A Financial Plan is Your Road Map to Financial Success

by | Financial Planning

Tax time is a great time to dust off your financial plan. While you’re settling up with Uncle Sam for 2013, start making plans to reduce your tax liability for 2014 and take a good, hard look at your overall financial strategy.

You should have a written financial plan that serves as a road map to financial security. It should provide a vision of where you want to go and what steps you need to get there.

Here are some things you should include in your financial plan:

1. Set a budget to make sure you’re living within your means while paying off debt and setting aside savings for the future. Make sure you plan ahead for college, health care bills, retirement living and surprise expenses.

2. Contribute to a retirement plan. Whether it’s a 401(k), IRA or government pension, your retirement plan offers significant tax savings and will help to ensure that you will live comfortably in your golden years.

3. Review your insurance coverages to make sure they’re adequate for your current situation. You might be spending too much – or too little – on your auto, homeowners, life, long-term and short-term disability, long-term care, personal liability and umbrella policies.

4. Assess your investments to make sure you have a balanced, well-performing portfolio. Your portfolio should be invested based on your current financial plan. If you have had a life-changing event or have not updated your investment mix in a few years, you should re-evaluate and re-balance your portfolio to get it in line with your current needs.

5. Take stock of your end-of-life documents. You should have a valid and updated will or trust to make sure your estate goes to the appropriate people or organizations with minimal loss to probate. Make sure your advance health care directive and living will leave no doubt about the care you desire in your final days.

Update your plan as you face major life changes – marriage, birth of a child, career change, college, divorce, death of a spouse, and retirement. Track your progress to make sure you will reach your financial goals.

Whether you don’t have a plan or you want to update your current plan, contact us for a free consultation at (386) 734-9441 or info@drtfa.com. Our team of financial professionals will provide you with sound advice and tailor-made solutions.

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