Your client regularly sees a doctor for checkups and diagnosis of their physical health. If an issue arises, they are referred to a specialist for further treatment.
Unfortunately, since most financial services companies are sales driven, rarely is the time taken to find out the total financial health of a client.
Debt - According to gobankingrates, in an article from September 19, 2014, the average credit card debt is $15, 263. The average mortgage is $147,591. The average student loan balance is $31,646. The average auto loan debt is $30,738. Little, if any, is left for saving.
College Costs - Public schools can now run $15 - $20,000 a year or more. Private schools now regularly exceed $30 - $40,000 a year.
Retirement Savings - Gone are the days of a good pension, supplemented by social security. More and more of the burden is falling on the individual's own savings.
Rising Cost Of Living - While we understand things cost more, rarely do we consider this in planning for our future. If a couple has an income of $50,000 a year, with a 3% inflation rate, in 20 years they'll need an income of $90,305 a year to have the same purchasing power as today.
Unexpected Loss - Your client's entire plan can be destroyed with the loss of income. Whether it's a disability, a major illness, or the death of a breadwinner, individuals need to protect against a loss.
NMP has partnered with Money Edge, to provide you a complete financial needs analysis software program. Easy to use, with up to fourteen modules for your use. At your discretion, you can allow your client to have online access, to update their information. You will be notified each time a client signs in.
Net Worth/Cash Flow - Helps you establish where a client is, and discover how and where their income is being spent. You now have the amount available to allocate to meeting your client's goals, and may find areas you can reduce spending, to increase available funds.
Emergency Fund - The unexpected will happen. It may be car repairs, home repairs, a new appliance, or a loss of a job. The more prepared your client is, the less additional debt will be incurred, and the less stress they'll face. Help them establish a systematic savings program to accumulate 3 - 6 months of their income.
Debt Management And Elimination - Consumer debt is one of the biggest obstacles to achieving a strong financial future. Show them a strategy to reduce, and eventually eliminate their debt, with little to no extra cash outlay.
Accumulate Wealth - The end game is to help your clients accumulate enough wealth to pay for long term goals like college education and retirement. This long term accumulation must strive to outpace inflation, limit taxation, and minimize loss. Help them identify their Financial Independence Number (FIN), and how much it will take each month to reach it.
Proper Protection - As your client builds their financial house, the most important aspect is the foundation. Loss of income due to disability, critical illness, or death can destroy the rest of the plan.
Preserve Wealth - Once your client reaches their accumulation goal, it's imperative they're able to get through retirement, without running out of money. For many, it will also mean properly protecting remaining assets from taxes, probate, creditors, etc.. Whether trusts, estate planning, succession planning, estate tax planning, or a guaranteed income for life, you will have the products to meet your client's needs.
NMP believes in education, not sales. We believe with all the facts, your client has enough common sense to know what's best for their family.
You may explore Money Edge at: www.moneyedgepro.com