When you’re developing a financial plan, it’s important to remember that one size definitely doesn’t fit all. Different family and income situations require different strategies to reach your financial goals. Here are some factors to consider when developing a financial plan.
Age
If you are in your twenties or early thirties, you have more time to save for your dream, whether that means your perfect house, early retirement, or world travel. It is important to start planning your finances early, so your savings can grow as much as possible. People in their thirties, forties, and fifties will need to save more aggressively for what they want, but with careful budgeting and investment, it can still be done.
Income
Savers who earn less and have less money to spare will need to adjust their saving plans. It’s important to set aside as much as possible, but you still need food, clothes, and a place to live. You may want to consider higher-yield investments to increase your return or change your goals. If you have a more generous income, be careful not to spend it all on lattes and luxury cars. Establish a budget for yourself and stick to it.
Family
Families clearly have to budget differently than single people. Feeding, clothing, and caring for kids takes money, which can mean less saving. If you have kids, keep in mind that you may not be able to afford many unnecessary expenses. It is also important to start college funds for your children. Consider establishing CDs or investment accounts to fund your children’s future.
Though you can develop your own budget and savings plan, you should consult a financial planner before making any major decisions. He or she can help you decide how to allocate your funds to reach your goals. Plan & Act is an independent financial advising service. Let us help you make the most of your money. Contact us today at, (720) 897-7966.
Life insurance may not be a happy topic, but it is an important one. Too many
of us put off buying life insurance that could ease the lives
of our family members and business partners after our death.
As the insurance professional in this video explains, the three major questions to
ask yourself about life insurance are:
- Do I need life insurance?
- How much do I need?
- What kind should I buy?
For help answering these questions, talk to an insurance professional or financial
planner. Plan & Act can help you get a handle on your
financial future and plan for your family’s prosperity. To start growing
your money to pay for retirement or to speak to one of our financial advisors,
call us at (720) 897-7966,
or for a free financial assessment, Like Us on Facebook.
Part of the Cambridge System of financial planning, the financial life cycle is divided into a series of stages based on your financial situation and progress in saving for retirement. These life stages usually correspond to certain age ranges, but don’t worry if your financial stage is out of sync with out your age. There is always time to save for retirement. Read on for information on determining your place in the financial life cycle.
Formation
During childhood, most people develop their fundamental beliefs about money. When your parents took you shopping, you learned that money can buy things like food and toys. Your parents may also have helped you save money. As a teenager, your first job taught you the importance of budgeting money you earn. These lessons become vital to later stages of financial life.
Accumulation
As a young adult, you are in the beginning of the accumulation stages. At first, despite any debt you may have, earning money makes you feel rich. Instead of spending the money, motivate yourself to start saving for retirement. During the accumulation stage, which lasts until about age 55, you should save as much as possible.
Conservation
When the income generated by your portfolio exceeds half your annual income, you have achieved financial independence. This is the time to make your portfolio more conservative to give yourself peace of mind. Your portfolio continues to generate income for you to live on in your retirement.
Distribution
In this final period of life, you have the opportunity to pass your wealth on to others, whether it be family, charities, or friends. As you reach your final years of life, you can direct how the money you have earned and invested will be distributed after your death.
No matter where you are in life, it is never too late to save for retirement. Financial planners are essential to this process. Plan and Act is a fee-only financial advising firm that earns money only through stewardship of your investments. To get started with your financial plan, call us at (720) 897-7966 or Like Us on Facebook for a FREE FINANCIAL ASSESMENT.
* Plan & Act is a registered Fiduciary Financial Advisor. This ensures the financial advice you receive from us is objective, unbiased, and protects your financial interests.