The Main Goals A Financial Plan Should Accomplish
This article is going to briefly touch on the main things a financial plan should accomplish. You don't need a professional to help you draw up your own financial plan, but you might need professional advice and help to put some of your plans into action. Such as advice on your insurance needs to make sure you, your family and your home are adequately covered, tax advice to make sure you are not paying too little or too much, investment advice to ensure that you can reach the amount you would like to retire with while still putting money aside for your children's education and advice about what to put or not to put in your will.Those are the things you should speak to a professional about, but you should have your financial plan worked out before you speak to one so that you can let them know exactly what you wish to accomplish with your plan. Your goal is financial success; your method for reaching that goal is your financial plan. After you have drawn up your plan is the best time to speak to a professional financial planner.
They will be able to let you know whether or not you will be able to accomplish those things in your current situation after looking at your total financial picture. Your plan must take into consideration all of the goals you have set for yourself in order to achieve financial success. It should also take into consideration, all of the obstacles and things that can go wrong along the way. No one's life is perfect, things do go wrong, job loss, illness and accidents do happen and should be planned for.The first thing a financial plan should include is protection for you and your family in the event of disaster. That includes adequate insurance for your family and your property, and an emergency fund.
An emergency fund should be equal to at the very least six month's worth of take home pay. Actually, most financial experts say that now a days, nine months to a year would be best. If you do not have your emergency fund now, you should have access to an already established line of credit or credit that is readily available to you that you do not touch for any other reason except for an emergency. If you lose your job or become temporarily unable to work due to an illness or accident, you will not be able to obtain credit without income. So this is some thing that must be able to be in place now and used only in the event of an emergency, otherwise you will have to save up for your emergency fund a over time.
You should also have life, health, long term disability and property insurance. I am not an insurance expert so I am not going to go into the different types of life insurance available you should speak to a certified financial planner about that. I do know that many experts are now saying that term life is preferable to whole life. It is much cheaper and it accomplishes the same purpose as whole life.I have been told that many of your payments in the beginning of a whole life insurance policy are basically going to the person who sold you the policy as a commission before the money you put in starts building up. Many people have health insurance available through their jobs.
If you and your spouse both work use whichever plan gives you the best coverage, some jobs also provide life insurance up to a certain amount with extra available if you pay a little more. Be sure to check with your employer.If you own a home you have to have home owners insurance. You need to make sure that if your home was destroyed by fire or some other disaster that your insurance will cover you enough to replace that home and your possessions in that home. If you rent you should have renters insurance to help cover you in case of an emergency. You should have a household inventory with serial numbers where applicable and pictures of your possessions wherever possible along with receipts if you still have them in a fireproof box or case along with your other important papers.
You should do this whether you rent or own a home.The next thing a financial plan should accomplish is financial security and a comfortable standard of living for you and your loved ones. If you are married and have children, you need to plan for them as well as your self. If your parents are still alive, you should find out how well they have planned for themselves so you can make provisions for that if you need to instead of it being a surprise to you should one of them become ill or pass away. If you have siblings you might be able to share the responsibility, otherwise if might all fall on you.Find that out while you are working out your financial plan so you are not hit with a surprise a few years down the road. Nursing homes are very expensive.
That could wipe out their savings very quickly and then go through yours too if you have to help them. A few financial questions and asking them whether or not they have long term care insurance in place; could save a lot of unnecessary problems in the future.Your plan needs to make sure you are paying all of your household bills and expenses, providing some fun and entertainment money, provide care for all of those who depend on you to give them the security they need and deserve and also to ensure that you don't short change your spouse and yourself out of your own retirement needs by providing for everyone else.If funding your children's entire college education is out of the question, you need to let them know that at an early enough age for them to start their own planning. Let them know approximately how much you will be able to help them and that they will have to get good grades to be eligible for scholarships and grants. Tell them if a private college is out of the question. Let them know that they will most likely have to go to community colleges or state schools.
Talk to them about your financial situation. They might have very unrealistic expectations that you know nothing about because they know nothing about the family's financial situation.Let them know that your job is to provide a roof over the family's head, make sure there is enough to eat, heat and electricity so everyone can be safe and warm and their job is to get good grades to be eligible for as much aid for school as possible. As long as they know you love them and that you are doing the best that you can for the entire family, they will understand. Explain to them that as long as they do their job, together you will do everything you can to help them fulfill their goals and dreams for the future within your means.You have to make sure that you don't get so bogged down in planning for the future for everyone else, you forget to plan for the lifestyle you want to have during your retirement. Again if paying for college is unrealistic for you, explain to your children that it is not possible for you to do so because if you do you might end up being a financial burden to them when you retire.
