Do you envision owning a new home, starting a business, or enjoying a comfortable retirement? Each of these financial goals comes with its own price tag, and that’s where financial planning becomes crucial.

Why is financial planning important?

A comprehensive financial plan helps you organize your financial picture and provides a roadmap for achieving your goals. It allows you to balance competing priorities and see how saving for one goal, like your children’s education, might impact others, such as retirement savings. With a clear plan, you can prioritize your goals, implement tailored strategies, and choose appropriate products and services, ensuring your financial life is on track.

The Financial Planning Process

Creating a solid financial plan involves several steps and typically requires the expertise of various professionals:

1. Assess Your Current Financial Situation: Review your income, assets, liabilities, insurance coverage, investment portfolio, tax exposure, and estate plan.
2. Set and Prioritize Goals: Define your financial objectives and establish timelines for achieving them.
3. Develop Strategies: Address current financial weaknesses and leverage your strengths.
4. Select Products and Services: Choose those that align with your goals.
5. Monitor and Adjust: Regularly review and update your plan as needed.

Key Professionals Involved

• Financial Planners: Oversee your overall plan and coordinate other experts.
• Accountants/Tax Attorneys: Offer guidance on tax issues.
• Estate Planning Attorneys: Assist with estate management and asset transfer.
• Insurance Professionals: Evaluate insurance needs and recommend solutions.
• Investment Advisors: Advise on investment options and portfolio management.

Your Role

You are the most important member of your financial planning team. Your needs and objectives drive the process, and you will make the final decisions based on professional recommendations.

Why Not Do It Yourself?

While you can manage your finances independently, developing a comprehensive plan often requires expertise in multiple areas. A financial professional can provide objective advice, save you time, and ensure all aspects of your financial picture are addressed.

Staying on Track

Your plan should be reviewed at least annually and updated for significant life changes or economic shifts. Key events that might trigger a review include:

• Changes in goals or time horizons
• Life events like marriage, childbirth, health issues, or job loss
• Immediate financial needs, such as drafting a will or managing a retirement account distribution
• Significant changes in income or expenses
• Underperformance of your portfolio
• Economic or tax law changes

Common Questions About Financial Planning

• What if I’m too busy? Start planning as soon as possible to maximize your options.
• Is it complicated? The complexity depends on your individual situation, but financial professionals aim to simplify the process and address all your questions.
• What if my spouse and I disagree? Financial professionals are trained to mediate and help find common ground.
• Can I still control my finances? Yes, you make the final decisions. Financial professionals offer recommendations based on your needs and goals.

For tailored guidance and to navigate your financial future effectively, consider working with a financial planner who can help bring your goals into focus and create a plan that works for you.

IMPORTANT DISCLOSURES: This article does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials.