Last updated on October 20th, 2024 at 03:33 pm
You already go to doctors you trust, what about other professionals you should know? You should have a relationship with an attorney, CPA, Real Estate Agent, and others. This discusses the reasons for establishing a professional team with individuals you know in advance of your need. Don’t wait until there is a crisis or when you need professional advice to search for professionals. It’s time to create your professional support team.
Life has many challenges, but most of the time you make the right decisions e.g. filling up your car before it runs out of fuel. In this case, you have a subscription with a towing company such as AAA. Essentially a backup plan for the unexpected. There are other reasons you need to expand your backup plan into a real-life plan complete with experts to help guide you along.
In this blog and podcast, we will explore the various talents you need to amass to be well-protected and be prepared for changes. Some changes come without notice, others are long-term changes you have the luxury to plan for. The professionals listed here are just a few to get you started along this path.
Attorney
Every adult should have a will, many should have a revocable living trust. If you have children, estate planning is even more important. Who will take custody of your children should something happen to you? Where will your estate go when you pass? You should seek out a good family lawyer who can work with you to create a family plan for your estate and loved ones.
Percent of U.S. Adults with wills and trusts
- 18-34 years old: 24%
- 25-54 years old: 27%
- 55 and older: 45%
- 72 and older: 81%
Should you own a business, you should seek out an attorney who can help you with your business should there be bumps in the road. Creating a business entity for your rental property is essential. That limited liability company may save your assets. Establishing a relationship will cost you nothing. Arrange to meet with an attorney, the first consultation is usually free. The attorney will have you sign a representation agreement. In the event they are needed, you are already represented.
Even if you do not need an attorney at this time, it’s a good thing to ask around for a reference. Arrange to meet with an attorney or attorneys depending upon your situation. Should you be sued or become involved in a situation requiring representation, you know who to call. What happens if you are arrested for something? Will you look for lawyers’ cards on the jail wall? No, you already have an attorney.
Insurance Broker
Some people buy insurance over the Internet and never see an insurance broker. That’s ok until you start expanding on the types of insurance you need e.g. auto, home, motorcycle, boat, motor home, etc. It’s a good thing to meet with a broker at least on the phone. If you need someone you can call anytime and get quick answers. Knowing a broker to call for your insurance needs makes that person a key member of your professional team.
A good example. Your homeowner’s insurance is expiring in three days, you just found that the mortgage company did not receive the bill. At this point, you need quick action. You call Sam Smith your insurance broker and tell him to get the policy issued and have the mortgage company pay it or charge it on your credit card. You need someone you have a relationship with who you know will act quickly.
Your auto policy is renewing and the cost is higher than you think you should pay. Call Sam Smith and ask him to shop for you. Sam may come back with a lower rate. If Sam tells you it’s a good rate based on his survey of other companies, you are well served. You can work with someone on the phone and the internet but get a name, someone you can call back, not a call center in another country.
The Professional Support Team Contact List
| Professional | Name | Phone Number |
|---|---|---|
| Insurance Broker | ||
| Attorney | ||
| CPA (Certified Public Accountant) | ||
| Financial Advisor | ||
| Real Estate Agent | ||
| Banker | ||
| Business Consultant | ||
| Marketing Specialist | ||
| IT Specialist | ||
| Health Insurance Agent | ||
| Estate Planner | ||
| Personal Assistant | ||
| Contractor/Handyman | ||
| Other |
Print the list above after you have filled it in. Use the Print Screen function (MAC shift/command/4) (PC Prt Scr key)
Real Estate Agent
You may ask why a real estate agent is included. The reason should be obvious but if not, I will explain. If you live in your own home, you may need to know the value of your home for estate planning purposes. Perhaps you are thinking of adding a swimming pool to your home and wonder what that will do to the value. It may be time to do some remodeling, you wonder if your choices are consistent with what others are doing because you will sell in a few years.
