The Importance Of Fundamental Financial Planning
Corporate executives and business owners tend to spend very little time proactively tending to their personal tax and financial affairs. Most of their time and focus is spent managing the affairs of their company, and not planning or strategizing for the benefit of their own personal financial goals. Many make one-off decisions, made in a vacuum with little regard to integrating the various aspects of their financial lives. Although some executives have accountants, lawyers and stockbrokers assisting them with their affairs, there may be little coordination of the tax, legal and investment components into one cohesive plan. Part of the challenge is that advisors tend to be focused in a relatively narrow area of expertise relative to a family’s broader financial management needs. Worse yet, it sometimes is further complicated when the objectivity of an advisor is diluted by how they are compensated. These conditions tend to divert attention from the singlemost important aspect of managing personal finances – fundamental financial planning.
Michael Maglio is a Managing Director in the Madison, New Jersey office of WTAS. Maglio concentrates on integrating tax and financial planning to create long-term strategies for his clients.
The Metropolitan Corporate Counsel (September 1, 2011)View the article on metrocorpcounsel.com