Risk management reduces the probability and severity of an adverse event, usually some loss. It deals with threats at all levels, from personal to corporate. It requires a threat analysis to determine the probability of occurrence of an adverse event and, most notably, its potential severity. It’s about identifying risks and taking action to manage them for your and your family’s benefit. However, it can be hard to manage risk without the help of a professional. Fortunately, Nesso Wealth is here to simplify the process for you.
At Nesso Wealth, we’re a team of financial advisors in Connecticut that help our clients with comprehensive estate planning and risk management. One tool we use to help protect our client’s assets is a durable power of attorney. We have the experience and knowledge to help you plan for your family’s future and protect your wealth. Team up with us today and start taking control of your financial future. Fill out our form to schedule a consultation; we’ll connect you with one of our professionals as soon as possible.
Discussing Risk Management
A big part of estate planning is risk management. You must consider what could happen to your assets and loved ones if you become incapacitated or pass away. What would happen to your business? How would your debts be paid? Risk management is identifying, assessing, and taking steps to reduce or eliminate risks.
Throughout your life, you’ll accumulate different investments expecting them to grow over time. Your primary goal in asset management is to keep the value of your portfolio at the highest level possible, and you need to manage risk to do that.
Our Process
Getting To Know Your Portfolio
The first step in asset management is to understand what your portfolio consists of. We do this by reviewing your asset and liability records and looking at the value of different types of assets. This step is necessary to understand how much weight you currently have and the total amount of money you expect to earn over your life.
Assessing Your Goals
After we determine the scope of your assets, it’s time to set some goals; this will help us understand how much risk you’re willing to take on. We’ll also need to know what types of assets you’re interested in and the time frame for achieving your goals.
Diversifying Investments
Diversification is the next step in investment management, and it involves making decisions that benefit most of your portfolio. A diversified portfolio will have several types of assets within it. Since there will be less of a negative impact on your investments if one asset does poorly, diversification can help reduce risk.
Aside from managing your investments, it would help if you also had an estate plan. As we mentioned, it will allow your family to benefit from your assets after you’re gone. Nesso Wealth can help you develop an estate plan to protect your assets and minimize taxes.
Discussing Estate Planning
Estate planning transfers wealth and assets to beneficiaries in the most tax-efficient manner. It involves the creation of a will or trust and possibly an annuity. These legal documents allow you to specify how you want to distribute your property upon death. In addition, planning involves developing a strategy to protect your assets during your lifetime if you become incapacitated. You may also establish your medical treatment wishes through a living will.
Planning can be complex and requires expertise in several areas. It involves the combination of law, accounting, tax, and insurance planning. It can include selecting where you wish to live in retirement, what kind of lifestyle you want to lead and how you want assets distributed post-death. Nesso Wealth can help you answer these difficult questions and develop a comprehensive estate plan tailored to your unique needs.
Our Different Estate Planning Tools
Trusts and wills are quite common planning tools we use. With a will, you can name an executor to administer your estate and carry out your wishes after you pass away. A trust is a legal entity that can hold assets on behalf of beneficiaries. It allows you to earn income on investments and control the distribution. Trusts offer flexibility and help you minimize taxes.
These documents come in different types, and you can use them in many ways. They can help you avoid probate, a process that requires court oversight and control over the disposition of assets. Choosing a financial advisor familiar with your state’s rules, laws, and regulations is essential. At Nesso Wealth, we know the ins and outs of estate planning in Connecticut and can help you navigate the process. We have expertise in several disciplines, including accounting, taxation, and risk management.
Understand Our Durable Powers Of Attorney
In Connecticut, the durable power of attorney is a legal document that gives a person the legal authority to act on another person’s behalf. The term durable describes the length of time the management will be effective. In most instances, this power lasts for one year. The one-year term has been accepted by most courts as the maximum time limit to act in your best interest. However, there are exceptions to this rule. For example, the testator may revoke the power of attorney document at any time.
The durable power of attorney is only effective if signed by the person who has given it to you. Its purpose is to allow you to act as the person’s agent. It will enable you to administer assets, pay bills and manage other financial affairs. The principal signs the document, and the person who will act on behalf of the principal is the agent. For the power of attorney to be effective, the principal must establish the agent’s identity by providing a signed copy of the document. The agent must also sign the power of attorney before they can act on behalf of the principal.
If you need advice on selecting the right agent for your durable power of attorney, we can help. We can also assist you in deciding how much control to give the agent and what specific tasks they’ll be responsible for. Establishing the ideal period for the document is another area where we can provide guidance.
Benefits Of Our Powers Of Attorney
The most important aspect of a power of attorney is that it limits the agent’s ability to those mentioned explicitly in the document. The agent is only legally allowed to exercise their powers when given explicit instructions by the principal. In addition, a power of attorney limits the time the agent may act on behalf of the principal. The documents’ conditions help guard against abuse and ensure that the agent doesn’t act contrary to the principal’s wishes.
Tasks A Durable Power Of Attorney Can Handle
The powers of attorney we create can help you with many different tasks, including:
- Managing your investments
- Paying your bills
- Filing your taxes
- Buying or selling real estate
- Making gifts on your behalf
- Creating or modifying a trust
- Handling your bank accounts
- Applying for government benefits
- Operating your business affairs
As you can see, a durable power of attorney gives the agent a great deal of responsibility. At Nesso Wealth, we can help you select the right person for the job and guarantee that they have the experience needed to handle your affairs.
Our Services
Financial Planning
Our financial professionals will work with you to develop a financial plan based on your short and long-term goals. It may include strategies that focus on retirement planning, wealth creation, estate organization, and more.
Retirement Planning
Your financial plan will include a retirement savings plan. A balanced portfolio, tax-deferred accounts, and individual retirement accounts (IRAs) are different ways to prepare for retirement. This life stage is a crucial time for an individual and their family. A financial plan will simplify pursuing your retirement goals and provide confidence as you age.
Estate Planning
This planning process can involve creating wills, trusts, powers of attorney, and more. When you pass away, your family will have access to the assets you accumulated during your life. Your estate plan will ensure that they receive what is rightfully theirs.
Investment Management
Your financial plan will include investments in a variety of different asset classes. Therefore, you need the services of professionals like us to assist you in this process. When making investment recommendations, we’ll consider your goals, risk tolerance, and time horizon. When you work with Nesso Wealth, you’ll receive a comprehensive financial plan and investment strategy.
Tax Planning
This option involves working with one of our advisors to create a tax-efficient financial plan. It will help you pay less in taxes and ensure that your assets continue to grow. We can plan tax through a sound investment strategy, such as investing in tax-sheltered assets and other tax-efficient options.
Gain A Team Of Risk Management Professionals In Connecticut
At Nesso Wealth, we’re dedicated to assisting Connecticut clients with the wealth management process. We’re your partner in planning and ensure you have the plan to meet your needs. We can structure a financial plan that includes the creation of a durable power of attorney as a way to manage risk. If you’re looking for comprehensive wealth management services, contact us today. We’ll be happy to help you work toward your financial goals.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.
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