus something generic that may or may not address all of your financial needs.

Building generational wealth is about long-term planning that can benefit you and your spouse, future generations of your family, and the organizations you want to support. Planning for your legacy should be incorporated into your plan to distribute your assets when you are no longer here.

Following are some practical investment strategies that can help you build generational wealth and a legacy for your family:

• Investing in real estate can provide long-term value through appreciation and rental income. Real estate is often considered a cornerstone of wealth building, offering the potential for stable returns and passive income.
• Long-term investments in the stock market have historically provided positive returns. Starting early and investing consistently, even in smaller amounts, can lead to significant wealth accumulation over time.
• Be diligent about your savings efforts. The more money you set aside in savings and retirement accounts, like a 401(k) or IRA, the more time you have to compound your investment returns. Your savings rate will continue to be important, but when you have a critical mass of assets, your investment returns have a greater impact on your wealth accumulation rates.

• The longer you live, the more unexpected events you will experience. Managing these risks using various types of insurance, especially if you have dependents, can become increasingly important.
• Given how hard you’ve worked to accumulate wealth, you need a comprehensive estate plan that ensures your assets are distributed according to your wishes. Tools like wills, trusts, and health directives formalize this process. This is key to preserving wealth within the family and minimizing potential legal hurdles or conflicts after your passing.
• It may sound trivial, but teaching your children about managing finances, investing, saving, and responsible spending can empower them to continue building and maintaining the wealth you will pass on to them. 

Global View Insights: As Greenville fiduciary financial advisors, our family office services focus on providing a comprehensive suite of services tailored to managing and enhancing your family’s wealth and legacy. This includes sophisticated investment management and thorough financial planning. Tax, estate, and insurance planning is integrated into our generational wealth-building strategies.

As your wealth grows, so will your future tax liabilities, which is why tax planning shouldn’t be taken for granted. You need a well-thought-out strategy that minimizes your tax liabilities – now and in the future. This is where a fee-only financial advisor in Greenville, SC, can help you make decisions that significantly reduce your tax liabilities over time. 

Following are some of the more important reasons why having a year-round tax planning strategy is so important for your journey to financial independence: 

• Consistent tax planning allows you to identify all possible deductions and credits throughout the year rather than scrambling to combine all the pieces at year-end. This ongoing attention ensures you take full advantage of tax benefits as they arise.
• Major life events like marriage, the birth of a child, the loss of a spouse, or a change in employment status can affect your tax liabilities. Adjusting your tax strategies for these events allows you to make the right decisions as they occur.
• Planning your taxes all year allows you to manage uneven income more effectively. This can be especially beneficial for freelancers or business owners with fluctuating income levels, helping you avoid substantial payments on April 15th.
• Understanding the tax consequences of different investments can help you make smarter choices about where to put your money. Consistent tax planning can help you align your investment strategy with your financial goals while minimizing tax liabilities.
• Regular checks and adjustments to your tax plan can prevent the shock of a large unexpected tax bill or potential penalties at the end of the year.

Global View Insights: Incorporating tax planning into your routine financial wellness efforts reduces stress and supports long-term financial stability. It allows you to act on opportunities promptly and make adjustments that benefit your financial wellness.

Are you making the most of your financial potential? You only have one opportunity to get it right. Consider having regular reviews with a Greenville fiduciary financial advisor to ensure you’re on the right track to reach your financial goals. 

To gauge your financial health, start by examining your debt-to-income ratio. This is a simple comparison of your monthly debt payments compared to your gross monthly income. Keeping this ratio below 30% suggests that your debts are manageable. 

Next, consider your savings habits. Are you consistently setting aside money for emergencies and future needs? A good rule of thumb is to have an emergency fund that covers six months of living expenses.

Another key indicator is your credit score, which reflects your creditworthiness based on past borrowing and repayment behaviors. A higher score can help you secure loans with better interest rates and terms. 

