Do you remember when you last took your car for a routine oil change? If it’s been a while, let this serve as your friendly nudge to schedule an appointment — your engine will thank you. If you recently visited the auto shop, you likely got a multi-point inspection checklist from your mechanic. The inspection was a quick look at your car’s health, checking fluid levels, tire wear, suspension, and other maintenance needs.
Now, imagine applying that same concept to your finances.
A comprehensive financial plan is like a multi-point inspection for your financial life. Even if things seem to be running smoothly — your spending’s in check, your investments are growing — there could be blind spots. Reaching your destination safely may require financial planning while wealth management might take you further.
It’s possible that your home or life insurance coverage may not fully meet your needs, and you might consider reviewing your coverage. You might want to leave a legacy for your children or grandchildren. However, you may not have considered the possible estate tax costs.
And then there are the curveballs: job loss, market downturns, health emergencies. A solid financial plan helps you spot these risks early and prepare for them.
Your financial story
Your financial documents tell a story. Tax returns, account statements, and insurance policies can all reveal insights into your habits, preferences, and even your values. Along with financial statements, a detailed questionnaire and follow-up conversations can provide information on more than just numbers and your current financial situation.
A skilled advisor can read between the lines to understand your risk tolerance, your comfort with debt, and how you prioritize saving. The more your financial advisor knows about you, the more personalized and effective financial planning can become.
Building a financial foundation
Comprehensive financial planning begins with building a strong financial foundation. This helps ensure you’re taking control of your money and prioritizing your financial security now.
Take these five steps to get started:
- Building an emergency fund: Save emergency funds to cover 3-6 months of expenses.
- Paying off debt: Eliminate student loan and high interest debt, especially credit card debt. Focus on paying off debts for things that do not increase in value faster than the interest rate.
- Setting goals: Pay for future purchases with savings to avoid accumulating debt.
- Saving for retirement: Fund an employer-sponsored retirement plan and maximize contributions. Don’t miss out on an employer match of your contributions.
- Saving and investing: Fund a traditional or Roth IRA if you don’t have a 401(k). Or as an additional retirement account.
The financial roadmap to your goals
Think of your financial plan as your GPS. You know where you want to go but you need details on how to get there. And support for staying focused.
Maybe your goal is planning retirement, buying a home, or funding your kids’ education. Without a roadmap, it can be easy to veer off course. And don’t discount potential detours which can cost you in time, money, and missed opportunities.
An actionable financial plan helps you stay on track. It adapts as your life changes, recalculating your route when needed. It won’t guarantee you will reach every goal. However, it gives you a clear path and confidence. This helps you keep moving toward financial security and wealth.
Comprehensive financial planning covers all areas of your financial life. This includes investments, savings, estate plans, tax strategies, insurance, and more.
At Mercer Advisors, no question is too large or too small as we guide the choices that can help you achieve your financial goals.
Here are a few examples of how we can help when collaborating with you to build a financial plan:
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Ready for a check-in?
Consider financial planning as preventive maintenance for helping ensure a secure financial future. Because just like your car, your finances run better with regular care.
Here’s your challenge: If you haven’t updated your financial plan in a while, schedule time with your wealth advisor. If you don’t have a comprehensive financial plan and want to know more about how Mercer Advisors can help you with one, let’s talk. Planning now can benefit you in the future.
Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.
