| Building a successful financial plan can | | | | accumulation goals. |
| be confusing. As we construct a plan, we | | | | - Retirement; taking action today to |
| find that our financial lives have many | | | | insure that the later years are as |
| scattered pieces, like a puzzle. | | | | comfortable and worry-free as possible. |
| The pieces of that puzzle, the major | | | | - Estate Planning; recognizing that |
| financial issues they represent that | | | | death is inevitable and planning for the |
| each of us can expect to face during our | | | | ultimate transfer of our assets to our |
| lifetime, include: | | | | heirs. |
| - Cash Management; more than just | | | | A coordinated financial plan provides |
| balancing the checkbook, cash management | | | | the framework for achieving financial |
| includes preparing and, most | | | | security. There are steps to achieving |
| importantly, following a budget, using | | | | this financial security and these steps |
| our credit wisely, and keeping the | | | | in solving financial problems in today's |
| income tax burden to the lowest level | | | | world, take work. Two basic steps are |
| possible. | | | | involved: |
| - Risk Management; there is risk of loss | | | | - Step 1 Choose Your Financial Planning |
| of both life and property. Health | | | | Team; in our complex, ever-changing |
| insurance can help pay the cost of | | | | world, expert help is needed. Trained |
| needed medical care. Disability | | | | professionals such as your attorney, |
| insurance can protect against the loss | | | | CPA, IRS enrolled agent, life insurance |
| of a person's ability to earn a living. | | | | agent, health insurance agent, |
| Critical illness insurance can afford | | | | securities broker, and financial planner |
| some protection from expending reserved | | | | are generally members of your team. |
| financial resources due to an unforeseen | | | | - Step 2 Develop Your Plan; with the |
| major illness. Life insurance can be | | | | help of your team, the second step can |
| used to protect a family against the | | | | be taken, that is, the development of a |
| risk of premature death. Property and | | | | systematic, integrated plan for dealing |
| casualty insurance can protect our | | | | with the puzzle and the steps that |
| worldly goods against accident and such | | | | address your financial security. |
| perils as fire, flood, earthquake and | | | | This is called developing a financial |
| theft. | | | | plan. You can choose to ignore these |
| - Accumulation Goals; we all need to | | | | problems until it is too late; or you |
| save money for some reason. Educating | | | | can take steps to put the puzzle |
| our children is one very common goal. | | | | together and achieve your financial |
| Buying a home and building an investment | | | | security. The most important step is the |
| portfolio are two other typical | | | | first one. |