5 Ways a Financial Plan Can Improve Your Outlook
Most people realize the importance of saving and investing for the future, but only 32% of Americans have a written financial plan in place to help them prioritize their goals and track their progress.1
If you’ve been putting off establishing a financial plan, you may want to reconsider. Following are five ways a comprehensive financial plan can help improve your financial outlook.
#1 – A financial plan serves as map to guide you toward achieving your financial goals.
One of the benefits of creating a personal financial plan is that it identifies and prioritizes your goals and objectives. Achieving major goals such as planning for retirement, paying for a child’s college education, making a large purchase, paying down debt, etc. requires focus and determination. A financial plan can guide your decision-making and coordinate the various elements of your financial life to help ensure they’re working together toward achieving your goals.
#2 – A financial plan can help you feel more confident about your future.
A study conducted by Charles Schwab indicated that 54% of people with a financial plan feel confident they’ll be able to reach their financial goals, yet only 18% of those without a plan have the same level of confidence.2
Creating a comprehensive financial plan to guide your decision-making can be a big step toward helping you feel more confident and in control of your financial future.
#3 – A financial plan can assist in protecting your family and managing your risk.
A comprehensive financial plan not only helps you build wealth but can also help you protect it. If not properly planned for, risks such as a medical emergency, an accident, a lawsuit or a natural disaster can quickly jeopardize everything you’ve worked so hard to accomplish.
A thorough and well-designed financial plan will include personalized insurance and asset protection strategies to help protect your wealth and loved ones from unexpected risks.
#4 – A financial plan can guide your investment strategy.
Without a financial plan in place, it can be difficult to determine whether your investment strategy meets your ever-evolving needs and goals. Instead, a well-crafted plan recognizes that your investments play a crucial role in supporting you as you navigate the different stages of your financial life.
By having a financial plan in place, you can implement long-term investment strategies that allow you to take advantage of opportunities during periods of volatility while also protecting your assets against loss during market downturns.
#5 – A financial plan can assist you in leaving a financial legacy.
If your goals include leaving a financial legacy for the people and causes that matter most to you, it’s important to have a proper plan in place. Incorporating estate planning as part of your overall financial strategy can help ensure your assets are distributed according to your wishes and in the most tax-efficient manner possible.
Your financial plan can also help you identify opportunities to support charitable causes both during your lifetime and after your death, such as through a donor-advised fund or charitable trust.
Could you use help establishing a comprehensive financial plan to meet your needs? Creative Planning is here for you. Our wealth managers support clients with custom financial planning services to meet their needs and help them achieve their goals. To learn more, schedule a call with a member of our team.
