The Roadmap to Prosperity: Why You Need a Financial Plan

By The Lerner Group on July 28, 2020

In an ever-changing financial landscape, uncertainties persist regardless of external conditions. Questions surrounding retirement preparedness, effective savings strategies, debt management, and investment decisions are inevitable. The inherent volatility of financial markets further complicates matters, often leaving us tossing and turning as we wonder whether our assets align with our risk tolerance.

In the face of these ongoing challenges, the importance of a meticulously crafted financial plan cannot be emphasized enough. Tailored to your unique circumstances, a financial plan serves as a guiding light through the intricacies of financial decision-making. Whether you’re just starting your financial journey or nearing retirement, a comprehensive financial plan offers clarity, direction, and tranquility, empowering you to pursue your financial goals confidently.

Here are four key reasons why a financial plan is essential:

1. Define both your short-term and long-term goals.  

Would you like to pay for your daughter’s wedding? Would you like to retire at 62 and buy a home in a warmer climate? A plan will help you create savings and investment goals and determine whether your goals are realistic for your time horizon.

2. Bring your spending and investing in line with your goals

A plan will consider your cash flow, analyze your expenses and will help you see where you are spending your money. A plan will also analyze how your assets are allocated and whether that allocation should be modified to meet your goals

3. Allows you to measure your progress toward your goals.

Are you making regular contributions to savings and retirement plans? Are you paying down high-interest debt? Is your spending in line with your goals? A plan also helps to identify risks and helps to assure that your assets are passed on according to your wishes.

4. Gain a better understanding of your finances.

It puts you in control and gives you a sense of confidence in your financial future. A plan helps you and your advisor stay accountable and work toward something tangible. Ultimately, a good plan can help you build wealth and live more comfortably. (2)

By defining your goals, aligning your spending and investments, measuring your progress, and gaining a deeper understanding of your finances, you pave the way for financial success and security. Whether you’re dreaming of your daughter’s wedding, planning for retirement, or simply aiming for a more comfortable lifestyle, a personalized financial plan empowers you to turn those dreams into reality. If you’re ready to take control of your financial future, The Lerner Group is here to help. Contact your Wealth Advisor today to embark on the journey towards prosperity and peace of mind.

1https://www.forbes.com/sites/laurashin/2013/08/07/10-reasons-why-financial-plans-arent-just-for-the-1/#1c3ea1bdd7a3

2https://www.fool.com/retirement/2017/01/27/do-you-have-a-financial-plan-heres-why-you-need-on.aspx