One of the greatest and most innovative coaches in NFL history, Tom Landry, once said that, “setting a goal is not the main thing, it is deciding how you will go about achieving [the goal] and staying with the plan.”
As with any goal, in order to achieve a financial goal you need to have an understanding of where you stand today, where you want to be in the future and how you plan on getting there. The most effective plans start with a discussion about your values, your current situation and your aspirations. Only then can you comprehensively assess your financial situation and determine if your existing investment strategy is in line with your goals.
Your Financial Planning process should include the following steps:
- Clarify your goals
- Identify hurdles & explore your options
- Evaluate your options and potential solutions
- Decide on a solution and strategy that best meets your needs
- Implement the plan
- Review and tweak on a regular basis
A good financial plan can help to identify priorities, focus your resources on achieving your objectives and provide valuable insight as to what your retirement may look like. It can also help in minimizing your tax burden by determining where to draw funds from and where to efficiently allocate investment asset classes. Most importantly, a good plan can help ensure that there is sufficient income to meet goals and provide comfort that you can maintain your desired lifestyle.
The benefits of a financial plan are boundless. The sooner you know where you want to go, and you have a plan to get there, the more likely you are to achieve your goals.
“Goals are dreams with deadlines.” ― Diana Scharf
Cattelan Private Wealth Counsel.