8 Things financial planning can help you address

Published on

Financial planning is unique for each person; no two financial plans look the same because everyone's life and personal goals are different. Regardless of what your goals are, financial planning can help you work towards achieving them. One of the most significant benefits of financial planning is that it gives you the confidence to stay on track towards your goals or make changes to pursue them.

Financial planning examines your current financial situation by assessing your budget, debt management, savings, retirement planning, insurance, and estate planning. The first year of financial planning may be more complex since your marital status, assets you own, income, health, financial literacy, employee benefits, number of children, and future retirement income are all factored into your plan.

A financial plan can’t guarantee protection from unexpected life events, but it can help you create a blueprint to work towards achieving these eight things:

1. Establish an emergency fund

An emergency fund is money saved in an account to use during financial stress to help improve economic security.

2. Create a budget

A budget is an estimate of income and expenses for a period, such as a month.

3. Reduce debt

Whether you owe a few thousand or hundreds of thousands of dollars, paying off debt can lead to less financial stress and more financial security.

4. Save money

Saving money can help prepare you for future goals and expenses and help protect you from financial emergencies.

5. Improve your tax situation

A financial plan can help illustrate how tax-advantaged investment strategies may reduce your tax bill.

6. Save for retirement

A financial plan can help illustrate retirement savings projections based on an assumed rate of return to help you determine if you are on track or need to revise your plan.

7. Save for your child or grandchild's education

Including education savings in your financial plan can help you estimate how much you need to save to reach your education funding goal.

8. Save for other financial goals

Whatever your goal, a financial plan can help you work towards having the finances to achieve it.

An experienced financial professional can help guide you through the financial planning process by providing advice in several areas of your financial life. While every financial professional has their distinct strengths and specialties, they can also help you:

  • Determine if you're on track with your goals
  • Provide a second opinion
  • Evaluate your investment strategies and implement new strategies
  • Assess your risk tolerance and time horizon to align with your goals
  • Rebalance your portfolio
  • Manage roadblocks that can impact your finances- job loss, divorce, etc.

Now that you know what a financial plan is and what it can help you address, take the next step and schedule a financial planning meeting with a financial professional today.

Important Disclosure

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

This article was prepared by Fresh Finance.

LPL Tracking #1-05315702

You may also like

article

A retirement countdown checklist: 5 steps to consider before retirement

Whether you're hoping to retire soon or are just beginning to explore the idea of stepping back from your job, you're probably wondering how to make it happen. Will you have enough money? How will you spend your time? What will you do for health…

article

Identity theft and your taxes

Identity theft is one of the fastest-growing crimes in the United States. According to Consumer Affairs, in a 2022 study, each year, seven to ten percent of the U.S. population are victims of identity fraud, and 21 percent of those are repeat victims…

article

Worried about your financial health? It may be time for a checkup

When was the last time you gave yourself a financial checkup? As the saying goes, there’s no time like the present. This is especially true when it comes to reviewing the current state of your finances and figuring out what you need to do to get – or…

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.

Disclosures

Securities and insurance offered through LPL or its affiliates are:

Not Insured by FDIC or Any Other Government Agency

Not Bank Guaranteed

Not Bank Deposits or Obligations

May Lose Value

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Webster Bank and Webster Investments are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Webster Investments, and may also be employees of Webster Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Webster Bank or Webster Investments.

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Your Bank (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.

The Webster Symbol is a registered trademark in the U.S.