forging your financial future

© 2005, Financial Planning Association

The Secret to Gaining Control The Secret to Gaining Control of Your Finances?of Your Finances?Financial Planning!Financial Planning!


What is Financial Planning?What is Financial Planning?• A A processprocess, not a product, not a product• A way to help you achieve your life’s A way to help you achieve your life’s

goals, no matter how wealthy you aregoals, no matter how wealthy you are


Who Needs Financial Who Needs Financial Planning?Planning?• Anyone who wants to take control of their Anyone who wants to take control of their

financial lifefinancial life• No longer a luxury, it’s a necessityNo longer a luxury, it’s a necessity


Do You Need Financial Do You Need Financial Planning?Planning?• Do you make good money, but have little Do you make good money, but have little

to show for it?to show for it?• Confused about investment options?Confused about investment options?• Do you and your spouse differ over how to Do you and your spouse differ over how to

handle money?handle money?• Are you worried about not having enough Are you worried about not having enough

money to retire?money to retire?


How do I know if I need a How do I know if I need a planner?planner?• You have little or no experience with You have little or no experience with

financesfinances• You don’t have the inclinationYou don’t have the inclination• You want an outside perspectiveYou want an outside perspective• You have a complex financial situationYou have a complex financial situation• You don’t have the timeYou don’t have the time


Finding a Financial PlannerFinding a Financial Planner• Look for competence through the CFP® Look for competence through the CFP®

certificationcertification• Interview several plannersInterview several planners• Ask for disclosure statementsAsk for disclosure statements


Financial Planning ProcessFinancial Planning Process• Step 1: Committing to the TaskStep 1: Committing to the Task

- Considerable time and effort required- Considerable time and effort required• Organize recordsOrganize records• Conquer psychological and mental hurdlesConquer psychological and mental hurdles• Commit to following throughCommit to following through


Financial Planning ProcessFinancial Planning Process• Step 2: Developing Goals and Setting Step 2: Developing Goals and Setting

PrioritiesPriorities- Goals are unique to you- Goals are unique to you- Make a list of goals- Make a list of goals- Revise and prioritize list- Revise and prioritize list


Financial Planning ProcessFinancial Planning Process• Step 3: Assessing Your ResourcesStep 3: Assessing Your Resources

- What your assets are today- What your assets are today- What future income you will have- What future income you will have- Future earnings on investments- Future earnings on investments- Expected future benefits- Expected future benefits


Financial Planning ProcessFinancial Planning Process• Step 4: Determining What is Needed to Step 4: Determining What is Needed to

Reach Your GoalsReach Your Goals- Consider cost of goals, current income, - Consider cost of goals, current income,

inflation, investment return, tax bracket, life inflation, investment return, tax bracket, life expectancyexpectancy

- May need to alter future savings or change - May need to alter future savings or change goalsgoals


Financial Planning ProcessFinancial Planning Process• Step 5: Developing a Strategy for Each Step 5: Developing a Strategy for Each

GoalGoal- Devise tactics to achieve your goals- Devise tactics to achieve your goals


Financial Planning ProcessFinancial Planning Process• Step 6: Refining Your GoalsStep 6: Refining Your Goals

- Changing circumstances require changing - Changing circumstances require changing goalsgoals

- Ask critical questions:- Ask critical questions: Are your original goals still valid?Are your original goals still valid? Can I scale back my goals?Can I scale back my goals? Can I eliminate some goals?Can I eliminate some goals?


Financial Planning ProcessFinancial Planning Process• Step 7: Incorporating Your Strategies into Step 7: Incorporating Your Strategies into

an Overall Planan Overall Plan- Financial elements linked- Financial elements linked- Each element should follow a larger plan- Each element should follow a larger plan


Financial Planning ProcessFinancial Planning Process• Step 8: Listing and Scheduling Action Step 8: Listing and Scheduling Action

StepsSteps

Example:Example:

Action StepAction Step DeadlineDeadlinePrepare WillPrepare Will 1/1/051/1/05Evaluate InsuranceEvaluate Insurance 1/15/051/15/05Prepare Investment PlanPrepare Investment Plan 2/15/052/15/05


Financial Planning ProcessFinancial Planning Process• Step 9: Putting the Plan Into EffectStep 9: Putting the Plan Into Effect

- A plan is worthless unless it’s implemented- A plan is worthless unless it’s implemented- A professional can coordinate the various - A professional can coordinate the various

elements of your planelements of your plan


Financial Planning ProcessFinancial Planning Process• Step 10: Monitoring and Evaluating Step 10: Monitoring and Evaluating

ResultsResults- Monitor results periodically to make sure the - Monitor results periodically to make sure the

plan is achieving its objectivesplan is achieving its objectives- Re-examine goals in light of any new - Re-examine goals in light of any new

developmentsdevelopments


Forging Your Financial Forging Your Financial FutureFuture• Question & AnswerQuestion & Answer


Getting HelpGetting Help

• Summit Financial Services Group, Summit Financial Services Group, Inc.Inc.

• 845-427-7017845-427-7017

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