Financial planning gives you a road map to reach your most important goals. People with a financial plan are more than twice as likely to be living comfortably compared to people with the same income who don’t have a plan, according to a survey from the CFP Board.
So how can you get the most out of this important process? If you’re new to financial planning services or want a refresher, we’ve covered some tips for getting more out of this valuable relationship.
You should meet with a financial advisor as soon as you can. Don’t assume you earn too little or you’re too young to need a plan. Even saving a little money now can make a big difference for your goals and an advisor can also point out some simple mistakes you might be making with your finances, like not having a big enough emergency fund.
Advisors are interested in meeting with you even if you are just beginning your career. They know if they put in the work now, the two of you can build a lifelong relationship.
Set Specific Goals
One big reason people don’t reach their financial goals is because they really don’t set any. They have some vague ideas of where they want to go in the future but without a clear plan, they never make any progress towards it. Financial goals are better when they are specific, such as, “I want $1 million for retirement when I turn 60”. A financial advisor can be a big help in setting goals because they can tell you what’s realistic and what amount you’d need to save every year to reach your goals.
Discuss Goals With Your Spouse
If you’re married, your financial plan needs to be a team effort. Otherwise, you can end up working against each other. For example, one person wants to save as much as possible to retire early, while the other is happy working longer if it means spending more now. When couples are not on the same page, it can lead to major arguments and ineffective strategies. It’s no wonder that money is a top reason why couples fight.
Your financial advisor should be able to broker this discussion so you and your spouse can figure out where you want to go in the future and also whether you need to compromise on some goals.
Set Intermediate and Long-Term Goals
Financial planning can seem like it’s only focused on long-term goals that are decades away, such as retirement. While the more distant future is definitely an important part of financial planning services, it’s not the only part. Intermediate goals should also be part of your plan, like saving up $50,000 in 5 years for a down payment on a house. In addition, you can track your progress for long-term goals. This way you have an idea whether you are on track or need to adjust.
Review Your Finances Regularly
A financial plan will only be effective if you review it and put it in practice. Every month, you and your spouse should talk about your finances and budget. This way you can catch problems early, before they get too costly, like spending too much on your credit cards. You should also consult with your financial advisor every year or two to go over your entire plan. An annual review measures your progress and updates your plan for major life changes.
Financial planning can significantly help you reach your goals, but only if you use the service effectively. By working hard with your spouse and following these tips, you’ll be in a good position to reach your goals. Contact Nicholas Wealth Management to begin your financial planning today.
Securities offered through TCM Securities, Inc. Members FINRA – SIPC. Advisory Services offered through Triumph Wealth Advisors and BluePath Capital Management.
The access and use of any product, service or links on this website is subject to the terms of this Disclaimer. David Nicholas & Nicholas Wealth Management shall not be liable for any damages arising out of your reliance to any information provided here. The information and materials provided here, whether supplied by a third party websites, marketing materials, newsletters or any form of publication are provided for general information and circulation only. None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any product or financial instrument. It does not take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute investment advice, and does not warrant that such information and publications are accurate, up to date or applicable to the circumstances of any particular person. Any expression of opinion is subject to change without notice and is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of the information provided. You should not make any investment or financial decisions, without undertaking independent due diligence and consultation with your financial advisor.
This blog is designed to provide general information on the subjects covered. It is not intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Nicholas Wealth Management and its affiliated companies, and their representatives and employees do not give legal or tax advice. You are encouraged to consult with your tax advisor or attorney.
Annuities are generally considered long-term investments. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the US. All guarantees are solely backed by the financial strength and claims paying ability of the issuing insurance company. With the purchase of any additional-cost riders, the contract’s values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. This illustration does not take into surrender charges which may apply to early withdrawals.
Purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit.An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan.Insurance products, including annuities, are offered through David Nicholas, a licensed insurance agent in the state of Georgia.
Ready to Take The Next Step?
For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.