Contributed by: Kali Hassinger, CFP®, CDFA®
New beginnings provide the opportunity to reflect. What choices or experiences got you to where you are today, and where do you want to go from here? Whether you’re motivated by the New Year or adjusting your course due to circumstances outside of your control, goals provide the opportunity to set your intentions and determine an action plan.
Budgeting, saving, retirement, paying off debt, and investing are all common, and often reoccurring, resolutions and goals. Why reoccurring? Because, as is human nature, it is too easy to set a goal but lose focus along the way. That is why it’s so important to set sustainable goals and find a way to remain accountable.
Working with an outside party, like a financial planner, can help you define these attainable goals and, most importantly, keep you accountable. When we make commitments to ourselves and share them with others, we are more likely to follow through.
When goals are written down and incorporated in a holistic financial plan, it becomes easier to track progress and remain committed throughout the year. The financial planning process, when executed correctly, integrates and coordinates your resources (assets and income) with your goals and objectives. As you go through this process, you will feel more organized, focused, and motivated. Your financial plan should incorporate the following (when applicable):
Goal identification and clarification (you’re here now!)
Developing your Net Worth Statement
Preparing cash flow estimates
Comprehensive investment management and ongoing monitoring of investments
Financial independence and retirement income analysis
Analysis of income tax returns and strategies designed to help decrease tax liability
Review of risk management areas such as life insurance, disability, long term care, and property & casualty insurance
College funding goals for children or grandchildren
Estate and charitable giving strategies
As you reach one goal, new ones can emerge, and working with a financial planner can help you navigate life’s many financial stages. When you’re setting and working toward your objectives, don’t hesitate to reach out and share them with your trusted financial planner! If you aren’t working with anyone yet, it’s never too late to start!
Kali Hassinger, CFP®, CDFA®, is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® She has more than a decade of financial planning and insurance industry experience.