Financial Planning: The Need

It can be difficult to create a financial plan that works. When we create a financial plan, we discover that there are many pieces to it, much like a puzzle.

These are the pieces of the puzzle and the financial issues that we can expect to encounter in our lifetimes.

· Cash Management - More than just balance the checkbook, cash management also includes following a budget and using credit wisely to keep the income tax burden as low as possible.

· Risk Management There is a risk of losing both your life and your property. Insurance can pay for the cost of medical treatment. Disability insurance can help protect against the loss in earning capacity. Insurance for critical illness can provide some protection against the loss of financial resources that may be due to an unplanned major illness. A family can use life insurance to protect them against the possibility of death before it happens. Insurance that covers property and casualty can help protect your worldly goods from damage and perils such as fire, flood and earthquake.

· Goals for Accumulation. We all need to save money. One common goal is to educate our children. Two other common goals for accumulation are buying a house and building an investment portfolio fee only financial planners.

· Retirement - Take action now to ensure that your later years are as pleasant and stress-free as possible.

· Estate Planning - Planning for the eventual transfer of assets to our heirs.

Financial security can be achieved by creating a coordinated financial plan. These steps are necessary to achieve financial security. There are two basic steps involved:

· Step 1 Select Your Financial Planning Team Expert help is essential in today's complex and ever-changing world. Your team will include professionals such as your attorney and CPA, CPA, IRS enrolled agents, life insurance agent or health agent, securities broker, financial planner, and your CPA.

· Step 2 Create Your Plan. With the support of your team, you can take the second step, which is to develop a systematic and integrated plan that addresses the financial security of your family.

This is known as creating a financial plan. These problems can be ignored until it is too late or you can work with your financial advisor to solve them. The first step is the most important.