Unfortunately, through the years the financial industry has distanced themselves further and further away from the people in the workforce. Full of Grace Financial is focused on working those underserved professionals to ensure they have a solid financial plan. We believe that we can provide valuable service to most households for less than 1% of their gross income, which typically equates to less than you are paying for streaming services or your cell phone bill.

Financial planning is looking at every aspect of your financial lives, including: investments, insurance, taxes, estate planning, etc. The scope of financial planning goes well beyond just your investments, as there are so many other variables to take into account to be sure your family is protected and on track to meet both short-term and long-term financial goals. Financial planning is the process designed to customize a plan for you that acts as a living and breathing document or roadmap, guiding you to achieve your financial goals and dreams.

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust. Meaning that when you sit down with your financial planner (advisor) they are providing you with recommendations and suggestions that embody what is best for you and your family, not trying to sell you some product or strategy that is going to line their pockets or pay them a handsome commission. Unfortunately, many financial professionals in today’s market hold themselves out to be a fiduciary, yet once they sit down with clients and prospective clients they are trying to sell them a product that may or may not be in their best interest.

You may or may not already work with a financial planner/advisor. If so, do you know how they get compensated? How are you paying them for their work? Is it commission based? Is it fee only? Is it a combination of the two? The financial industry often times makes it very difficult to see what and how you are paying the person or organization that is serving you. It is very important that you understand this so that you can determine if you are receiving true fiduciary advice, as well as deciding if the value you are being given is equal to the price you are paying.

The answer is…it depends! While “Roth” is the new buzz word in the investment world, the reality is that everyones’ plan is different, and there are a number of factors to consider when determining what elections you should make on your monthly investment contributions. For example, for someone whose income is extremely high during their working years, but expect their retirement income to be much lower, then using the pre-tax election might be the appropriate choice. However, for someone whose income in retirement may be equivalent or more than their working income, the Roth election might be more appropriate. The key point here is, that you should use the data from a financial plan to determine which option is best for your family, and the answer could be a combination of both “Roth” and “Pre-Tax” across the various accounts.