Market Beat: building a team of advisors | SierraSun.com

Market Beat: building a team of advisors

Ken Roberts
Market Beat

It's very important to get good advice when planning for your financial future. You should strive to build a team of advisors that can help guide you when making difficult decisions that could have a significant impact on your future finances.

Your financial advisor should be able to work with your legal and tax advisors in your best interest. Another advisor that you'll need is a competent insurance advisor. Insurance is needed for your health, home and auto, but there are other types of insurance that can be quite effective planning tools.

One type of insurance that most people should consider is known as a liability umbrella policy. For a relatively small annual premium, it's possible to obtain some good liability protection in the event you are ever involved in an accident or someone gets injured on your property. We live in a highly litigious society today, and you should take some steps to limit your risk.

Life insurance is something almost everyone should have, too. Life insurance provides an immediate estate that is not too expensive for younger, healthy people. It can also be quite effective as an estate- planning tool for individuals with significant assets, as it can provide some good leverage for paying estate taxes.

Health insurance is required under current law, but most people have some pretty good options in the type of plan they select. High deductible plans that are HSA compatible allow you to invest in a health savings account that is similar to an IRA, and can be used to supplement your retirement in the future if not needed for medical expenses.

Annuities can be good planning tools as well. An annuity can provide a lifetime income that you can't possibly outlive that is backed by the credit worthiness of the issuing insurance company. I have personally worked with clients who used annuities as part of their estate planning. In this case, they were concerned about leaving a large lump sum to a young beneficiary who might be irresponsible with the funds and instead opted to leave them a lifetime of income through the use of an annuity.

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The key to making good financial decisions is to educate yourself and work with a team of trusted advisors. Investment advice and sound tax, legal and insurance advice is all very important.

Kenneth Roberts is a Truckee-based Registered Investment Advisor. Information is at his blog at http://www.sellacalloption.com or 775-657-8065. The mention of securities should not be considered an offer to sell or solicitation to buy investments mentioned. Consult your investment professional to understand the risks and/or how the purchase or sale of these investments may be implemented to meet your investment goals. Past performance is no guarantee of future results.