Financial Planning: The Big Picture Part One

Ask yourself the following question…

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 reach your goals by evaluating your whole financial picture, then outlining strategies that are tailored to your individual needs and available resources.  However, I have found that many individuals do not understand the importance of financial planning and specifically, the importance of sound, professional financial advice.

This piece is the first in a 3 part series on the importance of financial planning.  Each segment will be brief, yet contain information necessary for you to digest as you begin down the road to financial wealth and freedom!

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–for example, how saving for your children’s college education might impact your ability to save for retirement. Then 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 have the peace of mind that comes from knowing that your financial life is on track.

Why can’t I do it myself?

You can, if you have enough time and knowledge, but 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, saving you time and ensuring that all angles of your financial picture are covered.  Often, individuals will lack the experience to sufficiently formulate an effective retirement, business, or savings plan.  This can lead to less than desirable results.

In addition, topics such as annuities can be complicated and require the explanation of an expert.

The proper financial advice will not only help you to grow your assets, but also to protect them along the way.

Tune in Next Week for Part Two!

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