Why You Need A Comprehensive Plan
By Anthony Cloutier
People ask me all the time if they need a "plan". Their reasoning usually seems sound and often goes something like, "I don't have that much money.", "I'm all set." Or my favorite "I can't afford it.".
To put it plainly, if you want to retire, and not worry about if it's going to work, then you NEED a plan. What most people don't realize what a comprehensive plan is.
A comprehensive plan has five parts; financial, insurance, taxes, health, and estate. These five parts all work together, and overlap, to create a seamless plan for the business of your life. Think of it like a suit of armor. Any missing piece will leave you vulnerable to an injury which can be devastating.
The first part, financial, seems easy to understand. How much money comes in? How much goes out? Simple. Except that it's not. Your financial plan you should be able to answer the following questions:
1. Do you have a guaranteed income that will pay all of your bills?
2. Do you have discretionary income to pay for vacations, gifts, ect.?
3. Do you have an emergency fund?
4. Do you have a short-term fund for large purchases?
5. Do you have a long-term fund to replenish the other vehicles?
6. Can you control your income to minimize taxes?
7. If your spouse dies how will you replace his or her social security check?
8. If you became ill, how would you pay for a nursing home?
9. Could you run out of money?
Amazingly, that is just the start. As you can see these questions also lead into the other facets. The key here is to find an advisor you trust. Then, that advisor will assemble a team of professionals who fit your needs and wallet.
Think of your financial advisor as a general contractor and architect. He knows which plumber, electrician, and painter you need. He will also build your plan and make sure it gets inspected regularly. For more information on setting up a comprehensive plan, or to set an appointment, feel free to call our office.