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Posted on March 24, 2020

The Importance Of A Financial Plan

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Published by Daniel Morrison, Wealth Advisor

Life can be chaotic when you don’t have a plan of action. Would you agree? When you consider life events outside of your normal routine, like that thing you might have heard of, the coronavirus, not having a plan makes it infinitely harder to do what’s best for you and your family.

A financial plan is essentially putting all the details about your financial life in one place,   including your savings, debt, assets and investments, life insurance, and other elements that apply to your financial situation. (1) This allows you to fall back on a well-thought plan of action for handling your finances instead of resorting to panic or stress due to the roller coaster we call life. 

Be Ready When Chaos Comes

Let’s start with the elephant in the room, or more accurately, the potential virus in the room. This is not the first time (and won’t be the last) there has been a threat to your health, lifestyle, or money. Since we know this reality, being prepared for when, not if, these circumstances arise is key for having stability and security, no matter what comes your way.

When there is already a plan in place, the panic some people feel is eliminated. Plans set people up for success and everyone deserves the chance to succeed. 

Achieve Your Goals

Did you know you are 42% more likely to achieve your goals if you write them down? (2) Having a financial plan is not just about managing your money, it’s about making sure the time spent to earn your money is used to reach the dreams you have for you and your family, giving you a life full of satisfaction and contentment. 

What do you want for your life now and in the future? What about your loved ones? Whether it’s vacations, having more time at home, putting your kids through college, retiring with dignity, or some other desire, chances are that it involves having some money and a plan for how that money should be allocated.

Starting a financial plan now will allow the future you desire to become a reality. 

Secure Your Future

Review the following actions you can take now to secure your future, which are the basic building blocks of creating a financial plan: 

  • Know your current situation by creating a budget.
  • Have emergency savings for when unexpected expenses arise or to weather a potential job loss.
  • Total up how much debt you have and calculate how much of your monthly income is going toward minimum payments. Create a plan of action for paying down those debts.
  • Determine the household income you need to earn in order to reach your goals.
  • Understand how much you need to invest per month for retirement, which is something a trusted financial advisor can help you determine.

Are You Ready To Create A Financial Plan?

If you don’t currently have a financial plan, now is the time to create one. You have everything to gain and nothing to lose. If you would like to assess how you are doing for retirement so far, take our retirement readiness quiz, and let us know how we can help you take the steps to reach a comfortable retirement by calling us at 410-821-6724 or emailing info@jacobwilliam.com

If you find yourself fearful of where your investments are or if they are invested correctly for your situation, you can also take our Risk Tolerance Questionnaire. We can help you make the changes you need to make, or affirm that where your investments are is exactly where they should be. 

About Dan

Daniel Morrison is the co-founder and Managing Partner of Jacob William Advisory, a wealth management firm whose sole mission is to service their clients’ needs beyond their expectations. Dan Morrison has 27 years of industry experience, and for the past decade, he has been committed to building Jacob William Advisory into one of the foremost wealth advisory firms. Dan graduated from Towson University with a bachelor’s degree of finance in economics and obtained his master’s degree in finance from the University of Baltimore. He is a CERTIFIED FINANCIAL PLANNER™ professional and holds the designations of Chartered Financial Consultant® (ChFC), Chartered Life Underwriter (CLU), and Chartered Advisor for Senior Living (CASL). He and his wife Beth reside outside of Baltimore, Maryland, and have three wonderful children. Dan is involved in his church and he enjoys spending time with his family, playing golf, and sailing. A good book is also never far from his reach. Learn more about Dan by connecting with him on LinkedIn.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor.

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(1) https://www.nerdwallet.com/blog/investing/what-is-a-financial-plan-how-can-i-make-one/

(2) https://www.cnbc.com/2019/09/13/self-made-millionaire-how-to-increase-your-odds-of-success-by-42-percent-marie-forleo.html