Do I Really Need a Financial Plan?

Do you have a mapped-out plan for your future?  Do you know the best steps to take to achieve your goals?  In a world in which 75% of America is winging it when it comes to their financial future, a holistic financial plan will set you ahead of the crowd.  Having a dynamic and workable financial plan helps you look at all aspects of your finances and project what things will look like on your current trajectory and if you make improvements.

With the help of a fee-only, fiduciary Certified Financial Planner™, you can have a 3rd party evaluate where you stand financially and help you set up realistic next steps to get you the direction you want to go to achieve the things you want to in life.

Examples of next steps you might receive include making sure you stay at a healthy spending level, saving the necessary amounts in the right types of accounts to prepare for retirement or future college tuition, getting estate documents updated to make sure you’re in control of your assets and body no matter the circumstance, and making adjustments to save on taxes.

A CFP Board 2012 survey found that over half of people with a holistic financial plan feel “very confident” about their financial picture vs. those who’ve never had financial planning completed.  And a 2016 study showed that simple online financial calculators are often wrong when predicting retirement readiness.

When Should You Have a Financial Plan Made?

If you have no plan in place, the best time for you to have one made is now.  It’s rare to accomplish a goal (and even more rare to accomplish multiple goals) without a plan of attack to get you there.

A financial plan is beneficial at any point in life, although the benefits can at times be more evident when preparing for major life events or going through life transitions.

Major life events that prompt one to seek a financial plan include the following:

Marriage Planning for children Planning to pay for college Receiving an inheritance Selling a company Purchasing a new home Divorce Retirement Death of a Spouse Claiming social security

Even if major life changes are not around the corner, financial planning will help you see if you are on the right path.  It’s like going to see the doctor.  You realize the need to visit a doctor when changes in your health occur.  But just as you should go see a doctor for regular health checkups because there could be something wrong you’re unaware of, financial checkups are also very important.

No matter where life has you, a financial plan can make sure you are reaching your peak financial fitness.

What Should You Do Once Your Financial Plan Has Been Created?

Once your financial plan has been made, monitor it.  This is the most important step!  We find that many clients who only have a financial plan created but do not move forward with an ongoing relationship with us typically do not implement all of the recommended changes, mostly because life is busy and the plan gets forgotten.

Having the regular accountability of a financial advisor is the best way to make sure you stay on track.

There’s no better time to start than now.