Let them know you will do what you can.While the main purpose of financial planning is to have a better future, you also need to make sure you live well today and are comfortable. You won't stick with any plan that has you feeling deprived and miserable for very long.The next thing a financial plan should include is preparing for a secure retirement. With people living longer than they used to you have to plan for at least 20 to 25 years in retirement, if not more. You need to have plans for maintaining your standard of living, paying for medical care (with the proper insurance in place) and remaining financially independent of your children (by having investments for income) so you will not be a burden to them.Your plan also needs to keep taxes in mind. Have your financial planner look over your taxes now to see if you are paying too little or too many taxes.
They can also advise you on which type of investments will be best for you tax wise. Some investments have more tax advantages than others.For instance, with a Roth IRA you only pay taxes on the money that your money makes in the IRA when you withdraw it and not the money that you contributed to it. Even if you withdrew every penny that you put into it, as long as you don't withdraw the income that your money made you won't pay taxes on it until you do.The last thing a financial plan should include is your final provisions, better known as your will. No one likes to think about dying, but let's be honest we all have to do it sometime. Having your wishes drawn up as well as having the appropriate insurance and financial documents all together can alleviate the stress and anxiety for your family.
Grief over the loss of a loved one is tough enough without adding the burden of financial distress to it. Your plan needs to include a will and all related financial and insurance documents with it and an estate plan or trust that is designed to match your financial situation.To recap the main things a financial plan should include are an emergency fund, insurance to protect you from disaster, financial security and a comfortable standard of living for you and your family now and in the future, a comfortable and secure retirement that provides for you and does not burden your children, making sure you are paying the right amount of taxes now and that your investments are right for you tax wise also and finally putting your final wishes in writing to make sure they are carried out.While those should be the main components of a financial plan, there are other things that need to be considered. The stage of life you are at now. If you are in your twenties now you can afford to take more risk with your investments because you have more years to make up for any investment losses. If you are in your forties you might want to be a little more conservative.Your lifestyle is another consideration.
If you are a spender and not a saver you have to be realistic about whether or not you are willing to curb some of that in order to have a better financial future. If you have a problem staying away from the credit cards you need to get a handle on that first. If you are the type of person who spends more than they make in order to keep up the perception that you are successful, your plan will not work. Your plan needs to fit your lifestyle and not the other way around. If you make a plan that forces you to give up too much of yourself in order to accomplish it, you never will accomplish it.
Above all else when it comes to financial planning, you need to be honest about who you are financially right now and whether or not you are willing to make changes to have the financial future you want.You also need to be honest with your family. If your children are old enough include them in the plan making let them feel like they are a part of it and that your overall goal is the financial health and well being of the entire family. This can help to avoid any disappointments that can come from not knowing what the situation is. Letting your family believe that things are much better financially than they actually are will only cause problems in the future..
Teresa Kaufman© 2005-All rights reservedPersonal Budgets To Fit Your Lifestyle, Needs And WantsThis article may be used in an ezine or on a website as long as the author's name copyright information and an active hyper link to http://www.yourdollarsandsense-budgets.com with anchor text that says personal Budgets To Fit Your Lifestyle, Needs And Wants terri@yourdollarsandsense-budgets.comA Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
BETHESDA, MD (ContentDesk) March 16, 2006 -- Personalizing the drama of the Irish troubles, The Provisional American Faction, a newly released novel by David Koitz, adds a captivating international dimension to the sectarian conflict that has plagued Northern Ireland.
The 1960s was a period of great civil unrest, and the IRA and Protestant militants were in constant battle. The British entered the picture in 1969 only to be caught in the middle.
No one could see a resolution.
Rory McCaan, a young man raised in Londonderry, and transplanted to the U.S.
after becoming an orphan, leads an obscure band that only a few in his homeland know exists.
He acquires vast resources and, with his companions, he attempts to redress crimes that both sides commit.
As the story unfolds, one sees that Rory is not simply a vigilante.
He has a larger purpose, one that he seeks to fulfill through his fortuitous association with Nealen McGowen, a...
Ira > A Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
Budgeting For Prosperity
Budgeting For ProsperitySeven Steps to Follow To Achieve Financial FreedomWithout a sound financial plan, a business is doomed to failure - managing your personal finances is no different. A sound personal financial plan is crucial to both your financial and emotional well being.We have prepared a simple and easy to use budgeting process for you. This budgeting process will show you how to thoroughly develop a financial plan and lead you on the road to financial freedom.Make a complete list of your monthly income.The budgeting process always starts with a monthly income; one's income will show how much one has to spend each month.When developing your monthly income, make certain to include take home pay from your job, any bonuses that you receive, dividends and interest income from investments, tax refunds from the government, gifts from other family members, and any other type of income you may require during the particular month. If you would like a comprehensive income budgeting tool,...
Budgeting For Prosperity
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A Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
BETHESDA, MD (ContentDesk) March 16, 2006 -- Personalizing the drama of the Irish troubles, The Provisional American Faction, a newly released novel by David Koitz, adds a captivating international dimension to the sectarian conflict that has plagued Northern Ireland.
