Financial Planning: Helping You See the Big Picture

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Do you picture yourself owning a new home, starting a business, or retiring comfortably? These are a few of the financial goals that may be important to you, and each comes with a price tag attached. That’s where financial planning comes in. Financial planning is a process that can help you target your goals by evaluating your whole financial picture. This results in a complete picture of your needs and available resources from which a strategy can be developed.

Why is financial planning important?

A comprehensive financial plan serves as a framework for organizing the pieces of your financial picture. With a financial plan in place, you’ll be better able to focus on your goals and understand what it will take to reach them.

One of the main benefits of having a financial plan is that it can help you balance competing financial priorities. A financial plan will clearly show you how your financial goals are related. You will understand how saving for your children’s college education might impact your ability to save for retirement. Most importantly, you can use the information you’ve gleaned to decide how to prioritize your goals, implement specific strategies, and choose suitable products or services. Best of all, you’ll know that your financial life is headed in the right direction.

The financial planning process

Working with financial professionals to create and implement a financial plan allows you to:

Develop a clear picture of your current financial situation by reviewing your income, assets, and liabilities. Next you should evaluate your insurance coverage, your investment portfolio, your tax exposure, and your estate plan.
Establish and prioritize financial goals and time frames for achieving these goals
Implement strategies that address your current financial weaknesses and build on your financial strengths
Develop products and services that are tailored to help meet your financial objectives*
Monitor your plan, making adjustments as your goals, time frames, or circumstances change

Common financial goals

Common financial goals include:

Saving and investing for retirement
Saving and investing for college
Establishing an emergency fund
Providing for your family in the event of your death
Minimizing income or estate taxes

Some members of the team

The financial planning process can involve a number of professionals.

Financial planners typically play a central role in the process, focusing on coordinating the activities of other professionals who have expertise in specific areas. Financial planners typically have responsibility for the entire plan.

Accountants or tax attorneys provide advice on federal and state tax issues.

Estate planning attorneys help you plan your estate, giving advice on transferring and managing your assets before and after your death.

Insurance professionals evaluate insurance needs and recommend appropriate products and strategies.

Investment advisors provide advice about investment options and asset allocation which is used to manage your investment portfolio.

Your needs and objectives drive the team and you are the most important member of the team. Therefore, all decisions lie in your hands, after you’ve carefully considered the team’s recommendations.

Why can’t I do it myself?

You can, if you have enough time and knowledge. However, developing a comprehensive financial plan may require expertise in several areas. A financial professional can give you objective information and help you weigh your alternatives. They save you time and ensure all angles of your financial picture are covered.

Staying on track

The financial planning process doesn’t end once your initial plan has been created. At least once a year you should review your plan to make sure that it’s up-to-date. After that, you should modify your plan to encompass changes in your personal circumstances or the economy. Here are some of the events that might trigger a review of your financial plan:

Your goals or time horizons change
You experience a life-changing event such as: marriage, the birth of a child, health problems, or a job loss
You have a specific or immediate financial planning need (e.g., drafting a will, managing a distribution from a retirement account, paying long-term care expenses)
Your income or expenses substantially increase or decrease
Your portfolio hasn’t performed as expected
You’re affected by changes to the economy or tax laws

Common questions about financial planning

What if I’m too busy?

Don’t wait to begin the planning process until you’re in the midst of a financial crisis. The sooner you start, the more options you may have.

Is the financial planning process complicated?

How complicated the process will be depends on your individual circumstances, since each financial plan is tailored to your individual needs. But no matter what type of help you need, a financial professional will work hard to make the process as easy as possible, and will gladly answer all of your questions.

What if my spouse and I disagree?

Work with a financial professional who is trained to listen to your concerns and identify any underlying issues. This will help you find common ground.

Can I still control my own finances?

Financial professionals make recommendations, not decisions. You retain control over your finances. Recommendations will be based on your needs, values, goals, and time frames. Therefore, you decide which recommendations to follow, then work with a financial professional to implement them.

If you are not sure where to start, or have additional questions, please ask and I will respond promptly.

*There is no assurance that working with a financial professional will improve investment results.

Prepared by Broadridge Investor Communication Solutions, Inc. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. 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. We cannot assure the accuracy or completeness of these materials and the information in these materials may change at any time and without notice.

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