If you aren’t sure how to achieve your short or long-term financial goals, financial planning services can help you strategize a path toward achieving your objectives. Whether you are saving for education or planning for retirement, financial planning can be very helpful. Here’s what you need to know about financial planning.
What is a Fiduciary?
Our trusted advisors are Fiduciaries. A Fiduciary Financial Advisor has the legal duty to make investment recommendations with your best interest in mind, while other advisors who may not be a Fiduciary may recommend products for which they receive a commission or other form of payment.
A financial plan is a set of documents that contain a person’s current financial information and long-term monetary goals. The plan also includes strategies that can be used to achieve those goals. Financial plans can be produced independently, but people often seek assistance in the process. That’s why companies like American Family Solutions offer full-service financial planning to their customers.
A financial plan can help you prepare for the future by allowing you to lay out all of your financial goals in a concise document. With a financial plan available, it’s easier to understand if all of your financial needs are being met. Although financial plans don’t have a set template, a licensed financial planner should be able to produce a plan that assesses risk, informs investments, and minimizes tax burden. An estate plan can also be included to arrange for the benefit and protection of your heirs.
Financial planning involves several steps. First, you calculate your net worth, then you determine your cash flow, and after that, you balance priorities. Here’s a little more information about each step.
Cash flow is defined as the amount of money coming in and coming out. By documenting transactions, you can track the flow of cash in and out. Once you understand how much money is being spent and how much is being earned, you can determine how much you have available for saving, investing, and buying necessities.
It’s best to evaluate an entire year because expenses can change seasonally. By doing this, you can avoid over or underestimating what you spend in the given time frame.
When working to determine cash flow, your financial planner will document how much you’ve paid for basic housing expenses, like rent and utilities and credit card interest. Then, they’ll add categories for food, transportation, medical insurance, clothing, and other forms of spending, like entertainment and vacation travel.
To get the most out of a financial plan, you must have clearly defined goals. Your financial planner will help you figure out what takes priority and develop a financial plan that will help you reach your objectives. This may involve matching you with a detailed savings plan or suggesting specific investments that will help you prepare for the future.
If you’ve never had a financial plan made, you’re missing out on the clarity that these tools offer. To get your financial plan created, contact American Family Solutions.
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Regardless of the type of plan or coverage you need, American Family Solutions will safely guide you through retirement so you can enjoy your golden years with peace of mind knowing you are protected.
We are not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options. American Family Solutions is an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any comments regarding safety and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company. No legal advice, options or recommendations are being made in respect to this proposal. You should consult your tax professional or attorney concerning such advice and opinions.