5 Benefits of Having a Financial Plan

Financial Plan

5 Benefits of Having a Financial Plan

* This article was originally published on Sept. 19, 2018. It has been updated for 2020.

The holidays have passed, we’re already a couple weeks into the New Year, and we’re smack dab in the middle of another Fort Collins winter. A little “cabin fever” could even be setting in! But if you’re the outdoorsy type, you might be spending the season skiing, snowboarding, snowshoeing — or planning your next winter hike. One of the most important parts of getting ready for a hike, especially this time of year, is knowing where you’re going so you can dress and pack accordingly, and that got me thinking about financial planning. 

While the benefits of a hike on a sunny winter day are rather clear, it’s sometimes tough for those who haven’t worked through the financial planning process — or who have worked with a “financial planner” who doesn’t do actual financial planning — to fully understand the upsides of having a strong financial plan.

Without a financial plan — or the right plan for you, for that matter — your future, like a seemingly unending hiking trail in front of you, can seem uncertain. How can you properly prepare for what’s to come? What should you expect along the way? What do you do if you come to a fork in the path or take a wrong turn?

While we might not be able to help you find the trail for the best hike in town, we can help you with the path toward your financial future — starting with helping you understand the benefits of having a financial plan.

5 benefits of having a financial plan

1. A clear view of your financial past, present, future

This first benefit is threefold. First, when you work through the financial planning process, you can see past mistakes from an objective point of view. With this new mindset, you can then learn from those mistakes. Second, a solid financial plan lets you know where you’re at financially today and how far you’ve come since you began your relationship with your planner. Third, having a plan that you consistently reassess with your advisor means you can keep the path toward your financial future in sight.

Like a great hiking buddy, it’s important to find a financial planner you like, trust, and can grow with.

What are you looking for in a financial planner? Be sure to ask your advisor these six questions.

2. Answers to your biggest “what-ifs”

You wouldn’t set off on a morning hike without packing the essentials — and extras in case of inclement weather, a wildlife encounter, or an unexpected injury. Similarly, when your financial plan is in place, you can begin preparing for whatever might be around the next corner. In addition, your financial planner can test your plan against the unexpected and is by your side to advise you should an issue arise.

3. Dreams come true

When you and your financial advisor create a plan with the right risk level for your unique situation, you can be on the path to achieving your financial goals. From a vacation home or investment property purchase to saving for your children’s education expenses or retirement, a plan could help you reach your financial summit.

4. Planning for many things at once doesn’t have to be overwhelming

If you’re saving for retirement while helping your two kids save for college and paying down the mortgage on your third investment property, you might feel like you’re being pulled in many financial directions. Just like your map telling you which way to turn, an advisor can help you prioritize, creating a holistic financial plan you can follow.

5. You don’t have to go it alone

With your plan in hand, an ongoing relationship with your Certified Financial Planner™ professional who stays on top of what’s going on in the industry can help you make the most of it. And, if your financial planner acts as a fiduciary, he or she is committed to working in your best interest. When you find someone you can trust your financial planning to, you can get back to your life and what you do best while your financial planner does what he or she does best.

Perhaps the best benefits of all are putting your money to work for you and growing your relationship with your financial planner — not to mention the peace of mind having a planned path in front of you offers.

Not a client yet? See if our ensemble approach is right for you.

Head to our Comprehensive Services page to learn more about what we do for our clients.

Jason Speciner
jason@fpfoco.com

Jason Speciner is a CERTIFIED FINANCIAL PLANNER™ professional, an Enrolled Agent, and the founder of Financial Planning Fort Collins. He is also a member of the National Association of Personal Financial Advisors (NAPFA) and XY Planning Network (XYPN). Since 2004, he has served clients of all ages and backgrounds with unique experience working with members of generations X and Y. To learn more, check out Jason's blogs and see the media he's been featured in.



Critical Money Tips
Need some tips to help you tackle your next critical money moment? Stay in the loop with our weekly(ish) email!

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
Critical Money Tips
Need some tips to help you tackle your next critical money moment? Stay in the loop with our weekly(ish) email!

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
Critical Money Tips
Need some tips to help you tackle your next critical money moment? Stay in the loop with our weekly(ish) email!

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
Critical Money Tips
Do you have a cash surplus? Learn more what to do with extra money in the free-preview of our Teachable course: Sudden Money and Windfalls.

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
Critical Money Tips
Are you here because of a big change in your finances? Subscribe for our PDF on 6 questions to learn the benefits of working with a full-time fiduciary.

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
Inheriting Money Can Be Overwhelming.
We have the expertise to be your guide as you navigate receiving a windfall.
Equity Compensation Can Be Confusing.
Let us make it less complicated for you. Whether it’s a one-time award or ongoing compensation, we know how to help.
Critical Money Tips
Need some tips to help you tackle your next critical money moment? Stay in the loop with our weekly(ish) email!

We promise to never sell, rent, lease, loan, or otherwise use your email address for any reason inconsistent with our privacy policy. You can easily unsubscribe at any time.
FEE SCHEDULE
Unless there is truly unique or extraordinary complexity associated with a client’s situation and financial circumstances, our fee will be based on the market value of the assets under management (AUM) for investment management services, subject to a minimum fee of $500 per month. The fee is blended and calculated using the following schedule. We do not require a minimum investment of any amount.
Assets Under Management Annual Fee
$0 - $1,000,000 0.60%
$1,000,000 - $3,000,000 0.50%
$3,000,000 - $5,000,000 0.25%
$5,000,000 and above 0.10%
Accumulators: Building Your Nest Egg
Our process helps those saving for their future with the following:
  • Cash-Flow Planning:
  • Estate Planning:
  • Insurance Planning:
  • Investment Planning:
  • Tax Prep & Planning:
  • Optimize your spending and savings.
  • Protect yourself and your loved ones.
  • Safeguard your earnings and assets.
  • Grow your wealth.
  • Get savvy with your strategy.
Ready to take the next step?
Retirees: Living Off of Your Nest Egg
Our process helps those nearing or in retirement with the following:
  • Cash-Flow Planning:
  • Estate Planning:
  • Insurance Planning:
  • Investment Planning:
  • Tax Prep & Planning:
  • Maintain your comfortable lifestyle.
  • Align your legacy with your intentions.
  • Protect your nest egg.
  • Don’t outlive your assets.
  • Never overpay the IRS.
Ready to take the next step?