Financial Planning

What you need to know to get started

Personal financial planning might seem like a broad concept that encompasses just about every aspect of your financial life. If you don’t have a financial plan in place, this might seem like a daunting effort or perhaps a rigid way to go through your expenses. However, this is not the case. In fact, it’s quite the opposite.

It’s true that a financial plan should incorporate everything from budgeting to bills to groceries to deciding what to do with that unexpected holiday bonus. But it’ll also put you on the best path toward reaching your personal goals.

Think of it this way: You earn money and spend money, and there are items you want, so why not plan accordingly so this process is seamless and benefits you for years to come? If you’re not following a financial plan yet, there’s no better time to get it in place than right now.

It is all about you. It’s personal.

Regardless of your situation, a financial plan will help you improve your financial standing and achieve those things you want in life. There is a common perception that only those with a great deal of wealth need to have a financial plan in place, but this simply isn’t the case. Financial planning is for everyone.

The best part about having a financial plan is that it’s tailored to you and your lifestyle. It will represent not only your financial situation at present but will also help you create a roadmap to the financial destination you hope to arrive at in the future.

How do I create a financial plan?

Don’t make it difficult. The best way to go about a financial plan is to start off simply. Set up a budget with your expenses, debts and goals. Make sure you’re growing your emergency fund as well, as you don’t want your efforts hindered down the road. These are the basics that every individual (or household) should have in place.

Doing this will put your financial behaviors into a good routine. You’ll find yourself being more conscious of the financial choices you are making, and you will likely be saving more from each paycheck as well.

Financial Planning Calculators

Take advantage of free online tools such as our financial calculators. We have calculators to help answer your credit card questions, understand credit lines and home costs, and how to meet savings goals.

Have you ever asked yourself, “What will it take to become a millionaire?” Many people might think that desiring to be a millionaire is fanciful, but is it? Using a calculator helps you learn how a little more savings per month or the annual rate of return on investments impacts how quickly you can achieve this plan.

Look to the future

The best personal financial plan considers your immediate situation, but it’s a long-term commitment as well. Therefore, it should be focused in a way that addresses your long-term goals, or rather, puts you on the path toward them. Whether you want to take a big vacation next year, or you’re stashing money away for retirement, your financial plan should incorporate both timelines.

Some people push off their future goals, thinking they need to solely address their current financial situation first. There’s no question that paying down your debts should be a top priority when it comes to your finances but having a financial plan in place helps you strike the appropriate balance of being able to do both.

Also, just like your life, your financial plan will change over the course of time. Your goals might change, or your income, or perhaps you decide you want to make a big purchase that you weren’t planning on. Simply adjust your financial plan.

Adjusting a budget is common, and your financial plan should be treated the same way. While there are more moving pieces to consider, the idea is the same. Your financial plan should not be responsive to your lifestyle, but should evolve right alongside it.

Turn to the pros

Financial planning experts are worth your time. They’ve seen it all, and even though your situation is unique, they can help steer you in an appropriate direction that makes sense for you and your lifestyle.

Here are just a few examples of how a wealth management team can help you:

• Private Banking: There’s more to banking than just opening a checking or savings account. There are strategies and options available to you, and additional insights can help whether they pertain to day-to-day deposits or any credit needs that might arise.
   
• Tax Planning: The ins and outs of taxes can be confusing, but with a wealth management team on your side, they can be effortless. And planning for taxes means more than simply paying them or deciding which deductions to make. There are strategies you can implement all year long to make the most of your financial situation.
   
• Family Office Services: Family wealth can come in many ways, but a family office should have protection. And when it comes to protecting wealth that will pass through the generations, there is no reason not to have the experts on your side.
   
• Retirement Planning: From 401(k)s to IRAs (traditional or Roth) there are many avenues to help you plan for retirement. But which avenue makes sense to you? Retirement planning is all about making your future dreams become a reality, whatever they may be.

A financial plan is your roadmap. It helps prepare you for both the unexpected and the expected. If implemented properly, it will allow you to live the life you want, even in your twilight years.

By partnering with a wealth management team and getting the most out of your financial planning efforts, you’re only helping yourself. And down the road, you’ll be thankful you did. Reach out today and speak to an advisor about establishing a financial plan that works for you and brings your goals into view.

Talk with someone on our wealth management team about your financial planning and private banking needs. Call 800-991-7706 today.