Turbocharged Financial Planningby C.C. Collins
Financial planning is an ongoing process individuals and businesses should
implement by organizing all aspects of their finances. This will assist in
identifying financial goals, providing a comprehensive written Financial Plan,
and implementing the plan in accordance with the objectives that are most
important to you.
Comprehensive financial planning should involve these areas and these
specific questions.
ESTATE PLANNING
- How can you accumulate a sizable estate to pass on as a family legacy?
- How will your hard-earned assets be distributed after your death?
- How can you minimize federal estate taxes and state inheritance taxes?
- How can you best provide for your surviving spouse and children?
- Whom do you want to carry out your wishes?
RETIREMENT PLANNING
- How can you accumulate enough in retirement savings and pension benefits to
enjoy a comfortable retirement free of financial worry and not be a burden to
your family?
- How much (or little) can you expect to receive from Social Security?
- How can you coordinate your IRA, 401k, pension, Social Security, and other
retirement benefits for maximum effectiveness?
- At what age can you really afford to retire, especially if you have children
to send to college?
TAX PLANNING
- Are you taking full advantage of the tax laws so that you are not paying
more than necessary?
- Are there changes you could make in your business structure that would
reduce your income taxes?
- Do you have access to changes in tax law that affect you?
RISK MANAGEMENT
- How are you protected against the unpleasant and potentially catastrophic
losses associated with natural disasters, illness or accident, disability,
property loss, personal liability, and premature death?
- Is your business protected against these potential losses?
- How would your business be affected if your key people were no longer able
to function?
INVESTMENT STRATEGY
- Do you really have a structured investment strategy or do you just invest
haphazardly in the latest investment fad?
- Do you know how to increase your investment returns and lower your
investment risk through the use of the principles of the Modern Portfolio Theory
of Asset Allocation?
- Is your asset mix appropriate for your short-term needs as well as your
long-term goals?
- Do you adjust your investment strategy as your investment objectives change?
- Are your investments effectively overcoming the ravages of inflation and
taxation?
- Do your investments accurately reflect your risk/reward profile?
Answers to these questions should be incorporated into a customized personal
financial plan tailor made just for you.
A Financial Plan is specific to your unique needs and will include the
following:
- Current and projected financial statements
- "What if" scenarios with different assumptionsv *Cash flow objectives
- Retirement goals and tax-efficient ways to achieve them
- Funding children's education
- Protecting against the financial impact of premature death or disability
- Implementation schedule with a time frame to follow.
Expect this process to be an eye-opening experience. You should be able to
see all the disparate areas of your financial life come together into a
comprehensive, meaningful, integrated whole.
All parts will work together like a well-oiled machine. You will see exactly
where you are now, where you want to go, and most importantly, how to get there.
Any obstacles you face will be clearly identified.
Your personal financial plan is a living document that should be reviewed on
a regular schedule and altered to meet your changing circumstances.
Developing your financial plan is only the first step in a life-long process
of wealth accumulation and financial security. Free financial planning resources
are available at http://www.flanancialplanninginfo4u.com when you are ready to
begin. About the Author
C.C. Collins is a Wealth Building Advisor and Author of “Scientific Wealth
Strategies” at http://wealthscientist.com Find more information at http://www.irainfo4u.com
cc@networthpublishing.com
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