Having a financial plan puts you on a clear path to meet your future goals, giving you the confidence and support you need to get there. By working with a wealth advisor on creating a financial plan today, you will be better prepared for your future, tomorrow.
Here are five reasons why you should prioritize financial planning.
1. It gives you a complete picture of your finances
A financial plan assesses the entirety of your finances. Through the process of creating a plan, your wealth advisor will review your investments and discuss retirement planning, tax strategies and options for managing debt to make the necessary changes for a more successful outcome. Additionally, your advisor can help identify possible issues and speedbumps that could affect your plan, whether that’s higher inflation rates, long-term healthcare expenses, or unexpected market corrections.
2. It’s more than a budget
One common misconception about financial planning is that it’s just a budget, which is not the case. A financial plan helps you identify and prioritize your financial goals and tracks your progress. Wealth advisors often have access to tools that can simulate multiple future scenarios and outcomes and determine if you’re on track to reach your goals.
3. Starting earlier is better
It’s never too early to start financial planning. A wealth advisor’s job is to help you reach your desired outcome, and the best way to do this is with time. It’s best to begin planning while there’s still time to adjust. Starting earlier gives your advisor time to assess your financial situation and help you meet your goals within your desired timeline.
4. Identifying your financial goals now will set you up for greater success
Speaking of your desired outcome, it helps to come prepared with specific goals when you meet with your advisor. Do you want to purchase a second home, pay for your grandchild’s college education, or make a significant charitable contribution? Your financial plan should be specific to your personal goals, and knowing what you want to achieve will make it much easier for your wealth advisor to create a custom plan for you.
5. Conducting annual check-ups keeps you on track to meet those goals
Depending on your situation, it’s recommended that you meet with your wealth advisor every one to two years. This allows you to discuss life changes that have occurred since you last spoke, which might mean altering the plan you have in place. These changes could include a variety of life events, such as a change in health status, addition to the family, loss of a family member or new goals that have become important to you.
Financial planning can help set you up for future success by taking a long-term view of your entire financial picture. It’s never too early to start, so reach out to your wealth advisor today and prioritize your financial future.
Investments involve risk and may lose value, including possible loss of principal. Non-deposit investments are not insured by the FDIC or guaranteed.