There are a number of reasons people do not have financial plans, but two of the most common are 1) they don’t believe they have enough in cash and other assets and/or 2) they are overwhelmed by the perceived complexity of the financial planning process. In fact, financial planning is not reserved only for the wealthy and Mensa-smart.
Regardless of your financial picture, you should have a plan because none of us can know what life may throw at us and what risks we may encounter. What happens if you die too young and leave your family with a mountain of debt? How will you survive if you outlive your retirement income? If you become disabled for an extended period of time, will you be able to afford the often expensive long-term care?
The overriding question is: can you afford not to cover yourself and your family and protect them from the known and unknown risks you may face in the future? A well thought-out financial plan with an experienced, qualified financial advisor can help deal with some of the potential hurdles you may run into during your life’s journey. Being prepared is half the battle.
When constructing your financial plan, include your family members. They will have their needs to be considered and they can be supportive of your financial goals, if they understand what they are and how they fit into the “Big Picture.” Look at your debt, cash flow v. expenses, college tuition needs, ability to save, medical issues, taxes, and future plans or dreams, including large purchases, such as buying a home. Look at the immediate and long-term aspects of your unique situation with your financial advisor.
Everyone should consider the importance of a financial plan, which serves as a roadmap to help avoid or minimize some of the risks ahead. Your financial counsellor is in business to help take some of the risk out of living.
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About the author: About Ronald Bernheim, the owner of Financial Freedom Wealth Management Services, in Chatsworth, CA. He offers a free, no-obligation counseling session to determine whether a financial review or comprehensive plan is indicated. Interested parties may call (818) 626-9498 or e-mail firstname.lastname@example.org or visit the website at www.ronaldbernheim.com.
Disclosure: All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: California, Arizona, Florida, Washington