What did we do before GPS?
On our summer vacation, we just entered the address of our destination into my phone, hit go and like magic, Toots -the name the children gave to the navigator voice, directed us turn by turn to our destination, using the fastest route, avoiding traffic delays along the way, and if we chose could even help us avoid paying tolls along the way. Wouldn’t it be great if planning your financial life was just as easy? Sorry. So far there is no app for that…
Finding the best route on your Financial Roadmap
Figuring out how to pull your finances together and make a sound financial plan can be daunting at first. But working with a CFP® professional can help you design a plan -like a roadmap for a secure financial future, as well as some tips for protecting your money.
What’s the most expensive thing you’ll ever buy in your lifetime? The answer probably isn’t a big-ticket item like a new TV, car, college education or home. When you put money into a retirement nest egg, you’re “buying” your retirement. Given Social Security’s uncertain future, longer life expectancies and decreasing employer contributions, planning for this major expense is more complicated than it was a generation ago. You can afford to retire comfortably if you develop a solid plan and make smart choices along the way. But to start, you have to know your number.
Today, there are an overwhelming number of choices for saving and investing your money. Creating a robust, realistic plan will help you stay on track to have the retirement you want. Regardless of your income, or how much you have saved so far, a CFP® professional can help you calculate your net worth, avoid financial setbacks, deal with major life changes, avoid debt and credit problems, Decide where to put your money to maximize savings, minimize the tax bite out of your savings, reduce potential risk to your financial plan.
Here is a list to make sure you consider.
You are ultimately in charge of your finances, and the results you get from depend on your commitment and understanding of the process. Working with a CFP® can help you set measurable financial goals, understand the effects of each financial decision and hopefully find the best route to a sound financial future.
John A Davidson, CFP®
KylesHill Financial Planning
Finding the best route on your Financial Roadmap
Figuring out how to pull your finances together and make a sound financial plan can be daunting at first. But working with a CFP® professional can help you design a plan -like a roadmap for a secure financial future, as well as some tips for protecting your money.
What’s the most expensive thing you’ll ever buy in your lifetime? The answer probably isn’t a big-ticket item like a new TV, car, college education or home. When you put money into a retirement nest egg, you’re “buying” your retirement. Given Social Security’s uncertain future, longer life expectancies and decreasing employer contributions, planning for this major expense is more complicated than it was a generation ago. You can afford to retire comfortably if you develop a solid plan and make smart choices along the way. But to start, you have to know your number.
Today, there are an overwhelming number of choices for saving and investing your money. Creating a robust, realistic plan will help you stay on track to have the retirement you want. Regardless of your income, or how much you have saved so far, a CFP® professional can help you calculate your net worth, avoid financial setbacks, deal with major life changes, avoid debt and credit problems, Decide where to put your money to maximize savings, minimize the tax bite out of your savings, reduce potential risk to your financial plan.
Here is a list to make sure you consider.
- Start planning as soon as you can. The earlier you begin, the more likely you are to achieve your financial goals. By developing good financial planning habits such as saving, budgeting, investing and regularly reviewing your finances, you will be better prepared to handle emergencies and life changes.
- Take charge of your financial life. Be sure you understand the financial planning process. Provide all relevant information about your financial situation. Ask questions about the recommendations offered to you, and play an active role in decision-making.
- Be specific. Create targets for what you want to achieve and when you want to see results. Everyone wants to be "comfortable" in retirement and see their children attend "good" schools—but what do you mean by comfortable and good? Clear goals are easier to aim for and measure. Don’t be afraid to put specific $ amounts on your goals.
- Be realistic in your expectations. Financial planning cannot change your situation overnight—it’s a lifelong process. Remember that events beyond your control, such as inflation or changes in the stock market or interest rates, will affect your financial planning results.
- Remember, each piece of your financial life is part of a larger puzzle. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or a decision about your child’s education may affect when and how you meet your retirement goals. Your financial decisions are interrelated.
- Re-evaluate your financial situation periodically. Financial planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your financial plan as time goes by so you stay on track to meet your long-term goals.
You are ultimately in charge of your finances, and the results you get from depend on your commitment and understanding of the process. Working with a CFP® can help you set measurable financial goals, understand the effects of each financial decision and hopefully find the best route to a sound financial future.
John A Davidson, CFP®
KylesHill Financial Planning