For many important tasks in our lives, starting is the hardestpart. Whether it’s a workout, a school assignment, or a career change, we oftenhesitate to begin these big, life-changing endeavors due to fear of theunknown. This is part of human nature.
As financial advisors, my team at TruStone Wealth Management frequently encounterspeople who feel this way about starting a financial plan. Some people thinkthey’re “too young” or “too old” to start, or they might misconceive thatfinancial planning only involves investments.
In this article, allow me to clarify what the financial planning process entails so you can better understand the importance of being proactive about your future goals, no matter your age or income.
6 Steps of Starting a Financial Plan
1. Do your research.
The first step of your financial plan is to research financial planning practices, like TruStone Wealth Management. Our website provides biographies and a list of qualifications for all our advisors, to give you an idea of who we are and what we offer. Although you’ll work closely with one advisor, you’ll have access to the combined knowledge and experience of our team and to resources from Ameriprise Financial.
2. Set up an appointment.
Next, you’ll set up an initial appointment with one of our advisors by phone or email. While this sounds simple, I understand reaching out may be the most difficult part of the process. Setting up appointments to discuss your finances with professionals you do not yet know can be overwhelming. However, any discomfort you may feel is a positive sign of personal growth and accountability. When you make the conscious decision to take charge of your financial future, you are opening yourself up to learning new things, meeting new people, and putting your trust in someone to help you handle an important aspect of your life.
3. Talk about your situation.
After you’ve made your appointment, the next step is to meet with an advisor to get to know each other, talk about your financial situation, and discuss your short- and long-term goals. TruStone takes a holistic approach to financial planning, so we may discuss multiple areas of your financial situation to get a full picture of your personal circumstances and determine our course of action moving forward.
For some people, this step may be the most difficult, since many of us have been taught not to talk about money. Our team encounters this all the time, and we understand the internal conflict you may feel. Rest assured that everything we discuss is confidential. By providing a full picture of your financial situation to your advisor, you may be surprised to learn that your long-term goals are not as far away as you think. We’ll have a better idea of available options after we have an honest discussion.
4. Dive into the details.
Next, we will dig deeper into your financial situation, including account information and relevant documentation. This step heavily overlaps with the previous step about discussing your situation, but is much more in-depth. Once you give our team the green light, we’ll dive deeply into your finances and work with you to create a customized financial plan. This process may take several meetings to complete, depending on your situation.
5. Create a game plan.
Now that you’ve given us the full scope of your finances, we’ll look over your options to determine a plan that will help you achieve your goals, whether it’s buying a house, traveling, retiring at a certain age, or donating to causes you care about. We’ll also help you make room in your plan for the unexpected, as situations may arise that require adjustments to your financial plan. That’s life. However, working with a financial advisor can help you feel more secure about your future, no matter what comes your way.
6. Periodically review your plan.Meeting with a financial advisor is not a “one-and-done” scenario, but rather along-term partnership. We will review your plan together once a year (or more often, if you prefer) to ensure that it is on track. Why Proactivity Matters in Financial Planning Every day, week, or year you wait to start a financial plan can lead to fewer options and more missed opportunities in the future. Remember in
school how you waited until the last minute to finish a homework assignment and your grade was not as great as it would have been if you had started sooner? Financial planning is a similar concept, but instead of a grade, your future is on the line. Being proactive instead of reactive about your financial plan will give you more time to make small but informed decisions with your advisor. Down the road, these strategies may make a big difference in your quality of life. Ready to get started? Contact our team at TruStone Wealth Management today.
Kyle Kerby
APMA™, CRPC™Together, we can work to keep you on-track towards your financial goals.
Request a consultation with me to learn more.
Read more articles by Kyle Kerby