Pablo Picasso couldn’t have emphasized the value of a plan more when he said: “Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” Most individuals dream of living a financially successful life, but often abandon their goals because they lack the structure needed to achieve them. A financial plan acts as that structure, as it is a documented strategy that incorporates an individual’s current financial situation, short-term and long-term goals, and how they will achieve those goals. In order to achieve one’s financial dreams, a personalized financial plan is the best strategy.
Every plan must be customized to match each person’s inherently unique situation. For example, a plan that works for a married couple with no kids, may not work for a single mother. This is why a personal financial plan is absolutely necessary. If a financial plan is not personalized for an individual’s specific goals, the chances of achieving those goals are low.
What is a Personalized Financial Plan?
There are many small details that impact personal financial planning. From investment planning to tax optimization strategies and estate planning, every aspect of an individual’s holistic financial situation must be considered. For example, it can be tricky to balance savings strategies and prioritization of goals if a couple is trying to save towards their child’s college education while also putting away money for retirement.
The couple will need to consider what type of savings account will provide the best tax benefits, as well as how to make their money cover day-to-day expenses. Thus, when creating their personalized financial plan, they will need to determine how much money needs to be allocated to each account monthly while maintaining their desired lifestyle. While it sounds simple, it can be challenging to navigate through the best practices for achieving this.
A financial planner with a holistic understanding of the couple and their goals can make all the difference. Not only will an advisor facilitate communication and help steer tricky conversations regarding wealth management, but their experience can also prove invaluable in avoiding costly mistakes.
Benefits of Having a Financial Plan
With all of the daily tasks that a person is responsible for, the last thing they want to worry about is if they’re appropriately planning for their future. Personalized financial plans help people to better understand where and how they can improve. Rather than thinking, “I wonder if I’ll be able to afford a comfortable retirement?” an individual with a financial plan knows exactly where they stand and what they need to do to be successful.
A custom financial plan is also essential when planning for retirement. The goal should be to retire comfortably, without having to rely solely on a pension or a family member. So an individual’s personalized financial plan will also need to include planning for retirement. A top fiduciary financial planner, such as those Zoe Financial has in its advisor network, helps its clients save in a tax-efficient manner, which includes choosing the right retirement account.
How to Make a Financial Plan
A critical part of making a successful financial plan is hiring the right financial planner. Zoe Financial makes it easy to find a trustworthy financial planner or financial advisor, as only the top 5% of qualified advisors are admitted to the Zoe Advisor Network. Before being accepted in Zoe’s network of advisors, they must have the proper credentials and education, experience, and be a true fiduciary, as well as undergo a meticulous qualitative and quantitative assessment.
This allows each client to feel confident that they are hiring a financial planner that has their best interest in mind. Each advisor in the Zoe Network has different strengths and unique experience that makes them especially qualified to aid in creating a client’s financial plan. For example, one planner may have more experience in employee stock options while another may specialize in family planning. For this reason, Zoe’s award-winning algorithm custom picks the best advisor for each person’s unique experience. With top advisors across the country, an individual can rest assured knowing that their advisor matches have been customized for their situation.
Once an individual has received their personalized advisor matches, the only thing left to do is schedule a free, introductory interview with their financial planner matches to get a feel for the type of advisor they would like to hire.
After finding their perfect advisor match, the individual and the financial planner will assess the current financial situation and set both short- and long-term objectives. The personalized financial plan will then be constructed incorporating those specific goals.
Zoe Financial understands that everybody’s circumstances are different, which is why the independent advisors in its network all focus on delivering a truly personalized financial plan. Even after the plan is created, it’s important to remember that changing circumstances and life events can alter the plan over the years. As such, a personalized financial plan must be reviewed annually to ensure it’s consistently in line with the person’s life.
