In a phrase, 'A financial planner can simplify your life'. As you move
through life, chances are your income is going to rise. And at the same time,
you find it harder to save. Investments look riskier than ever, tax laws seem
complicated and you are getting bombarded by financial sales pitches. Unfortunately,
the busier and more successful you are, the less time you have to sort out your
financial affairs.
Is there a solution? Yes. The financial planner. A planner's primary goal is
to help you 'Breathe Easier'® about your financial life. To help you map out
your goals and consolidate all aspects of your financial life into one
coordinated plan.
You start the process by making basic decision about your current needs and
objectives. Setting goals is important and the financial planner can help
clarify your objectives and set priorities.
During the fact gathering phase the planner will cover your investment
portfolio, review your insurance policies, examine benefits provided by your
company and analyze your household budget. Creating a list of your specific
goals, like funds a child's education or what will happen if there is a death
or disability, will be the foundation of your overall financial plan.
One of the most common questions asked in the planning process is: 'Will I
be able to afford to retire'. The financial planner will walk you through
various senarios based on how much you can save each year and how much you will
need to live off in your retirement years. Questions that will be discussed
could be: Where do you plan on living in retirement? Do you plan on moving into
a larger home before retirement? If you are going to pay for a child's
education, what kind of school will they attend? What investments are you most
comfortable with and which would you prefer to avoid? Do you want to leave
anything to your heirs or do you want to use all your assets in retirement? And
so on, and so on….
There are several ways a financial planner will provide you with a financial
plan. Whether orally or in a hard document, the planner will 1) Summarize your
goals and objectives; 2) provide current and projected net worth statements or
balance sheets; 3) do a tax analysis; 4) create projected cash flow
requirements; 5) do an investment analysis and recommendations; 6) project
progress towards retirement and other goals; 7) discuss insurance related
issues; 8) give personalized recommendations on any other goals; and if
requested give an estate planning analysis.
Once the plan is delivered, the planner can help you with implementation. Discussing the benefits of tax-deferred compounding and the diversification of assets across multiple areas, is part of the on-going relationship with your financial planner. The planner can help you choose the items which are most suitable to your goals and risk tolerance and help you make your investment purchases.
After implementation, you should be meeting with the financial planner on a
regular basis. If you point the ship in a certain direction, you want to make
sure it is staying on course. Life changes and new life events can change
aspects of your previous plan, so regular updates from your financial planner
could be needed. And let's not forget that at any time the expanding
complexities of the financial markets and changes in the tax law will confront
you with new questions for your financial planner that need answers now.
If you are not working with a financial planner, contact one of the
Certified Financial Planners here at oXYGen Financial today.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
