Young professionals: It’s never too early for goals-based financial planning

 

When beginning a career in professional services or health care, navigating the world of a steady paycheck and perhaps newfound wealth can seem overwhelming. But partnering with a banker to craft a goals-based financial plan can help you take charge of your economic circumstances and give you confidence in your financial future. After all, the job of your wealth manager is not only to help create your financial plan but to ensure you stick to it even if your goals change over time.

 

Goals-based financial planning puts your needs front and center, and it starts with forming a relationship with a banking partner you trust and could envision calling upon over the long-term.

 

The wealth manager you choose should be someone who listens, understands exactly what your goals are and knows what it will take to achieve them. A wealth advisor will work closely with you to uncover your needs, assess your tolerance for risk and build a customized and achievable plan. Equally important, a wealth manager will explain your options, ensure you understand the potential results of your choices and share near- and long-term results.

 

Since your vision for your future and the goals you hope to attain can vary widely and evolve over time, a goals-based financial plan should be a living document that can adapt as your life changes, as your vision for your future and related goals will likely evolve over time.

 

Early on, a goal could be to buy a house or save for a child’s education. Later, goals may shift to building your own practice or planning for early retirement. No matter what your future plans entail, your wealth manager will develop a financial plan that helps you achieve your desired outcomes while keeping you informed.

 

Goals-based financial planning encompasses a wide range of tools that financial institutions are well versed in providing:

 

1. Insurance and risk management. Identifies, monitors and helps protect against potential losses that can involve property, income, health or even life.
2. Investment management. Works to build a portfolio of stocks, bonds and other investments that align with your goals and values and have an appropriate risk profile.
3. Retirement planning. Enables you to have financial independence without the steady income of a paycheck. It factors in potential medical issues, social security and 401(k) income, your tolerance for risk, charitable giving and, of course, your aspirations.
4. Estate planning. Creates an action plan to determine what will happen to your assets and obligations as you age and after you die. When designed correctly, distributions to family, friends or charities will be made with minimal tax implications.
5. Tax planning. Works to minimize your tax liability to support your financial goals.
6. Business succession planning. Allows you to protect your business assets and minimize tax impacts when you retire and transfer or sell your business.

Goals-based financial planning leaves nothing to chance and little room for surprises. To help you make the best-informed decisions, goals-based planning takes a team approach.

 

Your financial plan will include input from every member of your financial team: your attorney, accountant, insurance agent and tax preparer. These experts will broaden the vision and scope of the plan, providing different ideas and solutions for making and accumulating wealth.

 

Working with an objective team can also minimize the emotional response that sometimes affects clients’ thought processes and decisions. Your wealth manager and other advisors will consider all tools and related products and develop sound investment strategies and solutions to help guide you into the future, no matter what lies ahead.

 

With goals-based wealth management, you are in charge, so the most critical part of the process is to share your dreams with your wealth manager and help your team quantify your goals. Strategic planning and regular reviews of those plans will help ensure that even economic downturns or falling stock markets don’t impact your financial well-being. Matching your financial plan to your life’s goals will help ensure a bright future and peace of mind.