Additionally, look at your budgeting practices. Are you able to cover all your expenses without consistently relying on credit? Effective budget management indicates that you’re living within your means.

Finally, consider your long-term financial goals. Whether saving for retirement, buying a home, or funding an education, having a plan and actively working towards it can significantly impact the pursuit of your more important goals for you and your family. 

Global View Insights: Regular reviews of your financial plan will help you make adjustments based on your needs and the pursuit of your goals, helping you make the right ongoing decisions.

Political change and election years can significantly impact the economy and, by extension, your wealth and financial well-being. With another presidential election on the horizon, it’s crucial to understand how the results may impact your investments: 

• Market Volatility: The markets don’t like uncertainty, which can cause volatility based on potential policy changes that impact various sectors of the economy differently. For instance, a newly elected official may propose new regulations for financial institutions or energy reforms that may impact the stocks of companies in those economic sectors.
• Interest Rates: We’ve seen interest rates and inflation rise over the past three years. The economic policies of each administration can influence interest rates. For example, if a candidate is expected to increase government spending, this might lead to higher interest rates, impacting everything from bond prices to mortgage rates.
• Long-Term Investments: New policies on taxes, trade, or government spending can shift the economic environment, making some long-term investments more or less attractive. This is particularly true in the U.S., which has a national debt of $34 trillion and is rising at a current rate of $1 trillion every 100 days.
• Consumer Confidence: Elections can influence consumer confidence, impacting economic growth and market performance. A confident consumer is likelier to spend and invest in stocks, bolstering economic prospects and potentially supporting higher prices for securities.
• Sector-Specific Impacts: Depending on the election results, specific sectors might anticipate additional benefits. For instance, renewable energy might flourish under a government that favors environmental policies, whereas traditional energy sectors might struggle.

Global-View Insights: In response to these factors, it’s wise to maintain a well-diversified portfolio and maintain a long-term perspective when managing your investments during an election year. Avoid making abrupt decisions based on short-term political developments, as these often do not affect the underlying value of public companies.

A fiduciary financial advisor is a professional legally obligated to always act in your best interests when providing financial advice or investing your assets. This means they must prioritize your financial goals and needs above their interests or any potential income they may earn from your assets.

Here’s why having a fiduciary advisor can be crucial for your financial wellness:

• All financial advisors are not fiduciaries. Knowing your advisor’s actions are governed by fiduciary standards can create a strong foundation of trust. You can feel more confident that the advice you receive is intended to benefit you and not your advisor’s income.
• You want a fiduciary advisor who will comprehensively review your financial situation, including your short-term and long-term goals, assets, liabilities, and values and preferences. 
• A Fiduciary advisor should be very open about how they are compensated for their knowledge, advice, and services. There can be layers of fees, and this transparency helps you understand any potential biases or conflicts of interest that affect the advice you receive.
• You want to work with a fiduciary advisor who is well-qualified and experienced in providing complex financial solutions. Since fiduciary advisors focus on what is best for you, their advice is often more tailored to your situation than you might receive from non-fiduciary advisors. This personalized approach can be particularly beneficial as your financial situation evolves and becomes more complex.

Global View Insights: We created Global View Investment Advisors to provide a better solution for you. Imagine working with an advisor who is truly free of conflicts of interest.

• Fee-only: We don’t accept commissions of any kind. This means we have no incentive to push particular products. We just give you the best advice for your situation. Instead of trying to sell you anything, we are your advocate in accumulating, preserving, and distributing your wealth.
• Fiduciary: We serve as your fiduciary, meaning we always agree to put your interests first. Not just morally. And we do it all of the time, not just part of the time when it is convenient.
• Independent: As owners/operators, we have no public shareholders or corporate offices telling us what to do with our clients’ assets. That means no pressure and no sales quotas. We only report to you.
• Investing Alongside You: We have skin in the game. This means we put our money into the same investments we recommend.