Services That Financial Groups Commonly Offer

23 April 2020
 Categories: Finance & Money, Blog

Financial groups are businesses that specialize in helping people and organizations make wise money-related decisions. There are many ways these businesses help others with money matters. Here are some of the more common services that financial groups often offer.

Financial Planning

Financial planning broadly refers to money strategies that help people reach their financial goals, whether that's to purchase a home, pay for a child's college, retire at a certain age, or something else. The strategies that financial planning employs are usually focused on long-term goals, but some of these may be mid- and short-term goals for certain individuals.

When strategizing to meet a specific goal, the scope of financial planning includes everything from contribution calculations and asset choices to tax strategies and withdrawal projections. Typically, these items are reviewed periodically as an investment progresses, and adjustments are made when necessary.

Business Succession Planning

Business succession planning focuses on how a business, which is typically a family business, can be wisely passed onto the next generation. 

This sometimes includes highly delicate topics, like which child should receive how much of the business and when the current owner ought to give up control of the business (both of which can be emotional). The planning also involves tax strategies to help keep the business and profits in the family.

Employee Benefits

Some financial groups are set up to administer employee benefits, which may include a range of insurance and financial products. 

On the insurance side, financial groups that also offer insurance can help with group health insurance, flexible spending accounts, and COBRA continuation coverage. A group that offers these services can normally also assist with group disability and group life insurance if a business wants to make those available as benefits.

On the financial side, financial groups can assist with Section 125 Cafeteria plans (which are education-focused accounts), 401(k)s, 403(b)s, and more.

Estate Planning 

Estate planning is like business succession planning in that it helps pass on valuable assets to the next generation, but estate planning doesn't focus on a family business. Instead, this aspect of a financial group's work looks at how to best pass on personal assets.

Most estate planning focuses on two items. First, it looks at how to best pass on assets so that heirs can promptly inherit them with minimal taxes taken out. Second, the planning uses strategies to reduce the risk that assets must be used to pay for expensive end-of-life care. 

To learn more about financial business, talk to a financial group.