After all, you have different demands on your money at various stages of your life. Personal financial planning helps tie those individual goals together. ![]() When you think about your goals for the years ahead, you'll work through several stages to hit your targets. Often, a financial plan is made up of many different projects. The best way to think about a financial plan is to start with your current financial situation and then consider the conditions that are likely to arise in the future. The nature of your financial plan depends on your needs. What Is a Financial Plan?Ī financial plan can be as simple as a household budget or as complex as a multi-generation estate plan. It can help you solve money problems you've gotten into and avoid those problems in the years ahead. Financial planning is how people of all income levels and life stages control their money and create a better future for themselves and their families.Ī financial plan can help you balance your current needs and future goals. Ask for a projection of your retirement savings to determine whether you're on track for your age and life stage.You might think that financial planning is something only wealthy people do. Consider different scenarios in your plan to see what levers you can pull to achieve your goals more quickly. Your advisor will likely use a wealth-planning tool to help you visualize your financial well-being. Come prepared with a list of questions, and be sure to share your financial priorities and concerns. Schedule a face-to-face meeting with your financial advisor to discuss your situation and create a plan. There are likely opportunities to improve your financial wellness or accelerate some of your goals. ![]() Rebalance your portfolio of investments so your asset allocation is properly positioned for your risk profile and investing timeline. It's important to have some cash reserves, but consider putting your excess cash to work. When inflation is high, cash and similar investments (such as money market funds) will normally yield negative returns. Having the right asset allocation-i.e., the way in which you divide your assets among stocks, bonds and cash-is particularly important during times of market volatility. To do this, you'll need to gather and review your personal and financial data, including savings and investments-and don't forget about your retirement account and Health Savings Account balance. Paying for your education or your child's educationĪfter you've identified your goals, the next step is to determine your current status.Consider ranking your goals by level of importance and investing timeline. While it's important to set realistic targets, it's also important to dream a little. Start with the end in mindīegin the process by reviewing your goals and objectives. That's why, just like medical checkups with your doctor, it's important to check on your financial wellness on a regular basis, as well.įocusing on these five steps as part of the checkup process can help you build a solid financial foundation now and for years to come: 1. ![]() Whether it's due to challenging market conditions, unexpected life events, general uncertainty about your preparedness for retirement, or any other factor, it's normal to be concerned. If you're feeling anxious about your finances, you're not alone.
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