The 1960s was a period of great civil unrest, and the IRA and Protestant militants were in constant battle. The British entered the picture in 1969 only to be caught in the middle.
No one could see a resolution.
Rory McCaan, a young man raised in Londonderry, and transplanted to the U.S.
after becoming an orphan, leads an obscure band that only a few in his homeland know exists.
He acquires vast resources and, with his companions, he attempts to redress crimes that both sides commit.
As the story unfolds, one sees that Rory is not simply a vigilante.
He has a larger purpose, one that he seeks to fulfill through his fortuitous association with Nealen McGowen, a...
Ira > A Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
HSA for America Publishes Issue 6 of Maximize Your HSA
(ContentDesk) October 31, 2005 -- HSA for America has published Issue 6 of Maximize Your HSA. We feel it is important to help our clients get the maximum value from their health savings account, says Wiley Long, President of HSA for America.
Because HSA-qualified health insurance plans have high deductibles, charges for doctor visits, prescription drugs, and other medical expenses are typically paid for from the health savings account.
By knowing how to keep these expenses to a minimum, and what expenses can be paid for from a health savings account, an HSA owner can save hundreds or thousands of dollars. Maximize Your HSA is published monthly, and distributed via email.
Previous issues have covered ways to keep health insurance premiums low, how to pay for dental expenses from an HSA, and when over-the-counter medicines or nutritional supplements can be...
Ira > HSA for America Publishes Issue 6 of Maximize Your HSA
HSA for America Publishes Issue 6 of Maximize Your HSA
(ContentDesk) October 31, 2005 -- HSA for America has published Issue 6 of Maximize Your HSA. We feel it is important to help our clients get the maximum value from their health savings account, says Wiley Long, President of HSA for America.
Because HSA-qualified health insurance plans have high deductibles, charges for doctor visits, prescription drugs, and other medical expenses are typically paid for from the health savings account.
By knowing how to keep these expenses to a minimum, and what expenses can be paid for from a health savings account, an HSA owner can save hundreds or thousands of dollars. Maximize Your HSA is published monthly, and distributed via email.
Previous issues have covered ways to keep health insurance premiums low, how to pay for dental expenses from an HSA, and when over-the-counter medicines or nutritional supplements can be...
Ira > HSA for America Publishes Issue 6 of Maximize Your HSA
Gershwin Heir's East Coast Premier of "Gershwin Sings Gershwin"
BOSTON, MA (ContentDesk) June 21, 2006 -- Alexis Gershwin has been singing the timeless classics of her uncles since she can remember, and while her shows have always incorporated her familys musical legacy, her newest creation, Gershwin Sings Gershwin, is a tribute of the most familial kind.
Gershwin Sings Gershwin starring Alexis Gershwin is a personal tribute to her uncles George and Ira Gershwin and celebrates their lives and their music.
The show features the Gershwin Singers and Orchestra and will premier on the East Coast at Stoneham Theatre July 27-30.
Stoneham Theatre is located at 395 Main Street in Stoneham, Massachusetts.???Ms. Gershwin has teamed with acclaimed musical director, Steven Applegate, producer/musical director for Shirley Jones, Lorna Luft, Maureen McGovern and many others.
The show includes all new arrangements of more than twenty Gershwin favorites.
Songs like A Foggy Day, Isnt it a Pity, They Cant Take...
Ira > Gershwin Heir's East Coast Premier of "Gershwin Sings Gershwin"
Faroy Candles – Find Out How This Company Got Started
Faroy candles were first made in 1950. Two college friends named Preston Frazier and Addison McElfroy decided to make their own Christmas presents that year because they had no money to buy them. They chose to make candles, but had no intention of starting a business. Friends and family liked the creations and asked for more. A buyer for a fashion store in Houston saw the candles and suggested they take their Faroy candles to a trade show in New York.
At that time, the candles didn’t have...
candles
Ira > Faroy Candles – Find Out How This Company Got Started
handbags The Main Goals A Financial Plan Should Accomplish
handbags The Main Goals A Financial Plan Should Accomplish
Dr. Leo Van Everbroeck & Care2Learn Launch NAB/NCERS Course for Nursing Home Administrators
Bradenton, FL (ContentDesk) July 23, 2004 -- Dr Van Everbroeck and www.Care2Learn.com have launched the NAB/NCERS approved 9 hour course called "Creating an Organizational Paradigm Appropriate to a Geriatric Care Facility" which focuses on the dynamics that cause humans to rebel against traditional models of organization. Although this course targets nursing home administrators and nurse managers, any healthcare professional...
The Main Goals A Financial Plan Should Accomplish nursing courses Dr. Leo Van Everbroeck & Care2Learn Launch NAB/NCERS Course for Nursing Home Administrators Ira
Ira > Dr. Leo Van Everbroeck & Care2Learn Launch NAB/NCERS Course for Nursing Home Administrators