Financial Planning: Helping You See The Big Picture

Do you picture yourself owning a new home, starting a business, or retiring comfortably? These are a few of the financial goals that may be important to you, and each comes with a price tag attached.

That’s where financial planning comes in. Financial planning is a process that can help you target your goals by evaluating your whole financial picture, then outlining strategies that are tailored to your individual needs and available resources.

WHY IS FINANCIAL PLANNING IMPORTANT?

A comprehensive Retirement Plan serves as a framework for organizing the pieces of your financial picture. With a financial plan in place, you’ll be better able to focus on your goals and understand what it will take to reach them.

One of the main benefits of having a financial plan is that it can help balance competing financial priorities. A financial plan can clearly reveal how financial goals are related–for example, how saving for a child’s college education might impact one’s ability to save for retirement. This information can then be uses to decide how to prioritize goals, implement specific strategies, and choose suitable products or services. Best of all, a financial plan keep financials on track and headed in the right direction.

THE FINANCIAL PLANNING PROCESS

Creating and implementing a comprehensive financial plan generally involves working with financial professionals to:

• liabilities, evaluating insurance coverage,  investment portfolios, tax exposure, and estate planning needs.
• Establish and prioritize financial goals and time frames for achieving these goals.
• Implement strategies that address current financial threats and build on financial strengths.
• Choose specific products and services that are tailored to help meet financial objectives.*
• Monitor the plan, making adjustments as goals, time frames, or circumstances change.

MEMBERS OF THE FINANCIAL TEAM

The financial planning process can involve a number of professionals.

Financial planners typically play a central role in the process, focusing on the overall financial plan, and often coordinating the activities of other professionals who have expertise in specific areas.

Accountants or tax attorneys provide advice on federal and state tax issues.

Estate planning attorneys help create legal estate documents, and give advice on transferring and managing assets before and after death.

Insurance professionals evaluate insurance needs and recommend appropriate products and strategies.

Investment advisors provide advice about investment options and asset allocation, and can help establish a strategy to manage investment portfolios.

STAYING ON TRACK

The financial planning process doesn’t end once your initial plan has been created. The plan should be reviewed at least once a year to make sure that it’s up-to-date. Modifications, due to changes in personal circumstances or the economy are normal and expected. Here are some of the events that may trigger a financial plan review:

• Goals or time horizons change.
• There is a life-changing event such as marriage, the birth of a child, health problems, or a job loss.
• A specific or immediate financial planning need (e.g., drafting a will, managing a distribution from a retirement account, paying long-term care expenses).
• Income or expenses substantially increase or decrease.
• Portfolio hasn’t performed as expected and changes need to be made to the plan.
• Major economic, political, or law changes have occurred that impact the plan.

COMMON QUESTIONS ABOUT FINANCIAL PLANNING

“What if I’m too busy?”

Don’t wait until you’re in the midst of a financial crisis before beginning the planning process. The sooner you start, the more options you may have.

“Is the financial planning process complicated?”

Each financial plan is tailored to the needs of the individual, so how complicated the process will depend on your individual circumstances. But no matter what type of help you need, a financial professional will work hard to make the process as easy as possible, and will gladly answer all of your questions.

“What if my spouse and I disagree?”

A financial professional is trained to listen to your concerns, identify any underlying issues, and help you find common ground.

“Can I still control my own finances?”

Financial planning professionals make recommendations, not decisions. You retain control over your finances. Recommendations will be based on your needs, values, goals, and time frames. You decide which recommendations to follow, then work with a financial professional to implement them.

Important Disclosures:

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.