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The importance of financial planning

The importance of financial planning

October 16, 2020

If you had to fill in the blank to the phrase, “Life is ___________”, it is doubtful many of us would say ‘easy’, ‘uncomplicated’, or ‘a straight line from start to finish’. Life is many things and no one’s journey is the same. We Plan.

Our financial lives and our financial futures are included in this sometimes chaotic reality. Despite this uncertainty, we still plan for our tomorrows. We work and educate ourselves for the hope of a better future. Planning is the difference between surviving and thriving, between chaos and calm. That is true of Financial Planning as well. We Plan.

What is Financial Planning? It is not simply allocating a portfolio, stock picking, or timing the market. It’s not creating a will, creating a plan to become debt free, or simply creating a budget and saving as much as you can. More broadly, financial planning is the art of expecting the unexpected. How do we cope with an ever changing landscape of possibilities? How do we get from survival to security, from reacting to anticipating, from chaos to calmness? We Plan.


Financial planning follows 6 basic steps.

Step 1. Organize - gather financial documents and information so your advisor can determine your current financial position.

Step 2. Define & Prioritize - determine, quantify, and write down goals for your financial future and prioritize them.

Step 3. Analyze – your advisor assesses your goals and priorities, considers expected and unexpected events that may occur over your lifetime, and creates an action plan that will help you reach your financial goals and objectives.

Step 4. Present – your advisor presents the plan along with possible implementation strategies.

Step 5. Monitor – you and your advisor continue to monitor your plan as life changes.

Step 6. Adjust - as changes occur in areas such as tax law, income/career, family dynamics, health, etc. meet with your advisor to determine how these changes may affect your goals, and adjust the plan as needed.

Skipping any one of these steps may prevent you from reaching your financial goals. Some may see financial planning as an additional item on the to do list. To us, it is a valuable life process that can give you clarity and motivation, provide accountability and adaptability, and may potentially provide you more financial flexibility later in life. It is not a get rich quick scheme, it is a slow and steady wins the race theme. We Plan.

Each person’s goals are different, as is each person’s starting point. No matter where you are in your financial planning process, you don’t have to be an expert. We all rely on guides and professionals in areas of life that we know are important but do not have the knowledge or time to master ourselves. If you would like a financial guide to work beside you as you charter a path to reach your financial goals, please contact us at Confidere Financial. We will help you get started. We Plan.

Separate from the financial plan and our role as financial planner, we may recommend the purchase of specific investment or insurance products or accounts. These product recommendations are not part of the financial plan and you are under no obligation to follow them.