* It is all good advice. Good advice for someone, in some situation, which may or may not be YOUR situation.
If you have ever had a baby or young child, you have probably received advice. Unsolicited advice. After being on the receiving end of parenting advice, I realized something. All of it was good advice, but maybe it was for a kid at a different age or stage. Or a kid with a different temperament.
It’s the same with financial advice. You have probably received unsolicited advice, such as these conflicting tips:
- Refinance your mortgage OR take out a second mortgage OR pay off your mortgage.
- Don’t sell your company stock for two years OR sell all your stock right away.
- File for social security as early as possible OR file as late as possible.
Financial planning is inherently comprehensive, and advice may draw on several, interrelated factors. These factors can include your family composition, goals, tax situation, and near-term plans. Developing financial advice requires looking at how these different parts of your life and finances may be impacted. Consider these two examples:
- If you expect to relocate in 3-5 years for your job or to be closer to family, how does that influence paying off your mortgage?
- For a couple with a higher-earner and a lower-earner, how does the timing of the higher-earner taking Social Security impact the lower-earner?
Abacus Financial Planning collaborates with you to ask the right questions and build a tailored financial plan.