What is a Financial Plan and Why Should I Have One?

A financial plan is a roadmap for pursuing your unique goals. It includes a comprehensive assessment of your current financial state, and strategies and specific recommendations for managing debt, saving, investing, and reducing risks to your financial well-being.

Having a financial plan can help you:

·        Gain more control of and be more confident about your financial future

·        Make more informed financial decisions

·        Set and prioritize specific and meaningful financial goals

·        Be better prepared for unexpected expenses and emergencies

·        More effectively manage and reduce debt

·        Effectively utilize tax-advantaged investments

·        Get and stay on track for your goals

Key Components of a Financial Plan

Current Financial Situation:  Net worth and cash flow statements (annual budget).

Financial Goals:  Setting clearly defined short, medium, and long-term goals, like taking a vacation, buying a house, or funding your retirement.

Debt Management:  Developing a plan for managing and reducing debt, including prioritizing repayment, consolidating loans, and negotiating lower interest rates.

Risk management:  Utilizing insurance to protect your family, your property, and your assets.

Investment Planning:  Identifying a suitable mix of diversified investments that are aligned with your goals, time horizon and tolerance for risk.

Tax Planning:  Making effective and efficient use of tax-advantaged investments.

How Can a Financial Advisor Help?

A financial plan is a great place to begin your journey to financial security, but ultimately your results will depend on your ability to consistently make the smart, informed financial decisions that are essential to successfully executing your plan. A knowledgeable, experienced financial advisor can:

·        Serve as your personal financial coach, motivating you and holding you accountable to ensure you stay on track for your goals

·        Act as a steadying influence to ensure you stay the course in volatile markets

·        Work with you to adjust your plan as your circumstances and goals inevitably change

Take the First Step

At First Command, we’ve been developing comprehensive financial plans for our clients since 1958, and our Financial Advisors are committed to providing personal financial coaching to their clients at every stage of their financial journey. If you’re ready to get your financial life squared away, we’re ready to help. Contact us today to schedule a complimentary consultation. 

First Command does not provide legal or tax advice, and this article does not contain any legal or tax advice.  Should you require legal or tax advice specific to your situation, you should consult with an attorney or qualified tax advisor.  The information provided to you herein is provided for informational purposes only, is not intended to be tax or legal advice, and should not be used for the purpose of avoiding tax-related penalties under the Internal Revenue Code.