The 7 Most Important Elements of Financial Planning

People seek out the help of a financial advisor for different reasons. Some people seek advice because they want help making good investment decisions.  While this information is important and helpful, it’s not nearly enough to ensure a lifetime of financial security or to ensure a steady retirement income.  There’s a lot more to financial security than just good investment advice. 

At Better Wealth for Women, we believe that a holistic planning process builds a core foundation for a solid financial future.

While this is not a comprehensive list, a good financial plan should address the following areas.

A Deep Dive Discovery Process  

What makes the Better Wealth for Women program so different from other advisors?

We are committed to understanding the needs and challenges of every client, inside and out. We work hard to understand not just your financial objectives but also your unique value systems, goals, and objectives that will form the foundation for how we proceed. The discovery process is as comprehensive as it gets. We ask about your family makeup, finances, goals, fears, and financial needs.  

What Is Your Timeline?

Sound financial planning is not only about identifying your goals but when you hope to achieve them.  Our state-of-the-art planning software lays out timetables for reaching your goals based on your available resources.  It’s important to know what it’s really going to take to reach that goal and when. 

People closer to retirement might have different goals and timelines and could shift their focus accordingly, such as maximizing retirement contributions, or analyzing tax strategies for retirement.

The Better Wealth for Women Financial Planning Tool was designed to take the guesswork out of how to reach your financial goals.  

Retirement Planning Advice

The backbone of any financial plan is the retirement plan.  While we have many financial goals throughout our lifetime, the ultimate goal is to secure a healthy, and sound retirement.  

You’ve worked hard your entire life and a solid retirement plan will help you protect and grow your assets for the future.  At Better Wealth for Women, we also consider what taxes in retirement might look like and take steps now to reduce future tax liability.  We will also address strategies for maximizing your social security benefit.    

Net Worth Statement / Assets and Liabilities Statement

A balance sheet or net worth statement will show your net worth by listing all assets and liabilities. This should be periodically updated to track progress towards overall goals and to identify changes in your financial situation that need attention. 

We start by giving you a snapshot of where you are now, and during our time together we can monitor and watch your assets grow.

Cash Flow Analysis 

A cash flow statement will show income from all sources, as well as expenses that occur on a recurring basis. This too should be periodically updated to track progress towards overall goals and to identify changes in your financial situation that need attention. 

Risk Management and Insurance Analysis 

A sudden unexpected event can derail even the most detailed plan unless you have anticipated and planned for unplanned events such as losing a job, extended stays in healthcare facilities, getting sick, or even death.  Insurance products are useful in managing these risks.  

Today’s life insurance products are cornerstones for sound financial planning.  They offer strategies that not only pay a death benefit but can help save toward college, guarantee tax-free income at retirement and provide a succession plan for your small business.  

At Better Wealth for Women,  we can make recommendations that will not only mitigate the risk of an unplanned event but also enhances the money you’ve worked so hard to save.  Don’t let an unforeseen emergency keep you from reaching your financial goals. 

Asset Allocation

Asset Allocation is a strategy that looks to balance one’s portfolio according to time horizons, risk tolerance, and financial goals.  The three main asset classes are equities (stocks) fixed income, (usually bonds but annuities are also an option) and cash (money markets, cd’s and other cash accounts). 

The concept of asset allocation is rather simple.  These three asset classes have different levels of risk and return within any given time period. he losses.  Effective asset allocation makes sure that your portfolio is balanced so that you have enough in bonds or cash to absorb any downswings in the market without compromising your retirement date.