The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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www.fueloilnews.com | FUEL OIL NEWS | jaNUary 2015 25 BUSINESS OPERATIONS By RichaRd deMaRco, JR. and apRyl cowpeR, UBS Financial SeRviceS inc. T rying to accomplish wealth management goals without a financial plan is like trying to navigate without a map: you may arrive late or even miss your destina- tion. By providing an integrated view of your personal and financial goals—not just your investment portfolio—a plan can help you see where you are today, think about where you want to be in one, ten or even twenty years, and provide ideas on how to pursue the future you envision. aNaLyzE yOUr NEt WOrth Once you tally your current assets and liabilities, you can better assess the likelihood of meeting your financial goals. This is also the first step in ensuring your approach is thor- ough and organized. For example, we may identify assets that could be consolidated, such as "orphaned" 401(k) accounts at former employers or assets that you may not own yet, such as unvested equity compensation and deferred compensa- tion. It's important to note how your assets are held, whether in your name alone, jointly (with a spouse/partner, child, etc.) or even in a trust. QUaNtIFy yOUr cOSt OF LIvINg When planning for your future, it's important to know whether or not you're saving and investing appropriately toward your retirement lifestyle goals—and also for the pos- sibility of unforeseen events. If you keep a budget of your current expenses, you can begin by reviewing what goes out on a regular basis. Look at other planned expenses and then begin to consider what your future costs might include, such as healthcare for yourself or eldercare for an aging parent. EStabLISh Or bOLStEr aN EmErgENcy FUNd Your emergency fund should cover at least six months' worth of necessary expenses. Keep the fund in safe, liquid form, such as assets in a bank account, money market account or short- term certificates of deposit. rEvIEW yOUr aSSEt aLLOcatION With your goals in mind and a thorough picture of your assets and liabilities, you need to design or update your investment strategy to one that allocates assets across various asset classes and takes advantage of opportunities in the market at a given time. And as your needs change or the market moves, adjust your investment approach accordingly. PrOtEct yOUr aSSEtS We've noticed that many clients neglect to adjust insurance cov- erage as their lives change: If you've recently completed home improvements or reno- vations, update your homeowners' insurance policy to reflect your home's increased value. If you've added a pool, hired household staff or your children have started to drive, check that you have adequate umbrella coverage to protect against possible litigation in case of accidents. If you've had a child or experienced an increase in salary or compensation, check the level of income replacement on your life insurance and disability policies. One rule of thumb suggests you should plan to replace five to seven times (or even 10 times) your annual salary, but much depends on your lifestyle, family size and income. Long-term disability insurance is also important if you're relatively young. You could experience severe hard- ship if you cannot work due to illness or an accident. If you're over 50 years old, consider buying long-term care insurance now while you're healthy, as these policies can become more expensive once you retire. You can also explore policies that include inflation protection to account for rising healthcare costs in the future. UPdatE ImPOrtaNt dOcUmENtS If anything significant has changed in your life—such as a new child or grandchild, marriage or divorce (yourself or your children) or receipt of an inheritance—be sure to update your personal documents, such as your will or trusts, living wills or powers of attorney for property or healthcare. It's also wise to regularly review beneficiary designations on retirement accounts and insurance policies. Remember, with a solid plan in place it's easier to feel more confident about your future. We'd be happy to work with you to develop a financial plan that helps ensure you achieve your goals. Similarly, if you meet certain require- ments, you can make penalty-free IRA withdrawals, called 72(t) payments, prior to age 59½. We can consult your tax advisor to find out if you qualify for a 72(t) withdrawal and get guidance on calculating distribution amounts. Richard DeMarco, Jr., first vice president-wealth manage- ment, is an experienced financial services professional since 1998. Apryl Cowper, senior registered client service associate, is a professional in the financial services industry since 2000. With more than 150 years of wealth management expertise at its core, and drawing upon an integrated mix of investment banking and asset management businesses, UBS focuses on providing relevant guidance, differentiated global perspectives and diverse strategies and solutions for private, corporate and institutional clients worldwide. pursue the Future you envision l F O N