forging your financial future
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Contact Summit at 845-427-7017 for a special offer.TRANSCRIPT
© 2005, Financial Planning Association
The Secret to Gaining Control The Secret to Gaining Control of Your Finances?of Your Finances?
Financial Planning!Financial Planning!
© 2005, Financial Planning Association
What is Financial Planning?What is Financial Planning?
• A A processprocess, not a product, not a product
• A way to help you achieve your life’s A way to help you achieve your life’s goals, no matter how wealthy you aregoals, no matter how wealthy you are
© 2005, Financial Planning Association
Who Needs Financial Who Needs Financial Planning?Planning?• Anyone who wants to take control of their Anyone who wants to take control of their
financial lifefinancial life
• No longer a luxury, it’s a necessityNo longer a luxury, it’s a necessity
© 2005, Financial Planning Association
Do You Need Financial Do You Need Financial Planning?Planning?
• Do you make good money, but have little Do you make good money, but have little to show for it?to show for it?
• Confused about investment options?Confused about investment options?
• Do you and your spouse differ over how to Do you and your spouse differ over how to handle money?handle money?
• Are you worried about not having enough Are you worried about not having enough money to retire?money to retire?
© 2005, Financial Planning Association
How do I know if I need a How do I know if I need a planner?planner?
• You have little or no experience with You have little or no experience with financesfinances
• You don’t have the inclinationYou don’t have the inclination
• You want an outside perspectiveYou want an outside perspective
• You have a complex financial situationYou have a complex financial situation
• You don’t have the timeYou don’t have the time
© 2005, Financial Planning Association
Finding a Financial PlannerFinding a Financial Planner
• Look for competence through the CFP® Look for competence through the CFP® certificationcertification
• Interview several plannersInterview several planners
• Ask for disclosure statementsAsk for disclosure statements
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 1: Committing to the TaskStep 1: Committing to the Task- Considerable time and effort required- Considerable time and effort required
• Organize recordsOrganize records
• Conquer psychological and mental hurdlesConquer psychological and mental hurdles
• Commit to following throughCommit to following through
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 2: Developing Goals and Setting Step 2: Developing Goals and Setting PrioritiesPriorities- Goals are unique to you- Goals are unique to you
- Make a list of goals- Make a list of goals
- Revise and prioritize list- Revise and prioritize list
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 3: Assessing Your ResourcesStep 3: Assessing Your Resources- What your assets are today- What your assets are today
- What future income you will have- What future income you will have
- Future earnings on investments- Future earnings on investments
- Expected future benefits- Expected future benefits
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 4: Determining What is Needed to Step 4: Determining What is Needed to Reach Your GoalsReach Your Goals- Consider cost of goals, current income, - Consider cost of goals, current income,
inflation, investment return, tax bracket, life inflation, investment return, tax bracket, life expectancyexpectancy
- May need to alter future savings or change - May need to alter future savings or change goalsgoals
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 5: Developing a Strategy for Each Step 5: Developing a Strategy for Each GoalGoal- Devise tactics to achieve your goals- Devise tactics to achieve your goals
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 6: Refining Your GoalsStep 6: Refining Your Goals- Changing circumstances require changing - Changing circumstances require changing
goalsgoals
- Ask critical questions:- Ask critical questions: Are your original goals still valid?Are your original goals still valid? Can I scale back my goals?Can I scale back my goals? Can I eliminate some goals?Can I eliminate some goals?
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 7: Incorporating Your Strategies into Step 7: Incorporating Your Strategies into an Overall Planan Overall Plan- Financial elements linked- Financial elements linked
- Each element should follow a larger plan- Each element should follow a larger plan
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 8: Listing and Scheduling Action Step 8: Listing and Scheduling Action StepsSteps
Example:Example:
Action StepAction Step DeadlineDeadline
Prepare WillPrepare Will 1/1/051/1/05
Evaluate InsuranceEvaluate Insurance 1/15/051/15/05
Prepare Investment PlanPrepare Investment Plan 2/15/052/15/05
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 9: Putting the Plan Into EffectStep 9: Putting the Plan Into Effect- A plan is worthless unless it’s implemented- A plan is worthless unless it’s implemented
- A professional can coordinate the various - A professional can coordinate the various elements of your planelements of your plan
© 2005, Financial Planning Association
Financial Planning ProcessFinancial Planning Process
• Step 10: Monitoring and Evaluating Step 10: Monitoring and Evaluating ResultsResults- Monitor results periodically to make sure the - Monitor results periodically to make sure the
plan is achieving its objectivesplan is achieving its objectives
- Re-examine goals in light of any new - Re-examine goals in light of any new developmentsdevelopments
© 2005, Financial Planning Association
Forging Your Financial Forging Your Financial FutureFuture• Question & AnswerQuestion & Answer
© 2005, Financial Planning Association
Getting HelpGetting Help
• Summit Financial Services Group, Summit Financial Services Group, Inc.Inc.
• 845-427-7017845-427-7017