Financial plans allow you to prepare for things like your child's education, your retirement, or big/unexpected life changes. Depending on your state of residence, thoughtful financial planning is essential to ensure all available tax-advantaged account types are optimally leveraged.
The truth is that every single financial plan ever written is wrong. Why?
Because financial plans assume that you will lead an average life and we know that life presents all sorts of different experiences and no plan can accurately capture what may happen in a life. Divorce, illness, winning the lottery or another type of windfall are all potential variables that may happen tomorrow, rendering the plan of today somewhat moot.
Nevertheless, there is a lot of value in having a plan because it is a living document.
It is a tool we can use to promote the notion that there is life beyond money and in order to live that life, we need to make intentional decisions. These intentional decisions must be informed and the planning process how we make these informed, intentional decisions.
It should start with your goals and objectives, and an evaluation of your current cash flow, taxes, and projected cash flow needs. From there we will build an investment portfolio to suit your needs, with an eye toward creating reliable retirement income and efficient tax planning. As appropriate we will also evaluate insurance needs.
All financial plans are inherently flawed. However, the more accurate the input, the more reliable the output. Therefore, essential information includes investments held, number of dependents, income and expenditure details, savings and financial planning needs, etc.
The necessity of establishing a plan is manifest in the question. The solution? Establish a budget and identify your monthly expenditures. There are fixed expenses like shelter, loan repayments, etc. every month about which we can do little. The variable items such as food, clothing and entertainment are often what get away from us. Together, we can identify which of these items we can curtail to begin saving.
Miles Brown Asset Management, llc.
175 N Redwood Drive Suite 140 San Rafael, CA 94903
Advisory services offered through Miles Brown Asset Management, LLC. The information on this website should not be considered legal advice. Please consult with a qualified financial advisor before investing in securities or other financial instruments.
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