A financial plan is a process that helps determine where you are financially today and what you want for your financial future. It is a roadmap of what you need to do to achieve all of your financial goals and objectives. It is designed to help you make more informed decisions about what you spend, save or invest.
A financial plan is a custom-tailored strategy that takes into account your income, assets, liabilities as well as your values, dreams, wants and needs. A financial plan can help you:
- Make informed financial decisions
- Minimize the taxes you pay
- Strategize your investment portfolio
- Plan for your retirement
- Plan for specific expenditures
- Transfer the assets of your estate to your heirs in the most efficient and tax effective way
It is important to understand that a financial plan does not stay current. It will become outdated with changes in your goals and objectives, tax laws and other personal economic circumstances. Everyone can benefit from having a financial plan and it is not just for those that have a lot of money to invest.
It is always advisable to work with a Certified Financial Planner to ensure that your financial plan remains current and in line with your priorities, objectives and goals.