How to Start a Financial Plan Today
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G. R. Davis II, Scott & Stringfellow Financial Advisor
Published: April 17, 2008
You can buy “IT” on eBay, MetLife will insure you for “IF,“ and a financial advisor can help you get “THERE!“
So you must be wondering where is THERE? THERE is wherever you want to go in life. THERE is obtaining your goals, professional and personal. THERE is what financial planning may help you find.
It is possible to stumble upon a big fortune and realize your financial goals without properly planning. Long-lost and often forgotten Aunt Sally may name you in her will. Bless her heart, she never spent a dime and now it all belongs to you. Those lottery tickets you purchased on a whim last Friday night could have you loading up before this weekend. I guess these are possible, but financial freedom is generally the result of exceptional planning. Do you want a 1 in 15 million chance of getting THERE?
Life has many possible stages: starting your first job, getting ready to retire, starting a family, settling a divorce, the list goes on and on. No matter your current stage, it is always a good time to develop, understand, and examine your financial roadmap. The planning we do today may help steer how we live tomorrow, agree?
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Jackie, fresh out of school faces decisions regarding her new employer’s retirement plan. She knows Social Security is not going to cover her retirement. Will she receive any? I believe Jackie should save for her own retirement and with a little guidance I am sure she will agree that a financial advisor may help her toward her goals. As a financial advisor, one of my greatest joys is helping someone, young or old, enroll in a retirement plan for the first time. Encouraged and motivated, Jackie is ready to get THERE.
Dale, a country farmer, has worked hard for many years. He’s been to a lot of auctions, wore out more than one tractor, and lived at the mercy of Mother Nature eight days a week for most of his life. (Having grown up on a farm, I always say, “it’s an eight day a week job.“) All of Dale’s profits have been absorbed by younger cattle, better fences, and newer equipment. Now it is time to cut back a little or at least think about it. Trimming back his operation may result in less income. This income needs to be replaced in order for Dale to get THERE.
These two examples on opposite ends of the spectrum show the need to get started now. Do you agree the best time to get started is the present? If so, continue. If not, good luck with the lottery.
The planning process can take many shapes and forms. No matter your approach, these two steps may help you get started.
• Gather your information
• Find a Financial Advisor you can trust
Gathering your information is the easy part. Keep record of your bills for an entire month. This will include your utilities, groceries, gasoline, prescriptions, etc. These are your outflows. Next, make note of any income you receive. A pay stub, settlement payments, investment interest, etc. Lastly, gather your most current bank and investment statements for checking, 401(k), CDs, credit cards, mortgage, etc.
It is your responsibility to review all the moving parts of your financial picture. Understanding these moving parts and the potential solutions are the keys to your financial independence. Finding the right Financial Advisor to fit your needs also increases your odds. The right advisor is a partner who connects with you, helps you understand, guides you through decisions, and keeps your best interests at the front of all decisions.
The best way to find an advisor is to ask someone you respect for a referral. If they trust their advisor, they should have the confidence to refer you. I tell my clients the best compliment I can receive is a referral. Essentially, this means I am doing my job well.
Jackie needs to lay the ground work for a solid retirement. Dale wants to see the world beyond his own fences. Only you know where THERE is for you. Enlist the services of a financial advisor today to help you get on track toward arriving THERE.
G. R. Davis II is a financial advisor with Scott & Stringfellow in Waynesboro. You may contact him at 540.943.4592 with any questions or comments.
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