Financial planning generally refers to planning related to your Retirement, Investments, Estate, Insurance needs, Taxes, and Cash Flow (budgets). It also can include planning for college, management of a small business or the management of Real Estate. Financial Planners differentiate themselves from Investment Advisors or Financial Advisors by providing planning services/counsel for all or most of the above topics.
Why might you need a financial planner?Let’s look at a couple of facts from the National Association of Personal Financial Advisors:
The latest NAPFA consumer survey of adults ages 22-64 (July 2019) shows that Americans are overwhelmingly stressed about their current and future finances. 74% of Americans wish they could have set up a better financial situation
Looking to the future,
34% believe finances will stress them out later on in life
26% feel they have just enough to get by without working
22% feel they won’t be able to enjoy retirement due to finance problems
More than 54% have not yet considered their options for retiring, while 50% of Millennials surveyed said their relationship with money is stressful, compared to 44% of Generation X and 37% of Baby Boomers.
37% of those surveyed believe they would feel secure about their financial situation if they started working with a professional financial planner, while 28% believe they’d feel empowered and 26% believe they’d feel excited.
(Information can be found at NAPFA’s website under Financial Planning. Retrieved June 25, 2020, from https://www.napfa.org/financial-planning)
At Core Financial Planning, we will look at your entire financial picture and help you fit the pieces together properly. You likely have several financial planning pieces in place—you pay taxes, invest at least a portion of your savings, have some insurance, and maybe you have a will and have done some planning for retirement…but chances are each of these pieces was developed independently and at different times in your life. Is it any surprise then that you’re unsure if you’re on the right track and making all the progress you could be?
To be effective, financial planning needs to be coordinated. Each piece of the financial plan needs to accomplish its own specific tasks as well as support the tasks of each other piece. At Core Financial Planning, we also handle several additional or detailed financial topics under the umbrella of Financial Planning. (Refer to the Limited Term Engagement page under Services for details.)
Do you know where your money goes each month?
Do you carry balances on your credit cards?
How would you manage if you had no income for six months?
What would you do if you had to save more to meet your goals?
Say the word “budgeting” and most people will cringe or groan. They immediately think of tedious record keeping and then start feeling deprived. But all budgeting means is deciding how you will spend your money in advance so that you are making regular progress toward your financial independence.
We’ll help you understand the difference between good and bad debt, make sure you have enough set aside for emergencies and special opportunities, and, if needed, help you gain control over your spending.
Are you confident that you and your assets are adequately and properly insured?
Do you understand how your personal net worth may be exposed to major losses?
What would you consider to be a loss you couldn’t afford to assume?
If you died, would there be a significant financial strain on your family?
You will spend many thousands of dollars on insurance premiums during your lifetime. At various times you will probably pay for health insurance, disability insurance, auto insurance, property insurance, life insurance, and more. Determining how much coverage you need, what risks you can afford to self-insure, where you should buy your insurance, and how much you should pay for it are vitally important to your financial security. We will discuss these issues in detail and help you spend your insurance dollars wisely.
Will you be able to retire with the lifestyle you want?
Learn more about Retirement Planning →
Who is deciding what happens to everything you’ve accumulated when you die—you or the state?
Will taxes or probate costs unnecessarily reduce your estate?
Have you legally appointed someone to make decisions for you if you are unable to make them for yourself?
Are you concerned about possible conflicts among your family members after you are gone?
Estate planning goes well beyond making a will. It involves decisions in many different areas, including the naming of a guardian for minor children and special provisions for mentally or physically disabled children, medical directives and other end-of-life considerations, how to minimize or eliminate estate taxes, how to best handle gifts or bequests to charities, whether a trust is right for your situation, and how to most effectively transfer ownership of a small business.
We will evaluate the estate issues that impact your life and consider choices that you can then implement with an attorney.
Are you funding your child’s education at the expense of your future?
Do you understand the various education funding options?
Do you understand the impact of your funding choices on the other options available to you?
Will the ownership of your family’s savings accounts affect the financial aid available to you?
Saving for college is a significant financial planning issue for most families. Median family income has not increased nearly enough to keep pace with rising college costs. And while there are numerous sources of funding available, identifying the right mix of alternatives and maximizing their use is a complex and confusing process. The good news is that there are ways for families of any income level to effectively save for future college costs, and we can help you determine the best way for you and your family.
Let us do the work and save you some worry in your life. Contact us today to help us help you.