CALL US AT (804) 285-7333

U

Nov 15, 2020 | Financial Planning, Q&A

Why do I need a financial plan?

Mother and daughter looking at a financial plan
A “good” financial plan is one that is custom to your needs and will create a road map to help you achieve your goals. Depending on your situation, your plan can focus on a few life goals or provide a more comprehensive plan addressing your entire financial situation. Once your plan is created, it is a good idea to review it annually (at minimum) to ensure you are on track and able to adjust when necessary.

An additional benefit to the financial planning process is that it uncovers (in greater detail) exactly how much risk you can / should take and what level of return is required to achieve your goals. This is highly beneficial to our advisors when analyzing your investment strategy.

WHAT IS OFTEN ADDRESSED IN A FINANCIAL PLAN?

A financial plan should be detailed and thorough in order to address your specific situation and goals. Common questions our plans address include (but, are not limited to):

  • How long will my assets last during retirement? (If not retired already, also: when can I retire?)
  • Am I taking the right amount of risk with my portfolio to reach my goals?
  • How are my social security, pension, and medical insurance going to affect my finances in retirement?
  • Is my estate plan complete and up to date?
  • Am I able to buy a vacation home or spend money on costly trips while still having enough to meet my other goals?
  • What can I set aside for philanthropy efforts and gifting to family?

HOW DOES THE PROCESS WORK?

Our financial planning process generally starts with a questionnaire. The more information you provide, the more comprehensive and accurate your plan will be. During this process, we ask that you rank goals in terms of their importance to you. Having this information, and knowing what you hope to achieve from the planning process, allows our team to focus on your key areas of concern. Once the plan is complete, our team (including your advisor) will review the details with you, making adjustments as necessary.

Questions? Contact our team to learn more.

Author: Kevin Riley | Wealth Management Advisor
Written: November 15, 2020