7 Essential Tips on Financial Plans

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Do you know how to go about finding and hiring the right financial planner for your individual or family needs? Financial Advisor, Kathleen Owings offers some tips.

  1. A financial plan is a person’s roadmap for their financial goals. Everyone should have a financial plan. Most people think or believe that these plans need to be complicated, but in reality, financial plans should be simple and answer complex questions for people. Questions such as how much do I need to save to retire, or how much should I be saving for my child’s college education need to be answered.
  2. A financial plan should be reviewed annually. It is always a good idea to review your plan annually as we all know how much life can change in a year.
  3. Examine your financial goals. Pay attention to your desired income in retirement. This amount may change as your career progress, and you make more money over time. Other numbers that should be re-visited are for life insurance or income replacement needs for your family.
  4. Determine how often you want to review your financial plan. Most people we work with only want to review their plan once, which I think is just fine. Someone may review it more often if they have had significant life changes—such as welcoming a baby into the family or the loss of a loved one.
  5. Don’t “set it and forget it.” This mentality can be a problem. Life tends to move very quickly and changes can happen overnight. If you do not revisit the plan on an annual basis, before you know it, several years have passed and your life has changed dramatically—and with it, your portfolio value.
  6. Consequences for not updating your financial plan enough. Most financial plans cover areas such as retirement and insurance needs. Some of the consequences could be that you have not saved enough for retirement or you do not have enough life insurance in the event that you passed away prematurely.
  7. Seek financial expertise. More people may wish to seek out help and guidance when it comes to financial planning. There are many talented professionals out there that can help individuals and families meet their financial goals and objectives with proper planning. Many people believe that retirement or college is not achievable, but through thoughtful planning and annual monitoring, those dreams can be a reality.

Kathleen E. Owings was named one of the 4 Under 40 in 2018, a prestigious award given by the National Association of Insurance and Financial Advisors to only four young advisors in the country. Kathleen manages assets for individuals, families, and businesses to the highest standards of fiduciary duty.