What is Personal Financial Planning?

Personal financial planning is simply expert guidance on personal financial decisions in order to satisfy life needs and goals. It may also include portfolio decisions and fulfillment of portfolio needs through various products or choices.

Why do I Need Personal Financial Planning?

In order to sufficiently organize your finances in such a way as to reduce taxes, maximize investment opportunities, save time, and appropriately distribute risk, you should engage in at least some form of personal financial planning.

But Can’t I Just Do It Alone?

Perhaps, but will you? Most business people and professionals are finding it increasingly difficult to plan adequately for their personal financial growth and security. Among the most common reasons for their frustrations are:

- Lack of time

- The wide variety of today?s investment opportunities

- The complexity of ever-changing tax laws

- Untangling employee compensation and benefits

In General, What is Included in a Financial Plan?

The length of the plan is based on the complexity and details required for each individual’s circumstances. The typical plan can range from anywhere between 15 to 200 pages and includes:

- Cash Flow and Budgeting Analysis

- Capital Management (debt and investment portfolios)

- Estate Planning and Liquidity Analysis

- Income Tax Projections and Planning

- Retirement Needs Analysis

- Insurance Needs Assessment

- Future Educational Funding Needs

- Employee Benefit Analysis (coordinate personal holdings)

- Business Analysis (if applicable)

What Role Do I Take in the Planning Process?

You and your spouse obviously have a crucial role in the planning process. The plan is custom built to your specific circumstances, and as such should include specific aspects of your life. You should make sure that your planner understands you attitudes, goals, risk tolerance, and security needs. The more the planner understands you, the more customized your plan can become.

Are Any of the Financial Planning Fees Tax Deductible?

Yes. Expenses for investment and tax planning are deductible as itemized expenses, subject to limitations – IRS Section 212.

How Can I Measure the Worth of Financial Planning?

After your situation has been analyzed and recommendations made, you will be able to compare clearly your present financial condition with what is projected for the future. The long-range benefits should far outweigh the costs.

Will Personal Financial Planning Make Me Rich?

Regrettably, get-rich-quick schemes generally don’t work. This makes personal financial planning all the more important. Proper planning will help you keep more of what you earn and assist in helping your money work harder for you. It will do this by:

- Increasing the productivity of assets

- Providing financial and emotional security for your family

- Better risk management

- Introduction to new investment opportunities

- Increased tax savings

- Selecting investment alternatives more carefully

- Minimizes the effect of disability, forced retirement, and death