Why Personal Financial Planning?
Because we lead very busy lives, we
need a guide that will enable us to have our goals defined and know
exactly what is necessary to get from here to there. A
financial plan helps you take the steps necessary to turn your
dreams and desires into a reality. Some goals may be:
a first home or a vacation home.
your own business.
expectancy is longer - additional years after retirement can
more costly than originally anticipated.
pension plan and social security may not be enough to
your standard of living after retirement.
What is Personal Financial
Personal Financial Planning is an
organized, well planned system of using money and financial
resources to achieve both short and long-term goals.
Do I need Personal Financial
Yes, everyone needs a Financial Plan
to plan for tomorrow. Today's complex financial marketplace
and changing tax laws make it almost impossible for you keep up with
all the changes and to understand how these changes may affect you.
At every income level, there are steps you can take to make more
efficient use of your assets and to make sure that your financial
future is secure.
I don't have a lot of money,
do I need a full-scale Personal Financial Plan?
You may not need a full scale
financial plan CPA Financial Planners provide different levels of
financial planning from counseling to comprehensive planning.
Talk with one or more CPA Financial Planners who practice financial
planning and you should be able to find one that will meet your
How can I plan for tomorrow when I
can hardly make it today?
Set goals and create a budget.
Determine what you actually spend a month on everything. Keep
a log of all expenses for at least two months and then review the
list, make changes as necessary. It is easy to
track the major expenses such as rent, mortgage, car payment, but
the variables, the expense for food, clothing, entertainment, car
and home maintenance and repairs, are the ones that get away.
When trying to forecast your expenses keep in mind inflation
factors. Where can you cut back in order to save a few dollars -
even if only for emergency purposes. Budgeting for the future
is Key. Seek out a CPA-PFS, discuss your budget with your CPA-PFS
Financial Planner who will be able to answer any questions you may
What Should My Personal Financial
A financial plan should include a
review of your net worth, goals, objectives, property and other
assets, liabilities, cash flow, investments, retirement planning,
estate planning, tax planning and insurance needs as well as a plan
for implementing your goals.
How Do I Know How Much I Am Worth?
To determine net worth, first,
estimate the value of your assets. If you have owned your home
for a number of years you may be sitting on a nice nest egg.
Several different real estate appraisals will help you determine its
worth. Then, organize your
bank and brokerage statements and record their value. Do not
forget to include assets in IRA's, company savings, savings bonds,
or 401(k) plans. List your liabilities, such as mortgage, rent, car
loans, credit card debt and subtract
your liabilities from your assets. The result will give you a
good estimate of your net worth
How Does Goal-Setting Fit Into
Personal Financial Planning?
long-term and short-term goals on paper then rank the importance of
each. Goals could include children's education, cash for
emergencies, a vacation, purchase of a house or car, family
member care, a career change, starting your own business, or
financial independence. Financial planning can help you reach
How Often Should I Update My
Personal Financial Plan?
A good rule of thumb is to review
your plan whenever there is a lifestyle change such as a death in
the family, birth, marriage, or divorce or any change in financial
position. Changing lifestyle circumstances or goals should
also be included in the plan review
What About My Insurance?
Evaluating insurance needs is part of
personal financial planning. The insurance industry and
changed a great deal over the years, and there is a wide array of
new products, some of them in fact, may be better than your current
coverage. Your CPA-PFS can work with your insurance agent to
ensure your adequate coverage.
Who Should Prepare My Personal
The AICPA (American Institute of
Certified Public Accountants) has created a Personal Financial
Specialist program, which means, a CPA who earns the PFS designation
represents a great deal of experience, knowledge and technical
skills. A well qualified CPA-PFS financial advisor should work
with you. Remember, an objective, fee-based financial
planners' loyalty is to their clients and not to products they sell.
What type of advice should I
expect from a CPA?
Expect objective financial advice
that is tailored to meet your financial goals and objectives.
The CPA-PFS may want to confer with your attorney, insurance agent,
stockbroker and any other investment advisors to achieve the best
possible plan for you.
We welcome the opportunity to help
you reach your goals.
For more information please feel free
to browse around our web site. We are always happy to answer
any questions, or to schedule a consultation contact:
Email Us or call us at 847-215-8630.