See Your Financial Future: Financial Planning

The goal of financial planning is to create the future you desire! Abraham Lincoln's famous quote says, “The best way to predict your future is to create it.”

Do you dream of traveling, leaving money to children or a charity or maybe just being able to retire comfortably? Whatever ambitions you might have may come with a financial cost. Calculating these costs and allocating resources for achieving these dreams is the essence of financial planning.

Financial planning is a process that can help you target your goals by evaluating your whole financial picture, and then outlining strategies that are tailored to your individual needs and available resources.

Why is financial planning important?

A comprehensive financial plan serves as a framework for organizing the pieces of your financial picture. With a financial plan in place, you'll be better able to focus on your goals and understand what it will take to reach them.

One of the most significant advantages of a comprehensive financial plan is its ability to harmonize various financial imperatives. For instance, a well-structured plan can illuminate how optimizing for tax efficiency might affect your capacity to build a legacy for your heirs. Armed with this integrated view, you can make informed decisions about goal prioritization, implement tailored strategies, and select appropriate financial vehicles. The end result? A cohesive plan that not only aligns with your current needs but also sets you on a path toward a more secure and tax-efficient future.

The financial planning process

Creating and implementing a comprehensive financial plan generally involves working with financial professionals to:

Develop a clear picture of your current financial situation by reviewing your income, assets, and liabilities, and evaluating your insurance coverage, your investment portfolio, your tax exposure, and your estate plan
Establish and prioritize financial goals and time frames for achieving these goals
Implement strategies that address your current financial weaknesses and build on your financial strengths
Choose specific products and services that are tailored to meet your financial objectives
Stress testing the plan for success
Monitor your plan, making adjustments as your goals, time frames, or circumstances change

LEARN MORE ABOUT THE MCBEATH FINANCIAL GROUP PROCESS

Some members of the team

The financial planning process can involve a number of professionals.

Financial planners typically play a central role in the process, focusing on your overall financial plan, and often coordinating the activities of other professionals who have expertise in specific areas.

Accountants or tax attorneys provide advice on federal and state tax issues.

Estate planning attorneys help you plan your estate and give advice on transferring and managing your assets before and after your death.

Insurance professionals evaluate insurance needs and recommend appropriate products and strategies.

Investment advisors provide advice about investment options and asset allocation and can help you plan a strategy to manage your investment portfolio.

The Collective Team ideally should work together for implementation. Working alongside an estate planning attorney, McBeath Financial Group can help integrate all of these aspects.

The most important member of the team, however, is you. Your needs and objectives drive the team, and once you've carefully considered any recommendations, all decisions lie in your hands.

Why can't I do it myself?

You can, if you have enough time and knowledge, but developing a comprehensive financial plan may require expertise in several areas. A financial professional can give you objective information and help you weigh your alternatives, saving you time and ensuring that all angles of your financial picture are covered.

Staying on track

The financial planning process doesn't end once your initial plan has been created. Your plan should generally be reviewed at least once a year to make sure that it's up-to-date. It's also possible that you'll need to modify your plan due to changes in your personal circumstances or the economy. Here are some of the events that might trigger a review of your financial plan:

Your goals or time horizons change
You experience a life-changing event such as marriage, the birth of a child, health problems, or a job loss
You have a specific or immediate financial planning need (e.g., drafting a will, managing a distribution from a retirement account, paying long-term care expenses)
Your income or expenses substantially increase or decrease
Your portfolio hasn't performed as expected
You're affected by changes to the economy or tax laws

FAQs about financial planning

What if I'm too busy?

Don't wait until you're in the midst of a financial crisis before beginning the planning process. The sooner you start, the more options you may have.

Is the financial planning process complicated?

Each financial plan is tailored to the needs of the individual, so how complicated the process will depend on your individual circumstances. But no matter what type of help you need, a financial professional will work hard to make the process as easy as possible, and will gladly answer all of your questions.

What if my spouse and I disagree?

A financial professional is often acting as a professional counselor in listening to your concerns, identifying any underlying issues, and help you find common ground.

Can I still control my own finances?

Financial planning professionals make recommendations, not decisions. You retain control over your finances. Recommendations will be based on your needs, values, goals, and timeframes. You decide which recommendations to follow, then work with a financial professional to implement them.

Krista McBeath is an Investment Advisor, Chartered Financial Consultant, a Licensed Insurance Advisor, a Fiduciary, and an experienced tax advisor who specializes in financial planning, investments, and insurance. McBeath Financial Group utilizes advanced tools for in-depth calculations that analyze tax and retirement scenarios to help their clients avoid a future tax time-bomb. Whether this means enjoying more of your hard-earned money in retirement or passing along assets to loved ones with less tax burden, planning makes the difference.

Krista's Amazon best-selling book, The Generational Wealth System outlines a holistic approach to preserving lifestyle, wealth and legacy.

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