5 Ways to (Finally) Kickstart Your Financial Plan

Planning for a long retirement often brings up questions: How can I ensure my nest egg lasts? Am I on track to meet my goals? The first step is checking in on your retirement savings to see if the amount you’re saving is on pace to provide financial stability in retirement.

This is where a Financial Advisor can provide valuable insight. If you’re on track, a Financial Advisor can help you identify ways to improve returns without magnifying risks. If you’re off track, your Financial Advisor can help you determine why. For example, are you maximizing contributions to an employer-sponsored retirement plan or individual retirement account (IRA)? If the answer is yes but you are still not hitting your goal, a Morgan Stanley Financial Advisor can look at how your savings are invested and, using the latest research, reassess your investment strategy. 

Are you confident that your portfolio is set up to meet your goals?  Whether you’ve been making the investment decisions for your household up until now, or you’re wondering how to get started, a Financial Advisor has access to tools and services that can help ensure your portfolio is keeping you on track toward your long-term financial goals.

Your Financial Advisor will evaluate the level of potential return needed to achieve your goals, the amount of risk you’re willing to take in your investments and your time horizon, among other factors, to help ensure you have an appropriate asset allocation (i.e., mix of stocks, bonds and other types of assets) in your portfolio. They can also help select securities or funds in each of these asset classes.

Together, you and your Financial Advisor may also explore new investment opportunities. For example, are you interested in the latest industry innovations? Supporting environmental and social causes? Your Financial Advisor can help identify the right types of investments given your individual goals, so that your investments support what’s important to you.

Also remember that your financial goals and risk tolerance will evolve over time, so your Financial Advisor will work with you to revisit your portfolio and adjust where necessary. 

Taxes can act as a big drag on your portfolio. But did you know tax-smart investing techniques may potentially add up to 2% to your annual returns? Strategies like tax-loss harvesting, income smoothing and certain approaches to giving to loved ones and donating to causes you care about, may help you keep more of what you potentially earn. However, these strategies can take time and are often highly complex. A Morgan Stanley Financial Advisor has access to special tools, resources and thought leadership on changing tax policies to help you implement such strategies, so you don’t have to.

It may be difficult to think about what happens after you’re gone. Having a well-thought-out estate plan can help alleviate your worries about the future. With the help of a Financial Advisor, you can take steps to plan how your assets will be distributed to your loved ones and charitable causes after your death so you don’t have to navigate the process alone. 

For example, a Financial Advisor can guide you as you work with your legal team to outline your wishes for distributing your assets and stipulate the care of any minor children in a will. A Financial Advisor may also help you set up a trust to hold assets for a beneficiary or walk you through the crucial process of designating beneficiaries for your retirement accounts and insurance policies so that these assets go directly to the individuals you’ve named.

By taking these steps with help from your Financial Advisor and legal counsel, you can help ensure your legacy is preserved according to your wishes, providing a sense of security and certainty for the future.

Preparing for your parents’ future, as well as your own, can be a crucial part of financial planning. This is a significant responsibility that requires careful thought and planning—and is often top-of-mind for women. In fact, women are more likely to focus on the costs of elder care compared to men (86% vs. 75%) when working with financial professional, according to Morgan Stanley’s 2021 Investor Pulse Poll of High Net Worth Women.

One of the first steps you can take is to sit down with your parents and a Financial Advisor to discuss their estate plan. This conversation should include discussions about a will, healthcare directives, long-term care and power of attorney. Having these discussions early on will not only help your parents outline their wishes; it can eliminate uncertainty around any medical and financial decisions you may need to make on their behalf.

These discussions may be difficult, but they are necessary. By taking the time to understand your parents’ desires, you can help ensure that their later years are as comfortable and as stress-free as possible.