Financial Planning

Incorporating financial planning into your personal finances can help you prepare for retirement, pay for college for your children and live a higher quality of life. Good financial planning puts you in control of your income and expenses to maximize your wealth. Learn more about some of the steps you can take toward identifying, setting, and achieving your financial goals, or simply taking your finances to the next level.

What is Financial Planning?

Financial planning involves approaching your finances with a purpose. Asking questions like, “where do I want to go?” “How do I get there?” “Why is this important?” are all part of the financial planning process. If you don’t know what you want out of your finances or even life, it is unlikely that you will feel any sense of accomplishment no matter what path you take. Financial planning is a lot like planning an adventure.

When you want to get somewhere, what is one of the first things you do? Get out a map! Next, you might make a list of things you will need along the way, and you might take note of anything that may present an obstacle. One very important step on a journey is enlisting the help of an experienced guide. All of these are parts of financial planning or, one could say, a successful financial journey.

We want to help you identify where you want to get to and how you can get there. We believe that part of the journey is enjoyment. That is built into our process as one of our core values. Our process hinges around our motto that health, wealth, and happiness make up the trifecta of all good things. If your financial journey isn’t ensuring that your health and happiness are in tow, we are doing something wrong.

Here are some considerations to keep in mind on your financial planning journey:

Consider your needs and obligations at each life stage

We don’t just set you up on a plan and let it run. We know that we have to reevaluate along the way, especially with regard to the various stages of life we all go through. You will want to ask some key questions:

How long do I have to pay off my mortgage?
How will my monthly living expenses change over time?
What other expenses will crop up?
When will my children and grandchildren become financially independent?
Do I need money for long-term care?

Consider All of Your Resources

Income is a main consideration of what you will save over time, but investments are also part of financial planning. There is risk in every journey, but diversification helps mitigate that and lets you grow your money in ways a savings account can’t. Warren Buffet said:

“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”

We can help you understand the various options you have for saving and investing.

Create near, medium, and long-term goals

Keep in mind that you will have different types of goals for the immediate future versus your long-term future. When making goals keep the acronym SMART in mind, as follows:

How do your goals align with these guidelines? Here are a few examples of clear goals for personal finance:

Short – Save $5,000 for retirement each year for the next five years.
Medium – Save $50,000 for your child’s college education within the next 10 years.
Long – Donate $20,000 to your favorite charity upon your death.

Financial planning provides structure to your earnings, investments, and spending. It also makes it easier to achieve the goals you set for yourself.

Plan for the unthinkable

There are a number of ways to protect yourself and your family against unexpected tragedies and events, including the following:

Tip: A fee only financial planner will shop around for the best insurance and investment products to protect and grow your wealth. This is in direct contrast with financial planners dedicated to specific companies.

Consider tax implications

Tax planning is a crucial subset of financial planning. Without the right guidance, you could be giving up vast sums of income during your lifetime and subjecting your estate to probate and other taxes. Therefore, tax mitigation is a critical part of your financial planning process. We want you to make the most of your hard-earned money.

Financial Planning Pros and Cons

The pros of financial planning include the following:

The cons of financial planning include the following:

Working with a professional financial planner can make the process easier and help you make sound decisions for yourself and your loved ones.

Hire a Financial Advisor Today!

If you’re looking to achieve your financial goals and objectives, now is the best time to draft your financial plan. Contact us to learn more about creating a solid financial plan for a happier and healthier life.