The Power of Planning
A lot of people meet with an advisor to discuss their investments… and that’s it.
Although it is wise to talk about your investment returns, you may not be getting the most out of your advisor if that’s the only topic you cover. While some clients prefer a narrow scope—like limiting services to stock picking—fiduciary advisors are both willing and able to provide a much more comprehensive experience.
Financial planning is meant to be a well-thought-out, ongoing process. It isn’t something that gets wrapped up in a meeting or two. Hearing your advisor say, “Hey, let’s save more to your Roth IRA this year,” can be helpful, but it doesn’t account for the bigger picture. Creating a financial plan ensures that all your bases are covered. And if your advisor offers this service, why not take advantage of it?
You may be wondering: “Okay great, but what does a financial plan cost?”
At Aurora, financial planning is already included in the fee you pay for investment management and periodic consultations. In other words, you have the right to request a comprehensive financial plan at no extra cost.
Below are some of the core components that make financial planning so valuable—and, arguably, necessary.
Tax Planning
Have you ever met someone who jumped for joy because they owed the government money?
Me neither.
Effective tax planning helps keep more money in your pocket each year—and can even help lower your tax bracket in retirement. By coordinating your income and investments, your advisor can help you take advantage of tax credits, deductions, and optimal account placement.
For business owners, an advisor can also review entity structure (LLC, partnership, S-Corp, etc.) to ensure the most tax-efficient strategies are being used.
Insurance Planning
Is there a gap in your health insurance? Are you paying too much for homeowners’ insurance? Do you have enough life insurance?
These are common questions—though many people don’t even realize they should be asking them.
Every Aurora advisor is licensed to sell or advise on life and health insurance, and our team has trusted relationships with professionals across the insurance industry. We can conduct a full review of your coverage as part of the planning process.
Projecting Retirement Income
Investing without clear goals is like driving without a map.
Saving for retirement is one of the main reasons people seek financial advice—but simply labeling investments “for retirement” doesn’t help you understand how or when you can actually use that money once you stop working.
Key questions include:
When do you want to retire?
How much will you need to spend each year?
What will your portfolio likely accumulate to?
How much should you save now?
Which types of accounts should you be contributing to?
A retirement projection helps answer follow-up questions such as when to start Social Security, which accounts withdrawals should come from, and how much room you have for capital gains each year.
Though it may feel like a backwards process, starting with long-term goals and planning your way toward them is the most reliable approach.
Saving for College
Do you have a child or grandchild who may pursue post-secondary education?
If so, it's worth considering how that education will be funded. Paying tuition out of pocket can be overwhelming—or impossible. Student loans are an option, but they can burden young adults for decades.
Your advisor can help you plan efficiently by contributing to investment vehicles such as 529 college savings plans, which offer tax advantages and growth potential. While loans may still be part of the picture, providing even partial support can make a tremendous difference.
Estate Planning
Some people want to leave a legacy. Others simply want their money to go to people they like. Wherever you fall on that spectrum, estate planning matters.
Creating a plan for what happens to your assets can bring immense peace of mind. Whether your goal is to:
leave cash or property to your kids,
donate to charity,
keep a business in the family, or
arrange medical and financial decision-making,
your advisor can help coordinate your wishes. Aurora partners with local estate planning attorneys who prepare essential documents such as wills, Powers of Attorney, trusts, and medical directives.
The Bottom Line
An advisor who helps you build a thorough financial plan provides far more value than one who simply selects ETFs for your portfolio. A complete plan should include guidance on:
tax strategy
insurance
retirement planning
education savings
estate planning
debt management
investment strategy
risk tolerance
real estate decisions
business planning
Honestly, this blog could be ten pages long. While I could dive deeper into each topic, the best way to explore them is through your personal circumstances—because effective financial planning is always individualized.
So I’ll ask again:
If your advisor offers comprehensive planning at no additional cost, why not take advantage of it?
The Aurora team would be delighted to help you do just that.