Real estate agents do much more than sell properties. Agents are a resource to their clients. Many agents maintain a list of their former clients or prospective clients informed about a variety of topics via email. Some of the information they convey is very useful. I periodically send out information on social media to my neighborhood about current property values because people want to know.
When you are ready to sell your home, you have already built a relationship with an agent, and you call and get started. Some people do a long search for the best agent, that’s good but do it well before you expect to sell. Should you desire to buy a home in another state, search for an agent in the area you are interested in and start a relationship. Sign up on their website and stay connected. Even if the process is over a few years. Trust me, most real estate agents will be pleased to help you well in advance of a sale or purchase.
Certified Public Accountant (tax prep and more)
Many people can prepare your income tax return. Frankly, the process has become so simple since 2018 that a large portion of the population can do their return without assistance. Should you have assets, a business, trusts, and other more complicated issues, you should have a CPA doing your tax return.
CPAs do more than just tax returns and can be an important member of your professional team. Mine provides financial advice. I use him as a sounding board. When I think I know what I want to do, I will ask what he thinks. On occasion, he provides an important kernel of wisdom that I was not aware of. Your CPA will be familiar with wills, trusts, inheritance, and other special tax situations. A qualified CPA borders on a financial advisor. Your CPA should be able to refer you to a good financial adviser should you require one.
Tax preparers should not be confused with a CPA. More often, the IRS will bypass a tax return prepared by a CPA and audit one prepared by a tax preparer. Using a CPA improves the odds that your tax return will be done correctly. If you have a small business or rental property you should start your search for a CPA soon. CPAs and attorneys work well together on special issues.
Financial Advisor
There are two types of financial advisers. A fiduciary and a non-fiduciary. There is an important distinction between the two. Starting with a non-fiduciary, person usually works for a vendor offering a financial product(s). Usually, these can be insurance policies or they are affiliated with an equities brokerage. This means that they are compensated through a portion of your earnings on the financial instruments that they advise you to buy.
A fiduciary is an advisor who presents you with a bill for services. You can pay monthly, yearly, or one time. They earn 100% of their income directly from you and not from any investments that they recommend. I prefer this type of financial advisor because they have no relationship with the investments they recommend. They must by law owe their allegiance to you the client, not to their employer.
If you have a large portfolio you may want to consider a financial advisor. If you have a 401k and perhaps an IRA and are still working, you may not need one if your employer offers assistance through their program. At this point, you only have a few choices in the plan and the plan administrator can assist you with your selections. If you want to invest in equities outside of a retirement plan it may be time to consider adding this professional to your team. Ask for referrals, and do your homework before entrusting your assets to a stranger.
Handyman
In the first writing of this article, I left off a very important team member. The handyman is a key member of your professional team. Everyone needs one because things fail. If you have someone you can call, it will save you money. Better yet, when things are getting older the handyman can plan on replacement or repair in advance saving you even more money.
Ask around and find someone who can work on almost everything. Ask their opinion if you need to hire a specialist such as an electrician for a big job. Your handyman should be able to help you find someone to do the job.
Mentor
Find a mentor, someone who has become successful on their own. A person whom you admire, someone who has worked smart and hard to get where they are. This person can be someone at work who is above you in the pecking order. I started working for a large corporation early in my career. A senior manager spent time coaching me because we clicked. As he was promoted, he brought me along.
I did not know about mentoring until I realized one day that this was exactly what the relationship was. I worked smart and hard, which made his recommendations look good for him. It was a professional relationship of mutual respect and I emulated many of his decisions. Well before he retired, he introduced me to another person who stepped into his shoes. That person helped my career as I boosted his. I learned a great deal from these two individuals which have served me well over the years.
Find a mentor who can help you advance your career. If you want to start your own business, meet someone who has done that and become successful. Learning from that person can save you time and money and lead to a rewarding relationship. The mentor in the end may be the most valuable member of your team of professionals.
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