Financial planning is unique for each person; no two financial plans look the same because everyone’s life and personal goals are different. Regardless of what your goals are, financial planning can help you work towards achieving them. One of the most significant benefits of financial planning is that it gives you the confidence to stay on track towards your goals or make changes to pursue them.
Financial planning examines your current financial situation by assessing your budget, debt management, savings, retirement planning, insurance, and estate planning. The first year of financial planning may be more complex since your marital status, assets you own, income, health, financial literacy, employee benefits, number of children, and future retirement income are all factored into your plan. A financial plan can’t guarantee protection from unexpected life events, but it can help you create a blueprint to achieve these eight things:
1. Establish an emergency fund
An emergency fund is money saved in an account to use during financial stress to help improve economic security.
2. Create a budget
A budget estimates income and expenses for a period, such as a month.
3. Reduce debt
Whether you owe a few thousand or hundreds of thousands of dollars, paying off debt can lead to less financial stress and financial security.
4. Save money
Saving money can help prepare you for future goals and expenses and help protect you from financial emergencies.
5. Improve your tax situation
A financial plan can help illustrate how tax-advantaged investment strategies may reduce your tax bill.
6. Save for retirement
A financial plan can help illustrate retirement savings projections based on an assumed rate of return to help you determine if you are on track or need to revise your plan.
7. Save for your child or grandchild’s education
Including education savings in your financial plan can help you estimate how much you need to save to reach your education funding goal.
8. Save for other financial goals
Whatever your goal, a financial plan can help you work towards having the finances to achieve it.
An experienced financial professional can help guide you through the financial planning process by providing advice in several areas of your financial life. While every financial professional has their unique strengths and specialties, they can also help you:
- Determine if you’re on track with your goals
- Provide a second opinion
- Evaluate your investment strategies and implement new strategies
- Assess your risk tolerance and time horizon to align with your goals
- Rebalance your portfolio
- Manage roadblocks that can impact your finances- job loss, divorce, etc.
Talk to us today
Now that you know what a financial plan is and what it can help you achieve take the next step and schedule a financial planning meeting with a financial professional today.
