The Need for Financial Planning

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