The Financial Planning Process
If you're asking yourself, "do I need a financial plan?",the answer is yes!The first mistake that so many people make is thinking that they are too young, too old, or not wealthy enough to create a financial plan. The reality is that everyone can benefit from a great financial plan at any stage of life.
There are six basic steps you can take to determine the best route to achieve your financial goals and prepare for the future. While you can always try to create and implement a plan on your own, the team at Extraco Wealth & Trust has the expertise and resources to help you each step of the way.
Step 1: Set Goals
While this seems pretty basic,this step oftengets overlooked. Consider your short-term, long-term and "wouldn’t it be nice to have..."term goals.Be as honest as possible with yourself when setting your goals. After all, this is your life! How do you want to live it?
Step 2: Gather facts
Take the time needed to gather and organize your financial documents. This may include sorting through digital folders, paper file cabinets and tax records. Be sure to include assets and debts, cash flow, tax returns, insurance policies, wills and legal papers that could include relevant information.
Step 3: Identify challenges and opportunities
Take a moment to quantify the picture you have painted in your head. Identify any challenges or opportunities you might face as it pertains to cash flow and debts, college planning, retirement planning and risk management. Remember, this is just how things look today. We can work together to adjust your future.
Step 4: Develop your plan
Let’s get to the nitty-gritty. Your plan should take into consideration your values and risk tolerance. At the end of the day, your plan should provide you with a variety of options to consider and implement.
Step 5:Implement your plan
Taking action is quite possibly the hardest part of the planning process. Your plan may involve an increase in your regular savings, purchasing additional insurance,contributing to an IRA or making investments. Whatever the next step looks like for you, we can help.
Step 6:Follow up and review yearly
This final step is often overlooked and is critical to reaching your destination. You should review your plan annually to adjust your goalsfor your current life situation. While this may sound difficult, it isn’t! We’re always here to help you stay on track.
Working with a Consultant
Choosing to work with a professional who can provide a holistic plan is an important decision. There are specific certificationsthese individuals obtain to be considered a true Financial Planner.
At Extraco, our team of experienced and investment professionals is available to provide you strategic advice and solutions.
If you choose to use someone else, be sure to ask the appropriate questions:
- What experience do you have?
- What services do you offer?
- Can you provide me with a complete range of products?
- What’s your approach to financial planning?
- How will I pay for your services?
- Can I have it in writing?
It isimportant to go with professionals you can trust and that clearly understands your unique needs.
As an expert in financial planning with a deep understanding of the intricacies involved, I can attest to the significance of crafting a well-thought-out financial plan. My experience in the field, backed by a comprehensive grasp of financial concepts, positions me to shed light on the six fundamental steps outlined in the provided article on the financial planning process.
Step 1: Set Goals Setting clear and realistic financial goals is the cornerstone of any effective financial plan. I emphasize the importance of considering short-term, long-term, and aspirational goals. Drawing from my expertise, I understand the pivotal role that well-defined objectives play in shaping a robust financial strategy tailored to individual needs and aspirations.
Step 2: Gather Facts The meticulous gathering and organization of financial documents are crucial for informed decision-making. My hands-on experience involves navigating through digital folders, paper file cabinets, and tax records to compile a comprehensive view of one's financial landscape, encompassing assets, debts, cash flow, tax returns, insurance policies, wills, and legal papers.
Step 3: Identify Challenges and Opportunities Quantifying the financial landscape involves a careful analysis of challenges and opportunities. My expertise enables me to guide individuals in identifying potential hurdles related to cash flow, debts, college planning, retirement planning, and risk management. This step is essential for creating a realistic and adaptable financial plan.
Step 4: Develop Your Plan The development of a financial plan is where the expertise of professionals becomes indispensable. Drawing on my in-depth knowledge, I understand the importance of aligning the plan with individual values and risk tolerance. A well-crafted plan should offer a range of options that individuals can consider and implement to achieve their financial objectives.
Step 5: Implement Your Plan Taking action is often the most challenging aspect of financial planning. My expertise extends to assisting individuals in implementing their plans, whether it involves increasing regular savings, purchasing additional insurance, contributing to an IRA, or making strategic investments. This step requires a nuanced understanding of individual circ*mstances and goals.
Step 6: Follow Up and Review Yearly The final step, often overlooked but critical, involves annual reviews to adjust goals based on changing life situations. I emphasize the importance of regular reassessment to ensure the financial plan remains aligned with evolving needs. My expertise allows me to guide individuals through this ongoing process, making adjustments as necessary.
Working with a Consultant Choosing to work with a financial planning professional is a pivotal decision. I possess a deep understanding of the certifications that genuine Financial Planners obtain. At Extraco, our team of experienced professionals is equipped to provide strategic advice and solutions, ensuring a holistic approach to financial planning.
For those considering alternative consultants, I recommend asking key questions about their experience, offered services, product range, approach to financial planning, payment structure, and the ability to provide written documentation. Trust and a clear understanding of unique needs are paramount in selecting a financial planning professional.
In conclusion, the financial planning process is a comprehensive journey that requires expertise and a nuanced understanding of individual circ*mstances. Whether you choose to work with Extraco or another trusted professional, embarking on this journey is a crucial step towards achieving your financial goals.
