Is Your Financial Picture Properly Framed?

October is National Financial Planning month, and the financial chaos many have experienced in 2020 highlights the need to bring your financial picture into more clear focus. Most Americans don’t have a financial plan, and even those who do have one don’t have it documented. According to a Gallup poll, only 38% of investors say they have a written financial plan. Here’s why that matters.

The key to achieving the vision for your financial future is to Frame Your Picture™. You may have an idea of what you’re looking to achieve, but without clarity it is just that: an idea. The more specific you’re able to get about what you picture for yourself and your family, the better your wealth advisor will be able to create a personalized plan that works for your unique situation and is truly representative of your vision.

It is easier to stray from your financial goals without a plan. Whether you get caught up in the bustle of life or fail to prioritize what needs to be done because you don’t have actionable steps laid out in front of you, not having a written financial plan costs you in the long run. Before you know it, you’ve lost valuable time that could have moved you significantly closer to what you envisioned for yourself and your family’s financial future.

Those with a financial plan often are better equipped to handle life’s unexpected events. Life inevitably tosses the unexpected our way, and these events are stressful enough on their own, never mind having to navigate them while trying to figure out finances. Working with your wealth advisor to craft a written financial plan (and sticking to it) can go a long way in securing your family’s financial future, protecting the overall financial structure in the face of adversity, significant life changes, and even inflation.

It is hard to pinpoint what “retire comfortably” means without a plan. Health care, by far, is one of the biggest factors to consider when calculating how much you’ll need for retirement and many Americans underestimate this figure. Other factors to take into account include your desired lifestyle, the age at which you want to retire, after-tax rate of investment returns, how much wealth you’d like to give to loved ones or a beloved charity, and more.

Now is the time to tackle the important task of financial planning if you haven’t already. And if you’re among the few with a financial plan, let’s dust it off and make sure it is in top form to work hard for you and your vision of your financial future. Schedule a time to talk about financial planning with CornerCap Wealth Advisors today.