What Is In A Financial Plan

Often times, when people are planning for their retirement, they need to create a financial plan as one of the steps in the process. Many people do not know what a financial plan is, but it really is something quite simple. A financial plan defines your goals and objectives financially. All of your hopes and dreams that take finances to achieve, is exactly what a financial plan is created for.

When creating a financial plan for yourself, it will involve you saving both short term and long term. It also involves investing and having proper insurance to protect yourself and your family. A financial plan should take the maximum amount of advantages from any of your employers and should provide you with the necessary legal documents to prepare your family with in case of emergencies.

What is in a Financial Plan - Financial Planning

If you do not have a financial plan in place, it is likely that you will not achieve any of your hopes and dreams that require specific amounts of money. Many people spend a lot of their time planning for vacation with their family and never stop to think about planning for their future financially.

One of the best ways to create a financial plan, is with the help of a CFP (Certified Financial Planner). When working with a financial planner, a financial plan created with them may include some of the following parts:

  • A personal net worth statement- a review of what you own and what you owe. This will help you to know where you stand and give you a benchmark to measure any progress that you make.
  • A look at your cash flow- this is so you can see exactly how much money comes in and goes out every year. This is the foundation of your budget and helps to manage your debt.
  • A retirement plan– this will specify how much you need to save each year to achieve the lifestyle you would like to live in your retirement.
  • An analysis of your current investment portfolio- this will help your financial planner recommend appropriate adjustments based on your goals, resources, and time frame.
  • A review of your employee benefits- this should include an equity compensation plan.
  • A review of your insurance coverage- you should always be sure that you have proper coverage and are not paying for any unnecessary coverage.
  • And much more.

A financial plan should be a very important piece of your overall life plan. A licensed CFP can help you to create a financial plan and suggest the best options for you to take. When searching for a financial planner, you should take your time and pick the best one for you.

When choosing a financial planner, you should always make sure that they are licensed, have the proper credentials, and are willing to provide you with references. This is very essential when choosing a financial advisor to help you. If you would like more information or to receive a free instant quote, contact The Retirement Planning Group today!

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About Ryan Costello

Ryan was born and raised in Olathe, KS and currently resides in Leawood, KS. He played college football while earning his degree from Baker University. His drive and competitiveness stems from his background in athletics, which has played a big role in who he is today. Ryan has been a Financial Advisor since 2002. Although he didn’t realize it at the time, his destiny into the world of finance began early in his high school days when a checkbook of his didn’t quite balance out. From that point forward, he developed a meticulous attention to detail with all things financial – a trait that he proudly carries with him today.

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About Ryan Costello

Ryan was born and raised in Olathe, KS and currently resides in Leawood, KS. He played college football while earning his degree from Baker University. His drive and competitiveness stems from his background in athletics, which has played a big role in who he is today. Ryan has been a Financial Advisor since 2002. Although he didn’t realize it at the time, his destiny into the world of finance began early in his high school days when a checkbook of his didn’t quite balance out. From that point forward, he developed a meticulous attention to detail with all things financial – a trait that he proudly carries with him today.