Benefits of Financial Planning - Part 4
What Your Financial Plan Should Include
The key to creating a successful financial plan is ensuring it
covers your current and future financial needs. To determine
your particular needs, spend time with your financial advisor
considering your options, defining your goals, and evaluating
your resources. The following are some common areas to consider when planning financial future.
Cash flow is a cornerstone in developing a comprehensive financial plan. Identifying what your spending habits are now
will help us identify what your cash flow needs in retirement
will be. Failing to have a clear picture of your bills and expenses
can dramatically reduce your ability to meet your financial
Fundamental to building a secure, manageable future is saving
for the unexpected as well as the expected. Saving is easier if you "pay yourself first" and build automatic savings into your budget.
Risk can take many forms: illness, accident, liability, and
natural disasters, to name a few. Failing to manage risk properly
can jeopardize your financial future. That's why smart financial
planning evaluates the various levels and types of insurance you carry to make sure they're aligned with your overall goals and needs. In many cases, insurance can also be used effectively as an alternative revenue stream and hedge against inflation and
riskier types of investments. Life insurance policies contain
exclusions, limitations, and reductions of benefits, and terms
for keeping them in force. Your financial advisor can provide you with costs and complete details.
Cornerstone Wealth Management
486 N.W. 2nd Avenue
Canby, OR 97013
Securities and advisory services offered through LPL
Financial, a registered investment advisor. Member
The opinions voiced in this material are for general
information only and are not intended to provide
specific advice or recommendations for any individual.
Rebalancing a portfolio may cause investors to incur
tax liabilities and/or transaction costs and does not
assure a profit or protect against a loss.