Financial plans don’t have a set template. A licensed financial planner will be able to create one that fits you and your expectations. Once complete, it may prompt you to make changes in the short term that will help ensure a smooth transition through life’s financial phases.
The following elements should be addressed and revised as necessary:
- Retirement strategy: No matter what your priorities are, the plan should include a strategy for accumulating the retirement income that you need.
- Comprehensive risk management plan: This includes a review of life and disability insurance, personal liability coverage, property and casualty coverage, and catastrophic coverage.
- Long-term investment plan: A customized plan based on specific investment objectives and a personal risk tolerance profile.
- Tax reduction strategy: A strategy for minimizing taxes on personal income to the extent allowed by the tax code.
- Estate plan: Arrangements for the benefit and protection of your heirs.