A good financial plan addresses a number of financial aspects: goals, savings, investments, taxes, insurance, and estate plans. Your financial plan will be a snapshot in time that predicts your retirement savings and income based on your current behaviors. At the end of the initial planning period you will either be happy with the future as it is outlined or it should lead you to make changes necessary to meet your goals. Generally, a good financial plan should impact your behavior.
Personal circumstances impact your financial decision making: career choice, family situation, risk tolerance, health, and general financial knowledge are the most common factors. Having a plan that utilizes data and lays out how your individual tendencies affect the likelihood of your success will impact your decision making in a way that increases the chance of achieving your goals.
Some of these changes are easy to make like purchasing an additional amount of life insurance or reducing a goal that is 10+ years in the future. It is not immediately impactful, but over the long term can have major, beneficial effects.
Other habit changes are more challenging and immediate. Reprioritizing items in your current budget that you want vs. need such as: eating out, elaborate trips, or a desired remodel. It may mean actually making a budget and focusing on needs over wants! It also could mean trading out that desired big expense for an increase to your retirement account contributions.
None of these changes should feel painful. Think of it as deferring immediate gratification to make strategic adjustments that ensure you can live the long-term lifestyle you desire.
The goal of a financial plan is to think forward and put on paper what you want your future to look like. Your plan provides the path of appropriate steps to get to your destination. Studies have found that by writing down your goals and having a plan increase the likelihood of success by 42%. Going through the planning process and getting your goals on paper you will have significantly increased your likelihood of getting to your goals.
No matter what your short and long-term goals are, there is no reason to go it alone. When you are sick, you seek out a doctor. When your car breaks down, you find a mechanic. When you need financial advice, seek an expert. TCG has several CERTIFIED FINANCIAL PLANNERS ® and experienced financial professionals that can help you create a plan to positively impact your financial future.
Your financial plan will not just summarize your current financial situation, but layout a path that leads to your version of financial success. Together we will create an action plan to impact your decision-making. We encourage you to schedule a virtual meeting with our advisors and allow us to help you in developing a plan tailored to you.