Guiding Principles of Financial Planning
Progress – Success is measured by progression towards your goals, and is as much a product of good habits, diversification, managing risk, and staying the course as making successful investment selections.
Discipline – The foundation of any successful Financial Plan is a budget. You are spinning your wheels if you consistently spend as much as you make. Your household spending decisions are best made purposely and in advance.
Debt – Debt wisely used can help build wealth, but attempting to maintain an unsustainable lifestyle can halt any long-term financial goal in its tracks. Becoming debt-free by retirement may be your best financial strategy.
Cash Cushion – Life happens. Surprises, upsets, changes, and the unexpected are expected. Maintaining an emergency fund will help lessen the impact of the unexpected.
Risk Management – Sometimes the unexpected can result in financial catastrophe. Risks from which you could not survive financially can often be transferred through insurance.
Investing – Successful investors have not succeeded by chance. Appropriate investment decisions are made purposely following a disciplined strategy. Many factors are involved in making appropriate investment decisions and a financial advisor is your best resource for meeting your financial goals.
Taxes – Taxes are an important, and frequently overlooked, factor in financial decision making. Tax minimization is prudent where tax evasion is illegal.
Giving – Giving of time and resources benefits everyone and can often result in a reduction of taxes. There are ways in which those benefits may be maximized for both the recipient and the donor.
Future – Plan for your future but live for today. Failure to plan for life’s big events can lead to heartache and disappointment, but delaying all gratification for retirement may deprive you of a joyful experience today. With balance, a well-thought financial plan, and perseverance you can meet your goals for both today and tomorrow.
Estate – Most everyone thinks about the disposition of their assets at death, but not everyone has clearly written estate planning documents that express their wishes. There is comfort in knowing that you have advance directives for medical and end of life decision making.
Legacy – The legacy you leave may be of even more importance than your estate. What impact do you want to make with your family, friends, church, organizations, and/or community? How do you wish to fund that legacy?
Guidance – Whether you receive guidance from friends, family, books, classes, television, radio, newspapers, the internet, a Financial Advisor or specialist; that advice will only benefit you to the degree that it is relevant to your specific circumstances, values and goals and only if that advise leads to action.
Let Wiedeman Financial Services assist you in implementation and realization of those goals.