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Benefits of Financial Planning

Benefits of Financial Planning

| May 02, 2022

What is a financial plan, and why should you have one?


Everyone could benefit from a financial plan. While your situation and goals are specific to you, having an objective review of your income, investments, insurance, and taxes can be helpful if you want to gain awareness of your financial options.

Retirement, savings, insurance, college savings, and debt can all be overwhelming to get in order. A comprehensive financial plan can give you insight into your current financial picture and a clear path on how to achieve your goals. A comprehensive financial plan is a dynamic and detailed process that uncovers financial opportunities, identifies potential roadblocks, and maps out a clear path to pursuing your financial goals.

According to a CFP Board survey, people with a financial plan feel more in control and more confident about their finances than people without one.


Having a sound financial plan can help you:

  • Maximize your income. Having a financial advisor review your finances can uncover opportunities to maximize your income by identifying tax savings or by using better-suited investment options for your needs.
  • Manage your cash flow. Careful analysis of your spending habits and expenses can help you better manage your cash flow needs. It is also crucial to be aware of changes in income, and cash flow effects on your taxable income.
  • Minimize your tax burden. As your assets increase, so do your options for incorporating tax strategies to attempt to retain as much of your earnings as possible. Understanding the tax implications of your investments, earnings, and withdrawals is a critical part of your overall financial plan.
  • Create an estate plan. An estate plan allows you to take control of your wishes for your finances, medical care, and distribution of assets before the need arises. It is important to have a proper will, trust, health care surrogate, and/or power of attorney in place to make sure your wishes are carried out.
  • Manage investment allocations. As life changes, so should your asset allocation and diversification. A financial advisor will examine your specific objectives to determine what particular services and investments are suitable for you. An appropriate mix of investments in your portfolio can potentially reduce overall portfolio risk and help enhance total return.
  • Identify life insurance gaps. Do you have the right insurance coverage for your family and business? Are you aware of the liabilities you have? Having the right insurance can ensure that your family is taken care of in the worst-case scenario.
  • Plan for education savings. When you’re ready to start thinking about saving for your kids’ college funds, there are several different types of education-based savings accounts you should consider. A financial planner can walk you through the types of savings accounts and can help guide you in the right direction.
  • Plan for your retirement. When planning your retirement there are many aspects to consider, from choosing the appropriate Medicare plan to creating an income strategy. Whether you are planning for retirement, already in retirement, or somewhere in between, a financial advisor can provide you with a dependable source to help you plan and implement financial strategies based on your retirement goals.
  • Keep your plan on track. Having a clear plan allows you to identify where you are on your financial path and track how you are progressing towards your goals. A financial plan documents measurable goals making it easier to gauge if you are keeping up with the steps outlined in your plan.


It can be stressful planning for these changes by yourself; partnering with a financial advisor who can offer guidance through these decisions can be a relief. I can assist you with setting achievable goals, providing a detailed analysis of your portfolio, suggesting investment recommendations, and providing ongoing oversight.

I work alongside a team of advisors who have over 35 years of experience and have been helping people to plan for their financial goals for decades. Regardless of where you are at in your journey, we can help you put together a financial strategy that fits your lifestyle while gaining clarity into how your finances are working for you.


CONTACT US for a complimentary consultation today. We look forward to helping you.


 Neither asset allocation nor diversification guarantee a profit or protect against a loss.