Financial Plans are for Everyone

Financial Plans are not just for the wealthy anymore. A comprehensive financial plan, with a wealth management company (see this page), can benefit you, no matter what your income level is. It is an invaluable tool that everyone needs to have. Why is having one so important?

1. Set Your Goals

Even if you do not consider yourself wealthy, a financial plan is valuable because it will help you set goals and lay the groundwork necessary to increase your wealth. These goals should be thought out and put in place for every stage of your life, not just when you are nearing retirement. Some goals you may want to plan for are purchasing a home, having children, paying for college, retiring early, or purchasing a vacation home. Whatever your goals are, a financial plan will help you to effectively reach them.

2. Create a Realistic Timeline

Once you have your goals in place, your financial planner will be able to help you create a realistic timeline for reaching those goals. They will factor in all aspects of your finances to calculate a reasonable timeframe in which you will be able to reach your goals without over-extending yourself.

3. Bring Your Spending Inline

Once you have your goals and your timeline set, you will need to bring your spending in line so you can reach those goals. Whether that means charging less on your credit cards or cutting down your daily Starbucks intake. Your financial plan will highlight the changes you need to make to succeed.

4. Sufficient Saving

Besides the need to bring your spending in line, a financial plan will highlight any deficiencies in your saving habits. It will also highlight the savings goals that you need to meet to reach your financial goals successfully and on time.

5. Investment Allocation

A financial plan will calculate your risk tolerance and help you to invest your money in a way that follows that tolerance. Your financial planner will also assist you in properly allocating your investments. This means that they will help you to spread your money throughout several different types of well-performing investments. By spreading your money out in this way it will maximize your profitability and protect you from the possibility of losing all of your money at once. Your financial planner may also be able to suggest alternate investment ideas that you are not currently aware of. Their intimate knowledge of the industry is there to benefit you and your future. For people investing in construction, it may help in getting their VA home loans.

6. Proper Amount of Insurance

Your financial planner will also help you find out if you are properly insured. They will take your average spending amounts as well as large future expenses you expect your family to incur, such as paying for college. Based off this calculated amount they will be able to find the proper insurance coverage for you. This may mean that you will need to purchase additional coverage or you will need to reduce your current coverage.

7. Using Employer Benefits to the Full

Employers offer many different types of employee benefits, from health insurance to 401(k) plans. Your financial planner can help you to utilize these benefits to the full. It may mean that you need to sign up and start contributing to an employer-sponsored retirement plan, or you simply may need to reallocate the funds inside your 401(k). Sometimes the smallest changes have the potential to help you generate additional money without having to work more hours.

8. Planning for Your Assets After Death

A financial plan helps you to control what happens to your money while you are still alive, whereas an estate plan helps you to control what happens to your money when you die. A revocable living trust will protect your heirs from the lengthy and expensive probate process, as well as give you a high level of control. Like a financial plan, an estate plan is something that no one should find themselves without.

These are just a few of the numerous benefits to having a financial plan. If you are interested in learning more meet with a local financial planner. They can highlight the process and give you in-depth details in the benefits of creating a financial plan.

Interested in learning more, or want to schedule an appointment? Contact Portland Financial Advisors | Carson Wealth Management.