Keys to Great Financial Planning

Ray’s Take: It would be nice if you had a magic formula or an easy trick that made it so you never had to worry about money again, but life doesn’t work that way. You need a plan to help you reach your goals, and the plan should have multiple steps.

Starting young is key. The earlier you start, the more money you will accrue. Compound interest and return on investments have a much longer timeframe to grow the younger you start planning. Plus, you have time for false starts and poorly considered plans. The biggest mistake you can make in financial planning is not to plan at all.

Communicating with your spouse is another key. Discussing the future you want and how each of you envisions it will open the door to merging your vision and making the right decisions to create it. Discussing your retirement strategy may not be your idea of a dream date, but it’s also not something couples can afford to put off.

Set priorities. At its most basic level, financial planning is about effective prioritization. Prioritizing in financial planning is about more than just allocating financial resources; it’s also about allocating time, attention and effort toward making the changes necessary to implement those goals.

Review regularly. Your priorities may change over the years, or your road to reaching your existing priorities may change. The key to staying on track is to make the time to ensure you’re doing everything right to make it happen.

The market will go up and down, and there’s nothing you can do about that. There will always be events that pop up and rattle you. Focus on what you can control. Saving for retirement is a long-term goal that requires years of planning and an understanding of deferred gratification. With a solid plan, you can feel better about your future.

Dana’s Take: Plan with a purpose and do your best at every stage of your life. Take into account your retirement horizon, your needs and your family’s needs, and your goals and dreams for yourself and your family. We all dream of a stress-free retirement with oodles of time to do the things we love and the funds to make it happen.

If you’re trying to get to retirement, or you’re already there and you don’t want to fail, you have to have a plan that makes sense for you. Not your friends or co-workers. Not the pro at your golf club. Not the friend who always knows the latest thing to invest your money in. Just you.

Be Boring
Boomerang – When Adult Children Come Home