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The Six Key Points of Our Process

1. Seek to Maximize Employer Benefit Plan

Today’s mindset needs to be comfortable with the fact that our current paycheck is necessary to help fund a sound retirement plan. Taking advantage of 401K plans or other company sponsored retirement plans available is important.  One big difference today is that we have to make the choice to reduce our paycheck to make contributions for tomorrow. The more we reduce and put back, the better chance to maximize a steady cash flow in the future.

At Parsons Financial, we work with each client in seeking to maximize their employee sponsored retirement plans. Our goal is to help each client transition to retirement by creating their own personal plan for a lifetime of income. For clients currently employed, we explore the various ways to save for retirement. For clients already retired, we explore the strategies for seeking to enjoy a steady income designed to last a lifetime.

2.  Analyze Debt Reduction Opportunities

At Parsons Financial, helping clients become debt free is a major goal. We constantly analyze various debt reduction strategies. For example, it is common knowledge not to use your 401K plan to pay off your house. But, what if an analysis from your CPA or other tax professional said otherwise? The bottom line is that we will work hand in hand with your tax professional to help you make a good decision. If you do not have anyone to work with, do not worry. Through our work in this community, we have developed many relationships with tax professionals who would be glad to help.

3.  Maintain a Constant Amount of Ready Cash for Emergencies

Many call it an “Emergency Nest Egg”. Others call it their “Cushion”. Whatever name you choose, each conveys the importance of maintaining a constant amount of ready cash; a calculated amount available at anytime. Having too much emergency fund money might mean you’re not maximizing the potential of your earnings. Having too little may mean other assets will need to be liquidated in the event of an emergency. Of course, it is better to have too much ready cash than too little. The amount needed is a very personal issue and varies with each individual. At Parsons Financial,  we help our clients determine a proper amount to maintain.

4.  Monitor Insurance Needs

Our need for various types of insurance coverage changes at different stages in our lives. The insurance industry is constantly changing as well. At Parsons Financial we monitor our clients insurance needs. From Life Insurance to Long Term Care Insurance, we work to stay on top of our clients coverage to make sure they have protection where it is needed. Money can be wasted if the need for good coverage is not monitored on an ongoing basis. On the other hand, lack of proper coverage can be devastating.

5. Manage Your Investments

At Parsons Financial, we align ourselves with professional money managers possessing a similar belief that personalized investment portfolios should have a little bit of everything, but not too much of one thing. We embrace money managers who have a track record of effectively using traditional investments like stocks and bonds, but, who also incorporate more non-traditional investments like commodities, precious metals and Real Estate Iinvestment Trusts (REITs). We partner with managers that understand that the static “buy and hold” strategy is not always the best choice. Therefore, we work with managers that understand when a more “tactical” approach is necessary.

6. Estate Planning

We work in conjuction with your legal team planning the proper disposition of your assets.  If you don't currently have a legal team then we may be able to recommend some prominent law firms in your area.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Stock investing involves risk including loss of principal.

Bonds are subject to market and interest rate risk if sold prior to maturity.  Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Tactical allocation may involve more frequent buying and selling of assets and will tend to generate higher transaction cost.  Investors should consider the tax consequences of moving positions more frequently.

The fast price swings in commodities and currencies will result in significant volatility in an investor's holdings.

Investing in Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors.  There is no assurance that the investment objectives of this program will be attained.