Financial Planning

Financial planning is the process of developing a strategy to achieve your financial goals. It encompasses a wide range of financial products and services, but it all starts with the same objective: to help you reach your goals.

Too many adults have only a general idea of where they are heading financially, a sketchy picture at best. Without a plan, you're just guessing where your money is going. However, with the help of a qualified financial planner, you can understand your spending choices, boost your savings, and cut needless expenses. At Northbound Wealth Management, we work to help you reach your financial goals by recommending strategies and solutions that fit your life.

What is retirement planning?

Why You Need a Financial Plan

People think about starting financial planning for lots of reasons. Some people have life events that trigger the need for a financial plan, such as getting married or buying a house. However, the majority of people discover they need financial advice when they feel their current level of savings doesn't match what they want to do with their life.

A financial plan can help you protect what you have, save more, and ensure that your savings do the most good for you. It's the best way to be sure that your money goes where you want it to go—whether that's your retirement savings, paying off debt, or buying a new car or house.

What Are IRA to Roth Conversions?

What Does Financial Planning Entail?

A smart financial plan should address four major areas of your life: saving and spending, borrowing and investing, charitable giving and protecting your family. It's not realistic to expect that you'll meet all of your goals in any one financial product. Smart investors choose a combination of such products as 401(k) plans, IRAs, and mutual funds to achieve the returns and diversification they need for their income goals. Here are elements of financial planning.

Retirement Planning

Accumulating the retirement income that you need should be a key part of any financial strategy. For a retirement strategy to be comprehensive, it should consider how and when you will use your savings and investment portfolio to provide for your future income needs. Often this involves deciding when to start receiving income from sources such as pensions or annuities, what is the appropriate level of income from these sources, and whether additional current income should be provided by drawdown strategies from the retirement portfolio.

Estate Planning

A well-thought-out estate plan will consider all aspects of a person's life, including how the wealth is earned, how it will be passed on, how it will be used, and protection against unnecessary income and estate taxes upon your death. It should be created in the context of the overall financial strategy for you and your family.

Risk Management Strategy

The strength of a financial strategy is directly related to the risks that may be present within that strategy. It is a framework that outlines how you manage risk across each of your insurance policies, investment decisions, and estate planning. This plan will help you organize insurance protection by reviewing your existing policies and coverage. It will also assist you and your family in evaluating the need for additional coverage by pinpointing potential risk gaps in your existing insurance policies.

Investment Strategy

An investment strategy is important because it determines the right combination of assets to help you meet your financial goals. It should be a key component in any financial plan due to its critical role in building and preserving wealth. When it comes to investing, a customized plan based on personal objectives, a risk tolerance profile, and future trends could make all the difference.

Tax Management

To minimize the immediate and future tax payments, sound tax planning should be an essential part of any financial strategy. A sound tax management plan will take into account immediate tax considerations and the likely impact of future tax laws upon specific investments.

Charitable Giving

Giving, as a part of financial planning, works in a personal and professional way. There are sound financial reasons for giving, such as tax deductions and public image, but we believe there are personal rewards for generosity as well. A sense of investment in your community, as well as a sense of fulfillment, are just a couple of ways that charitable giving pays off personally. 

Frequently Asked Questions

  • What Does a Financial Planner Do?
    Financial planners assess your current financial status and develop a strategy for managing your money — now and in the future. Their services include assembling all of your financial information, determining how much you have to invest, finding ways to minimize taxes, advising on insurance coverage, developing investment strategies, and explaining how each decision affects your overall financial picture.
  • Why Is Financial Planning Important?
    A comprehensive financial plan is an essential component of your journey. Without a financial plan, you may find that you cannot make important decisions regarding your money and investments. What's more, a financial plan ensures that you allocate funds appropriately toward various purposes to ensure that you stay on track with the different stages of your life.
  • Should Everyone Have a Financial Plan?

    Financial planning is about creating the resources and vehicles that allow your goals to become reality. Whether you are 20 or 55, buying a home, getting married, paying for college, or retired from a successful career, everyone needs a financial plan.

  • Am I Too Old To Start Financial Planning?

    A financial plan is a personalized approach to building wealth and securing your finances for the future, no matter your age or stage of life. Timing and age may be factors in creating a financial plan, but you can still get started wherever you are today. Your path to a secure financial future can start with a basic strategy tailored to your needs.

Your Financial Future Starts Here

Financial planning is a process, not a product. It's a way of thinking about your life and how to achieve your goals. With the right tools, you can create a vision for your financial future that's clear and achievable.

At Northbound Wealth Management, we combine expert advice with best-in-class technology to help you make smart money choices, communicate your goals and track your progress every step of the way. Let our team help you take control of your future today.

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