What is the value of a comprehensive financial plan? A potential early retirement and a more fulfilling lifestyle are just some of the benefits that a financial plan can offer. For the full list, check out this week's Arista Advice.
Question of the week is: "Paul, what is the value of a comprehensive financial plan?"
We take these financial plans for granted because we're swimming, navigating, and using them all day everyday. We wanted to share a few thoughts with you.
A comprehensive financial plan brings clarity to your financial situation, so it's easier to make the right decision. It also helps to identify the gaps between your current financial situation and what you would like to accomplish and what you aspire to have in the coming years and making sure that you're moving forward in the right direction.
A comprehensive plan also helps you balance your enjoyment of today with your goals for tomorrow. Following a financial plan doesn't also mean that you have to have a limited lifestyle. In fact, in many cases by having a good financial plan you can discover that you may be living below your means and not fulfilling a full retirement lifestyle.
Here's an example of a client that we did a recent financial plan for. Notice the blue bars which show the value over time based on the client's basic facts and previous life before their financial planning. After we did the financial planning and found ways to optimize their life, the green bars begin to appear, and the green bars showed the proposed adjustments and proposed plan.
To discover the value of a comprehensive financial plan, there's three things to look at and to remember.
Number one: What's the dollar value gained in the portfolio?
Number two: Years of funding gained in retirement, and number three: Time given back to you, as the investor, to potentially retire earlier and enjoy life and to get on achieving your aspirations that you have inside.
Hope you're well. Have a great week.